Oando Plc has reported a profit after tax of N204.8 billion for the financial year ended December 31, 2025, marking a significant turnaround driven by improved operational performance, impairment reversals and tax credits.
The audited financial results, released to the Nigerian Exchange Limited (NGX) on Monday, showed that the indigenous energy company entered a new phase of growth following the first full-year contribution from the Nigerian Agip Oil Company (NAOC) Joint Venture assets acquired in 2024.
The company said 2025 represented a transition from acquisition-led expansion to operational execution, balance sheet optimisation and value realisation across its enlarged asset portfolio.
Revenue for the year stood at N3.2 trillion, compared with N4.1 trillion recorded in 2024.
The decline, according to the company, reflected a deliberate optimisation of its trading business and its exit from lower-margin Premium Motor Spirit (PMS) activities in favour of higher-margin crude oil and gas opportunities.
Despite lower revenue, Oando significantly improved profitability through stronger operational efficiency and disciplined financial management.
Operational cash generation rose to N258.3 billion during the year, while cash and cash equivalents increased to N422.9 billion, underscoring improved working capital management and stronger liquidity.
The company also invested N135 billion in capital expenditure during the year, focusing on high-impact upstream activities aimed at boosting production and enhancing long-term reserves.
Operationally, Oando posted an average production of 32,482 barrels of oil equivalent per day (boepd), representing a 32 per cent year-on-year increase.
The growth was attributed to improved uptime across key assets, enhanced operational reliability and stronger output from crude oil, natural gas and natural gas liquids.
The company maintained a strong safety performance throughout the year, recording zero fatalities, zero lost-time injuries and a Total Recordable Incident Rate (TRIR) of 0.05.
Its proved and probable (2P) reserves stood at 928 million barrels of oil equivalent, providing long-term production visibility, while crude trading volumes increased by 24 per cent year-on-year to 25.7 million barrels.
Oando also strengthened its balance sheet by expanding its Reserve-Based Lending (RBL2) facility to $375 million, led by Afreximbank, a move expected to enhance liquidity and support future upstream investments.
Commenting on the results, the Group Chief Executive, Wale Tinubu, described 2025 as a landmark year in the company’s evolution following the successful integration of the NAOC Joint Venture assets.
He said the completion of the integration phase enabled the company to shift its focus to operational excellence, operatorship and value creation across its expanded portfolio.
According to him, the company’s stronger production performance was driven by enhanced asset integrity, improved security across operating areas and better operational efficiency.
Tinubu noted that one of the year’s biggest milestones was the successful completion and start-up of the Obiafu-41 gas-condensate well, the first development well operated by Oando after assuming operatorship of the assets.
He said the achievement demonstrated that indigenous operators possess the technical capability to execute complex upstream projects safely and efficiently while creating long-term value from Nigeria’s strategic energy assets.
Beyond upstream operations, Tinubu said the company deliberately repositioned its trading business by reducing exposure to lower-margin gasoline imports and increasing participation in higher-margin crude oil and gas trading.
He explained that the strategy, supported by structured offtake and financing arrangements, improved liquidity, strengthened cash generation and enhanced the resilience of the business.
According to him, disciplined capital allocation, better working capital management and targeted balance sheet optimisation also contributed significantly to the company’s stronger financial position.
“With operational control firmly embedded, a strong reserves base, and improving financial flexibility, we are well-positioned to build on the momentum achieved in 2025 and enter 2026 from a position of strength,” Tinubu said.
Looking ahead, Oando projected average production of between 40,000 and 50,000 barrels of oil equivalent per day in 2026, comprising 12,000 to 15,000 barrels of oil per day and 160 to 200 million standard cubic feet of gas per day.
The company plans to drill seven wells in OMLs 60 to 63 while investing between $90 million and $100 million in high-impact, short-cycle upstream projects.
It also expects crude trading volumes to increase to between 30 million and 35 million barrels during the year as it continues to optimise its portfolio.
In line with its energy transition strategy, Oando said it would expand its clean energy initiatives through the deployment of 11 additional electric buses, reinforcing its commitment to sustainable energy development alongside its core oil and gas business.
The company said its strengthened operational platform, improved liquidity position and disciplined capital management provide a solid foundation for delivering sustainable long-term value to shareholders while supporting Africa’s growing energy needs.
