Oando Records 10% Rise in Profit After Tax to N241.3bn on Strong Upstream Performance

Oando Plc has reported a 10 per cent increase in profit after tax to N241.3 billion for the financial year ended December 31, 2025, driven largely by a strong rebound in upstream production, impairment reversals and favourable tax adjustments.

The energy company disclosed this in its unaudited full-year 2025 results, noting that upstream production rose by 32 per cent year-on-year to an average of 32,482 barrels of oil equivalent per day (boepd).

According to the company, crude oil production increased by 36 per cent to 11,269 barrels per day, gas production rose by 24 per cent to 19,982 boepd, while natural gas liquids (NGL) output surged by 715 per cent to 1,231 barrels per day.

Oando attributed the production growth to the full-year consolidation of its Nigerian Agip Oil Company (NAOC) joint venture interest, improved operational uptime following the reactivation of previously constrained wells, and targeted infrastructure upgrades across its operated assets.

Despite the improved profitability, the Group’s revenue declined by 21 per cent to N3.21 trillion in 2025 from N4.09 trillion recorded in 2024. Gross profit also dropped sharply by 82 per cent to N27.8 billion, compared to N155.9 billion in the previous year.

The company explained that the decline in revenue and gross profit reflected a deliberate shift in its revenue mix, as it scaled back high-volume, low-margin refined petroleum product trading in favour of higher-margin crude oil and gas trading, as well as the impact of non-cash items.

Commenting on the results, Group Chief Executive Officer of Oando Plc, Mr. Wale Tinubu, CON, described 2025 as a year of “relentless execution,” marked by the transition from post-acquisition integration of the NAOC joint venture to full 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,” Tinubu said.

He added that operated joint venture production averaged about 80,545 boepd, translating to 32,482 boepd net to Oando, alongside a 30 per cent increase in crude oil liftings and a 59 per cent rise in gas sales volumes.

Tinubu also disclosed that the company successfully launched its development drilling programme with the completion and start-up of the Obiafu-44 gas-condensate well, describing it as the first milestone in a phased 36-well development plan aimed at restoring field deliverability and unlocking incremental production.

Within its trading business, Oando recorded a 42 per cent increase in crude oil cargos traded, rising to 26 cargos or 29.4 million barrels in 2025, compared to 21 cargos or 20.7 million barrels in 2024.

The company said it deliberately suspended premium motor spirit (PMS) trading during the year in response to structural changes in Nigeria’s downstream sector, noting that while the decision resulted in short-term earnings reduction, it aligns with its long-term strategy of improving 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.

Oando also revealed that capital expenditure rose significantly during the year, reflecting increased investment in upstream development, facility integrity and infrastructure optimisation, which it described as critical to sustaining future production growth.

In addition, the Group recorded cost savings of $17.7 million through contract optimisation and returned retained earnings to a positive position, supported by non-cash intra-group balance sheet realignments linked to ongoing capital restructuring.

Looking ahead, Tinubu said the company would focus on disciplined execution of its development programme to accelerate production growth, strengthen cash generation and deliver long-term value as it enters the 2026 financial year.