Oando production surge underpins FY 2025 performance

Oando PLC, a leading indigenous energy group listed on both the Nigerian Exchange Ltd. and the Johannesburg Stock Exchange, has released its unaudited financial results for the year ended December 31, 2025, highlighting a notable increase in upstream output and robust earnings despite a year-on-year decline in overall revenue.

In a statement accompanying the results, Group Chief Executive Wale Tinubu said 2025 marked a period of “relentless execution” as the company transitioned from post-acquisition integration to full operational delivery following the consolidation of the Nigerian Agip Oil Company (NAOC) Joint Venture assets. According to the release, this shift supported a 32 per cent increase in total production, with Group output averaging approximately 32,482 barrels of oil equivalent per day (boepd) compared with the prior year. The company’s operated joint venture assets contributed strongly, averaging about 80,545 boepd.

The unaudited results show that Oando’s revenue declined by 21 per cent to N3.21 trillion from N4.09 trillion in the previous year. The company said this revenue contraction was driven by a deliberate reduction in lower-margin refined product trading amid structural changes in Nigeria’s downstream market, even as upstream volumes expanded.

Gross profit dipped sharply by 82 per cent to N27.8 billion, largely reflecting the revenue mix change and impacts from non-cash items, while profit after tax rose 10 per cent to N241.3 billion, supported by higher upstream production, impairment reversals, and favourable tax adjustments.

Oando’s capital expenditure surged to N101.9 billion from N18.5 billion in 2024 as the company increased investment in upstream development, facility integrity, and infrastructure optimisation following the assumption of operatorship of key assets. Cash flows from operations also improved significantly year-on-year as working capital management strengthened.

The company’s upstream segment continued to perform well, driven by production growth across oil, gas, and natural gas liquids (NGLs). Crude oil production rose by 36 per cent, while gas volumes climbed 24 per cent and NGL output grew a notable 715 per cent compared with the previous year. The results also confirmed the completion and commissioning of the Obiafu-44 gas-condensate well, a key milestone in the company’s five-year drilling plan.

Oando’s trading division also recorded improvements, with 26 crude cargoes traded during the year — a 42 per cent increase — even as premium motor spirit trading was paused in response to shifts in domestic refined product supply dynamics. The company has also been selected as preferred bidder for the Guaracara Refinery in Trinidad & Tobago, positioning it for strategic downstream optionality.

The results highlighted strong safety performance, with zero fatalities and zero lost-time injuries recorded during the period, and ongoing efforts to reinforce security and mitigate operational risks across key assets.

Oando’s 2025 performance underscores a strategic pivot toward higher-value upstream operations and disciplined capital allocation, even as the broader energy market landscape evolves. The unaudited results were authorised for publication by Group Chief Financial Officer Adeola Ogunsemi.