Sonangol reports increase in product sales to Asia, South America

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It cited China, India and Taiwan in Asia and Brazil, Chile and Uruguay in South America as the main markets in this regard.

“Whilst 2014 was a difficult year, marked by sharp falls in global oil prices in the second half of the year, we have taken firm action to adjust to the changed environment,” said company president, Francisco de Lemos José Maria.

“Sonangol continues to benefit from its evolution into an integrated energy company with a diverse portfolio, a strong natural gas business and growing downstream operations.”

(READ MORE: Angola exports first ever cargo of LPG)

He added that the company is implementing a comprehensive business efficiency strategy, focused on process improvement, cost reduction and capital discipline. 

“However, Sonangol is also a long-term business and we will continue to invest through the cycle to maintain our market share and deliver against our operational, commercial and financial objectives.”

The company indicated that its share of Angola’s crude oil production in 2014 rose to 13 per cent, up four per cent on the previous year.

Sonangol added that its total production of natural gas in Angola was 864,401 metric tons, down 28.5 per cent on 2013.

“Sonangol has implemented a comprehensive strategy to improve business efficiency, increase productivity and deliver tighter capital discipline,” it said.

“The balance sheet remains strong, with total assets of 51,498 million dollars, up three per cent on the previous year. This gives us the flexibility we need to continue to invest for the medium and long term.”

(READ MORE: Nigeria vs Angola – The battle of the oil kings)

Its sales however, decreased 11.6 per cent to 36,476 million dollars from 41,250 million dollars in 2013 and EBITDA dropped 12.5 per cent to 6,270 million dollars from 7,169 million dollars.

“Improving the quality of capital expenditure on maintaining market share and focusing on customer delivery will help us deliver our operational, commercial and financial objectives,” Sonangol said.

“The most important component of the business efficiency programme will be to continue investment in Sonangol’s core business activities.”