Oando Sustains Strong Growth Momentum with 172% Surge in Gross Profit in Q1 2025

Oando PLC, one of Africa’s leading indigenous energy solutions providers, has posted a robust financial performance in Q1 2025, reporting revenue of ₦933 billion and a remarkable 172% year-on-year increase in gross profit to ₦85 billion. This performance underscores the company’s growing operational strength, efficient integration of newly acquired assets, and commitment to long-term value creation.

This result follows Oando’s impressive FY 2024 audited financial report, which recorded a 44% year-on-year growth in revenue to ₦4.1 trillion, up from ₦2.9 trillion in FY 2023, and a 267% surge in profit after tax to ₦220 billion.

Strategic Asset Integration and Production Growth

Oando’s financial trajectory is being propelled by its successful acquisition and consolidation of Nigerian Agip Oil Company (NAOC) assets from Eni. In Q1 2025, the company achieved a 2% year-on-year revenue increase from ₦915 billion to ₦933 billion. More significantly, gross profit rose from ₦31 billion in Q1 2024 to ₦85 billion, highlighting a strong margin expansion in its Exploration & Production (E&P) business.

Production metrics further reinforce the positive trend:

• Crude oil output jumped 132% to 11,369 barrels of oil per day (bopd)

• Gas production rose 56% to 25,185 barrels of oil equivalent per day (boepd)

• NGL output increased 30% to 1,040 bpd

Average daily production climbed 72% year-on-year to 37,595 boepd, driven by the full-year contribution from NAOC assets and reactivation of previously shut-in wells.

In safety performance, Oando recorded 12.3 million Lost Time Injury (LTI)-free hours, maintaining its industry reputation for strong Health, Safety, and Environment (HSE) standards.

Upstream Expansion and Regional Footprint

Beyond Nigerian borders, Oando made strategic moves to expand its upstream presence. The company was recently awarded operatorship of Block KON 13 in Angola’s Kwanza Basin, marking a strategic entry into Southern Africa’s oil market. Additionally, Oando was named preferred bidder for the Guaracara Refinery in Trinidad and Tobago, signaling its growing influence in the Afro-Caribbean energy space.

Group Chief Executive, Wale Tinubu, CON, described Q1 2025 as a “strong start,” attributing the company’s success to “disciplined execution and a relentless focus on operational efficiency.”

He added:

“Beyond Nigeria, our expansion into Angola and the Caribbean reflects our strategy of evolving into a more geographically diversified energy company. These moves strengthen our integrated business model and demonstrate our readiness to play a bigger role on the global energy stage.”

Downstream and Renewable Energy Performance

In downstream trading, Oando Trading increased its volume to six crude cargoes (5.96 MMbbl), up from four (4.86 MMbbl) in Q1 2024, reflecting stronger execution and improved offtake arrangements.

Oando Clean Energy (OCEL) continued to grow its footprint in Nigeria’s renewable energy space. In Q1 2025:

• The e-mobility program recorded 53,941 electric vehicle (EV) rides

• Over 42,779 kilograms of CO₂ emissions were averted

• Nigeria’s first National Wind Resource Capacity Report was published, identifying wind potential across all states

2025 Outlook and Capital Plans

Oando is targeting average full-year production of 30,000–40,000 boepd, backed by a balanced capital program comprising:

• 3 new wells

• 9 well workovers

• 6 rig-less interventions

The company is projecting a capital expenditure (capex) of $250–270 million focused on drilling, infrastructure development, and ESG-related projects. It also aims to cut operational costs by 20%.

Trading volume targets for 2025 include:

• 25–35 million barrels of crude oil

• 750,000–1,000,000 metric tonnes of refined products

For OCEL, plans include:

• Deploying 50 electric buses

• Advancing its solar PV module assembly plant to Final Investment Decision (FID)

These plans are supported by Oando’s recent successful upsizing of its reserve-based lending facility (RBL2) to $375 million, enhancing liquidity and financing flexibility to pursue upstream growth.

Sector Context and Indigenous Leadership

Oando’s Q1 performance reflects a broader shift in Nigeria’s upstream oil and gas sector. Other indigenous players like Seplat and Aradel are also reporting strong growth:

• Seplat recorded ₦1.228 trillion in revenue, up 350%

• Aradel reported ₦199.9 billion in revenue, with ₦34.2 billion in profit after tax

These developments illustrate the increasing capacity of Nigerian-owned firms to efficiently operate formerly IOC-held assets, boosting national production and deepening local participation in the sector.

Conclusion

With a solid start to the year, Oando’s Q1 2025 results affirm the company’s strategic agility, operational excellence, and long-term vision. As the energy landscape continues to evolve, Oando is well-positioned to lead Africa’s energy transition while delivering consistent value to shareholders and stakeholders across the continent.