Oando Plc reported a profit after tax of ₦204.8 billion for the financial year ended December 31, 2025, driven by higher crude oil and gas production, stronger operating cash flow, and improved liquidity, despite a 22 percent decline in revenue to ₦3.18 trillion from ₦4.09 trillion in 2024. The drop in revenue was attributed to the company’s strategic shift away from lower-margin premium motor spirit (PMS) importation, as it focused more on crude oil and natural gas trading. This deliberate change in trading strategy allowed Oando to strengthen its core upstream operations while maintaining profitability.
The company’s earnings per share rose to ₦23 from ₦18 in the previous year, reflecting improved financial performance. Operating profit stood at ₦240.9 billion, slightly lower than 2024’s figure, which included a one-off gain from the acquisition of Nigerian Agip Oil Company (NAOC) joint venture assets. However, Oando’s operational performance showed significant improvement, with average daily production increasing 32 percent year-on-year to 32,482 barrels of oil equivalent per day (boepd). This growth was largely due to the first full-year contribution from the acquired NAOC assets.
Crude oil production reached 11,269 barrels per day, while natural gas output climbed to 19,982 boepd, supported by improved asset reliability, restored wells, and enhanced efficiency across key fields. Cash generated from operations surged to ₦258.3 billion, a marked improvement from the previous year’s outflow, as the company strengthened working capital controls and boosted receivables recovery. Cash and cash equivalents rose to ₦422.9 billion, highlighting improved liquidity and financial health.
Oando invested ₦135 billion in capital expenditure during the year, primarily in upstream development, production optimisation, and infrastructure upgrades. The company also expanded its reserve-based lending facility to $375 million to support future production growth and field development. Its proved and probable (2P) reserves stood at 928 million barrels of oil equivalent, with management noting that while reserves declined slightly due to production depletion and technical reassessments, the portfolio remains gas-weighted and well-positioned for Nigeria’s expanding gas and power markets.
Beyond traditional oil and gas, Oando’s clean energy subsidiary advanced electric mobility initiatives, operating electric buses that completed over 4,300 trips and transported more than 243,000 passengers. The company also progressed mining exploration for lithium, tin, gold, and bitumen. Looking ahead, Oando expects production to rise to between 40,000 and 50,000 boepd in 2026, supported by a development programme involving seven wells across OMLs 60–63. Capital expenditure is projected at $90 million to $100 million, with crude trading volumes expected to reach 30–35 million barrels.
Group Chief Executive Wale Tinubu noted that 2025 marked the company’s first full year of operational execution post-NAOC integration, and emphasized that 2026 priorities include increasing production, enhancing efficiency, strengthening the balance sheet, and delivering sustainable value for shareholders. Oando’s strategic focus on gas, clean energy, and diversified operations positions it to play a key role in Nigeria’s evolving energy landscape.
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