Oando Posts N204.8bn Profit

Oando PLC has reported a Profit After Tax of N204.8 billion and cash generated from operations of N258.3 billion in its audited results for the year ended 31 December 2025, released on Tuesday

Average daily production rose 32 per cent year‑on‑year to 32,482 barrels of oil equivalent per day (boepd). The company attributed the increase partly to the first full-year contribution from the Nigerian Agip Oil Company (NAOC) Joint Venture assets following its acquisition, and to a shift in emphasis from acquisitions to operational execution and balance sheet optimisation.

Cash and cash equivalents at year’s end were N422.9 billion, up 172 per cent from 2024. Oando said it also upsized its Reserve-Based Lending facility, originally sized at US$375 million.

Crude trading volumes: 25.7 million barrels, up 24 per cent.

Crude oil production: up 36 per cent.

Gas production: up 24 per cent.

Natural gas liquids (NGL) production: up 715 per cent, following upgrades to gas processing infrastructure.

The company reported the Obiafu-44 gas‑condensate well was completed and brought onstream. Safety figures reported were zero fatalities, zero lost-time injuries and a total recordable incident rate (TRIR) of 0.05.

In commentary accompanying the results, group chief executive, Wale Tinubu said the business completed an integration phase and shifted focus to operatorship and operational reliability following the NAOC JV transaction, noting improved asset uptime and stronger output across hydrocarbons.

Oando said upstream gains were supported by facility uptime improvements, restoration of previously shut‑in wells and infrastructure upgrades. The company cited a revamp of an NGL processing plant as a driver of higher NGL recovery and production. The trading division increased crude trading volumes while reducing exposure to premium motor spirit (PMS) imports.

Analysts and industry observers have pointed to similar developments among local operators in 2025. The report referenced peers’ results — including Seplat Energy’s reported revenue and production and Aradel Holdings’ revenue growth — as context for activity in Nigeria’s indigenous upstream sector following asset divestments by international oil companies.

Guidance and plans

Oando expects production of between 40,000 and 50,000 boepd in 2026, supported by development activity on OMLs 60–63, ongoing production optimisation and planned capital expenditure of US$90–100 million. The company anticipates trading volumes rising to 30–35 million barrels and said it will continue work on its gas‑power and recycling projects and other low‑carbon initiatives, without providing detailed timelines.

Market and industry context

The company’s outlook referenced broader industry forecasts that highlight continued investment in natural gas and upstream infrastructure as governments and firms prioritise energy security. Oando said its enlarged upstream portfolio and financing arrangements aim to support planned development and cash‑generation objectives.

Notes

Financial figures are as reported by Oando in its audited FY2025 results.

Production and operational figures are company disclosures and have not been independently verified in this report.