Angola produces more oil in 2015 but revenues fall 34 pct

26 February 2016

In 2015 Angola produced over 649 million barrels of oil, a 6 percent increase year on year and a daily average of 1.779 million barrels, Angolan state oil company Sonangol said Thursday in a statement.

Natural gas production in turn fell 8 percent to 507,000 tons, in a year in which the natural gas processing plant in Soyo, in the north, remained at a standstill.

Sonangol posted income of 2.29 trillion kwanzas (US$14.38 billion), “lower by about 34 percent against total revenue in 2014,” a drop that was partially offset by higher income from refining operations, distribution and sale of fuels.

“The increase in fuel prices in January and April 2015 was decisive for this partial equilibrium in the company’s revenue,” the statement said.

EBITDA (earnings before interest, tax, depreciation and amortization) registered by Sonangol in 2015 fell 45 percent to 1.24 trillion kwanzas (US$7.08 billion) and net profit fell 68.27 percent to 44.148 billion kwanzas (US$276 million).

Sonangol said that the main factors that negatively affected net income were the reduction in oil prices, as well as impairment charges on oil assets in production, dry wells and no commercial discoveries. (macauhub/AO)