Oando Plc has released its unaudited financial results for the year ending December 31, 2025, revealing a profit after tax of N241.8 billion, marking a 10% increase from N220.1 billion during the year that ended on December 31, 2024.
The profit growth was underpinned by a rise in upstream production, reversals of impairments, and favorable tax adjustments.
Conversely, the company’s revenue decreased to N3.21 trillion in 2025, down from N4.09 trillion in 2024. Gross profit also declined to N27.8 billion, compared to N155.9 billion the previous year.
These reductions in earnings reflect a shift in the company’s revenue mix, as Oando scaled down on high-turnover, lower-margin refined-product trading while focusing more on higher-margin crude and gas trading, along with non-cash impacts.
The review period highlighted a year-on-year production increase of 32% in Oando's upstream sector, averaging 32,482 barrels of oil equivalent per day (boepd). This growth was propelled by a 36% rise in crude oil production to 11,269 barrels per day (bopd), a 24% increase in gas production to 19,982 boepd, and an impressive 715% surge in natural gas liquids (NGL) production to 1,231 barrels per day.
As Africa’s foremost indigenous energy provider, Oando attributed this growth to the full-year consolidation of its interest in the NAOC Joint Venture, enhanced operational uptime due to the reactivation of previously constrained wells, and targeted upgrades to infrastructure across its operated assets.
Commenting on the company’s financial results for the year, Mr. Wale Tinubu, the Group Chief Executive of Oando, stated that 2025 was marked by relentless execution as the company successfully transitioned from integrating the NAOC Joint Venture to operational achievement.
“He noted that throughout the year, Oando reinforced asset integrity, enhanced security within its operating areas, and substantially improved uptime, resulting in a 32% year-on-year increase in overall production. Operated Joint Venture production rose to approximately 80,545 boepd, equating to 32,482 boepd attributable to Oando, alongside a 30% rise in crude oil liftings and a 59% boost in gas sales volumes.
“Building on this achievement, the company initiated its development drilling program with the successful completion and commencement of production from the Obiafu-44 gas-condensate well, marking the first milestone in a phased 36-well development initiative aimed at restoring field productivity, unlocking additional production capacity, and advancing the Group’s medium-term growth targets.”
“Within its trading segment, Oando experienced a 42% increase year-on-year in crude oil cargoes traded, rising to 26 crude oil cargoes (29.4 million barrels) from the previous 21 cargoes (20.7 million barrels) traded in 2024.
“The company also intentionally paused premium motor spirit (PMS) trading in response to structural changes in Nigeria’s domestic downstream market. This strategic adjustment, while leading to a short-term decrease in reported earnings, aligns strategically with the Group's focus on margin quality and capital efficiency.
“In our downstream trading sector, we adeptly responded to shifting market dynamics by transitioning our portfolio away from gasoline imports towards more profitable crude and gas options. We expanded global exports while leveraging structured offtake and pre-export financing arrangements to support liquidity, cash flow resilience, and effective production monetization for our clients,” he further elaborated.
The review period demonstrates Oando's shift from asset integration post- acquisition to a definitive mastery of operations, evidenced by robust upstream performance. Capital expenditure saw a notable surge compared to 2024, with increased investments in upstream development, facility integrity, and infrastructure improvement.
This strategic investment is fundamental to achieving growth in production and revenue. It illustrates that the company is well-positioned for the future.
Following its optimization strategy, Oando achieved $17.7 million in cost savings across vital operating inputs by means of disciplined contract management.
During this period, retained earnings improved, showcasing positive realignments in the intra-group balance sheets related to ongoing capital restructuring.
Collectively, these factors bolster the financial strength of the company, equipping it to provide sustainable, long-term value as it enters its next growth phase. As the year 2026 approaches, Tinubu emphasized that with operational control firmly established and the groundwork for growth laid out, the company focuses on executing its development program to expedite production growth, bolster cash generation, and enhance long-term value creation. He concluded by stating, “We will continue to allocate capital wisely, deepen operational resilience, and capitalize on the momentum gained.”
Comments (0)
You must be logged in to comment.
Be the first to comment on this article!