Sonangol, Angola’s national oil firm, has recorded a net profit of 13 billion kwanzas ($90 million) in the year 2016, the company’s Chief Executive Officer, Isabel dos Santos revealed this week.
According to the Sonangol C.E.O, who was speaking at a press conference that served to present the company’s 2016 assessment report, the company’s 13 billion kwanzas profit and 525 billion kwanzas in EBITDA (Earnings before interest, taxes, depreciation, and amortization) reflects a reversal of the trend of abrupt drop in the previous two years, thus solidifying the company’s recovery base.
She stressed that results are fundamental for the company to re-take its position as a driving force of the Angolan economy and a generator of wealth for the country.
Another positive aspect, she revealed, was that despite all the conditioning factors, in 2016 it was possible to keep the crude oil production above the level of 1.7 million barrels per day, thus placing Angola as number one producer in the African continent.
Isabel dos Santos further explained that the current board of Sonangol, who was inaugurated in June last year, took over at a moment of the economic crisis facing the country, with the company dealing with a 60 percent fall in its income, a high debt and low oil prices in the market.
In view of such framework, the company initiated a transformation process and put into place measures that have enabled the board to know the reality of Sonangol at different levels and areas.
Therefore, she went on to explain, given the dimension of the Sonangol Group, as well as the results of studies that were conducted, it was necessary for the board to resort to external assistance, principally in four critical and fundamental areas, namely its finances, juridical area, human resources, and strategy.
With such restructuration moves, the company managed to increase its income with a programme dubbed Sonaplus, which yielded $1.1 billion, from which the company has effectively made $260 million.
In the same period, the company also executed a plan dubbed Sonalight, focused on reducing the company’s expenses up to 200 billion kwanzas (roughly $1.2 billion), of which $680 million are already approved figures.
During the year 2016, she disclosed, Sonangol achieved an effective saving of about $320 million. “This was possible through the implementation of measures intended for improvements in the internal processes and control mechanisms, adjustments in the management and financial policies to the best international practices, review of investment models and strategies, competence and merit as the basis for decisions relating to human resources.”
As regards its social responsibility focus, she said, Sonangol made investments above the figure of AKZ3.6 billion ($22 million) in projects in the fields of education, health and vocational training.