Oando’s profit up 10% to N241.3bn as upstream production rises 32% in 2025

By Peter Egwuatu

Oando Plc, Africa’s leading indigenous energy solutions, has recorded a 10% increase in Profit After Tax, PAT to N241.3 billion for the unaudited results ended 31 December 2025 compared to N220.1 billion in 2024.

This was supported by higher upstream production, impairment reversals, and favourable tax adjustments.

However, its revenue declined 21% to N3.21 trillion from N4.09trillion in 2024, while gross profit decreased 82% year-on-year to N27.8 billion, down from N155.9 billion in 2024. These declines in earnings reflect the company’s change in revenue mix as it scaled back high-turnover, lower-margin refined-product trading in favour of higher-margin crude and gas trading opportunities, as well as the impact of non-cash items.

Meanwhile, the company also recorded a 32% Year-on-Year, YoY increase in production by its upstream business, averaging 32,482 boepd,.

The company noted that the growth was driven by a 36% increase in crude oil production to 11,269 bopd, a 24% increase in gas production to 19,982 boepd, and a 715% increase in NGL production to 1,231 bpd.

The Group attributed the production growth to the full-year consolidation of the NAOC JV interest, improved operational uptime resulting from the reactivation of previously constrained wells, and targeted infrastructure upgrades across operated assets.

Commenting on the full year-end 2025 unaudited results, Group Chief Executive, Oando PLC, Wale Tinubu, said, “2025 was a year of relentless execution as we successfully transitioned from the integration of the NAOC Joint Venture into operational delivery.

Over the year under review, we reinforced asset integrity, strengthened security across our operating areas, and materially improved uptime, delivering a 32% year-on-year increase in total production. Operated Joint Venture production averaged approximately 80,545 boepd, translating to 32,482 boepd net to Oando, alongside a 30% increase in crude oil liftings and a 59% increase in gas sales volumes.

Building on this foundation, we launched our development drilling programme with the successful completion and start-up of the Obiafu-44 gas-condensate well. This well represents the first execution milestone within a phased 36-well development programme, designed to restore field deliverability, unlock incremental production and advance the Group’s medium-term growth objectives.”

Within its trading business, the Group recorded a 42% increase year-on-year in crude oil cargos traded, rising to 26 crude oil cargos (29.4 MMbbl) compared to 21 cargos (20.7 MMbbl) traded in 2024. During the period, Oando deliberately paused premium motor spirit (PMS) trading in response to structural changes in Nigeria’s domestic downstream landscape. While this rebalancing resulted in a short-term reduction in reported earnings, it aligns with the Group’s longer-term focus on margin quality and capital efficiency.

“In our downstream trading business, we responded decisively to evolving market dynamics by deliberately rebalancing our portfolio away from gasoline importation toward higher-margin crude and gas opportunities. We expanded global exports and leveraged structured offtake and pre-export financing arrangements to support liquidity, cash-flow resilience, and effective production monetization for our clients,” added Tinubu.

The period under review showcases the company’s transition from asset integration following the acquisition to a decisive assumption of operatorship, evidenced by strong upstream performance. Capital expenditure increased significantly from 2024, with higher investment in upstream development, facility integrity, and infrastructure optimisation. This investment is strategic; production growth and increased revenue depend on these foundational capabilities being in place, and more importantly, it is evidence that the company is postured correctly for the future.

Looking ahead, Tinubu remarked “With operational control firmly embedded and the foundations for growth clearly established, our focus is on the diligent execution of our development programme to accelerate production growth, strengthen cash generation and enhance long-term value creation. As we enter 2026, we will continue to allocate capital prudently, deepen operational resilience and build on the momentum achieved.”

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