Last year was marked by a decline in the company’s results, driven by a $940 million drop in operating revenues, despite a reduction in costs. Meanwhile, investments and debt increased.
Sonangol’s operating revenues in 2024 fell by 8.2% to $10.543 billion, down from $11.483 billion in 2023, while operating costs also decreased by 8.5% to $7.153 billion, according to Expansão’s calculations based on data released this week by the national oil company. Nevertheless, the EBITDA margin remained at 32%.
As a result, operating profits shrank by 7.5%, dropping from $3.666 billion in 2023 to $3.39 billion last year. This means earnings before interest, taxes, depreciation, and amortization (EBITDA) fell by $277 million (see chart).
Last year was also marked by a 15.4% increase in debt stock, rising by $603 million from $3.917 billion in 2023. Investments by the national oil company also grew, up 16.4% to $2.385 billion.
Sonangol stated that 2024 presented “numerous challenges,” highlighting the “instability in the geopolitical environment and its consequent impact on market behavior, leading to a drop in the price of crude oil sold by Sonangol.” The average price fell from $82.04 per barrel in 2023 to $80.09 in 2024. However, the company produced 201,000 barrels of oil per day, slightly above the 200,000 bpd recorded in 2023.
In terms of operated production share, there was a slight increase from 2.05% in 2023 to 2.12% last year. China remains the largest buyer of Sonangol’s oil, followed by India.
During the company’s annual financial presentation on Tuesday, Sonangol’s Chairman, Sebastião Gaspar Martins, announced that the oil company is preparing to initiate the privatization process for 30% of its capital through a stock market listing. However, he noted that certain issues, such as fuel subsidies that impact the company’s finances, still need to be addressed. “The company belongs to the State, and what happens next will depend on the government’s decision, supported by the recommendations we will present based on our ongoing work,” he stated.
Speaking at the Sonangol event, Minister of Mineral Resources, Petroleum, and Gas, Diamantino Azevedo, stressed that the company’s surplus workforce is one of the challenges that must be resolved before privatization can proceed. “I mentioned the more than 2,000 surplus workers at Sonangol. This is one of the internal issues that Sonangol must address as part of its restructuring and preparation for the stock market. Excess personnel, some non-essential assets and liabilities, and increasing oil production… These are serious concerns,” warned the minister.
Currently, the company has 7,724 “active employees,” according to the presentation held last week.
Source: Expansão
