Sonangol with losses of three billion dollars in 2020

According to the accounts report available on the company's website, the company's net result was a consequence of the "drastic reduction in revenues from crude oil sales and the high degree of impairments recorded, due to the reduction in the price of a barrel of oil , also implying a reduction in the company's proved reserves [estimates relating to reserves with a high degree of confidence in production], taking into account the abnormal year experienced, due to the covid-19 pandemic".

At an operational level, results stood at US$2.2 billion, allowing us to maintain positive equity at 9 billion dollars and financial capacity to continue operations.

The report also highlights the completion of the Restructuring Program in 2020 with the adoption of a new organizational and governance model and the financial restructuring, which allowed savings of 1441 million dollars, contributing to a reduction in fuel imports by 66 per per cent, structural costs at 14 per cent, mining costs at 12 per cent and personnel costs at 9 per cent.

As for the privatizations, three assets were sold, with a total cash inflow of approximately 40.6 million euros.

The document also marks the start of the implementation of the Exploration and Production strategy, which foresees an increase in the share of production operated from 2 percent to at least 10 percent in 2027, the development of the Lobito Refinery project and the final investment decision for the construction of the 1st phase of the Cabinda Refinery, which foresees a processing capacity of 30,000 barrels per day.

In 2021, according to the perspectives presented in its annual report, Sonangol plans to invest around 2.2 billion dollars, with a greater focus on its nuclear value chain and on renewable energies.

The auditor of Sonangol's accounts, the consultancy KPMG, expressed several reservations regarding the financial statements, namely with regard to the more than 1.8 billion dollars in credits of the group to the State, as they did not exist on the date on which the In the report, a repayment plan for these credits was audited, allowing for the determination of their present value.