African State-Owned Oil Companies Report $27.95 Billion Earnings in 2023 Amid Fluctuating Crude Prices
An analysis of financial reports from three major state-owned oil and gas companies in Africa has revealed combined earnings of $27.95 billion in 2023, driven by rising crude oil prices. Sonatrach of Algeria, the National Oil Corporation of Libya, and Sonangol of Angola reported earnings of $21 billion, $6.95 billion, and $3.4 million, respectively. Algeria’s earnings data covered January to May, while Angola and Libya reported revenues for the first half of the year. Nigeria’s state oil firm, Nigerian National Petroleum Company Limited, has yet to publish its earnings.
Toufik Hakkar, CEO of Sonatrach, stated that the company’s oil and gas earnings for the first five months of 2023 reached $21 billion, marking a 2% increase compared to the same period in the previous year. Hakkar emphasized that Algeria requires more visibility from European firms before it can expand its gas exports.
However, Angola and Libya experienced declines in revenue compared to the first half of 2022. Angola’s government reported a decrease of 2.8 billion kwanzas ($3.4 million) in oil revenue for the first half of 2023, attributed to lower export volumes and a drop in the average price of a barrel. Angola, Africa’s second-largest oil producer, expects an average barrel price of $75 for its national budget in the current fiscal year.
Libya’s central bank indicated that crude oil revenues in the first half of 2023 fell to 33.4 billion dinars ($6.95 billion) from 37.3 billion dinars during the same period in 2022. Despite the revenue decline, Libya’s crude oil production increased in the first half of the year, averaging around 1.157 million to 1.169 million barrels per day.
Both Angola and Libya face challenges in their oil sectors. Angola’s revenue decline stems from lower export volumes and prices, while Libya struggles to attract foreign investment amid internal political and governance issues. The earnings fluctuations underscore the impact of global oil price dynamics on the economies of these oil-producing African nations.