The independent auditor Ernst & Young Angola, Lda has approved with reservations the 2024 Financial Report and Accounts of the National Fuel Company of Angola (SONANGOL, EP), which posted profits of just over 736 billion kwanzas. This represents a decline of approximately 26% compared to the same period in the previous year, when the company reported net profits of just over 930 billion kwanzas.
In its report, the external auditor highlighted several reasons for the qualified approval, notably the “Accounts Receivable” item, which amounted to 6.4 billion kwanzas (compared to 5.3 billion kwanzas in 2023). These figures refer to credits owed to Sonangol by the State and other public entities. Although 1.1 billion kwanzas (2023: 995.5 million kwanzas) are in a process of validation and reconciliation, the auditor was unable to confirm the ownership, existence, or recoverability of these amounts, nor the possible impact of this uncertainty on the financial statements.
Regarding the remaining balance of 5.3 billion kwanzas, the auditor noted that, as of the conclusion of the audit, there was no reimbursement plan in place. This prevents Ernst & Young Angola from determining the timeliness of the recovery of these amounts and, consequently, the correct classification between current and non-current assets.
On oil production, Sonangol’s Financial Report — signed by Chairman of the Board Sebastião Gaspar Martins, Executive Director Baltazar Miguel, Head of Oversight and Consolidation Department, and Finance Director Divaldo Kienda Feijó Palhares — states that Angolan crude exports increased, with a total of 147 shipments, two more than in the previous year. This increase is mainly due to a rise in Sonangol’s and the Concessionaire’s lifting rights.
The report also highlights weak demand from China, which the board attributes to narrow refining margins and increased freight rates for VLCC tankers on the West Africa–Far East route observed at the beginning of the year.
As for pricing, the report indicates that Angolan crude recorded a maximum of USD 91.326/barrel, a minimum of USD 70.509/barrel, and an annual weighted average of USD 80.136/barrel — which is USD 1.854/barrel lower than the 2023 average of USD 81.990/barrel.
Source: Correio da Kianda
