FX Revaluation Gains, Higher Volumes Boost Oando’s Q1 Revenue To N933bn

Oando Plc has reported a revenue growth of N933 billion in the first quarter ended March 31, 2025, supported by higher upstream volumes and FX revaluation gains.

The Company’s Q1 results released on the Nigerian Exchange (NGX) and Johannesburg Stock Exchange showed that gross profit increased by 172 per cent to N85 billion from N31 billion in Q1, 2024, reflecting stronger exploration and production (E&P) margins.

Capital expenditure rose to N45 billion as against N9 billion in Q1 2024, driven by asset integration and production optimisation initiatives following the NAOC acquisition.

Achieved average daily production of 37,595 boepd (within guidance), up 72 per cent year-on-year, driven by the full consolidation of NAOC assets and well reactivations.

Crude oil production rose 132 per cent to 11,369 bopd, gas volumes grew 56 per cent to 25,185 boepd, and NGL production increased 30 per cent to 1,040 bpd.

The Company reported profit after tax of N113.1 billion in Q1 2025 from N59.3 billion in Q1 2024, reflecting stronger underlying performance for the E&P segment and the tax-related effects described above; while earnings per share (EPS) increased to N9, compared to N5 in Q1 2024.

Speaking on the results, Group chief executive, Oando Plc, Wale Tinubu said, “Q1 2025 marked a strong start to the year for us, with a 72 per cent year-on-year increase in production volumes as a result of the successful integration of the NAOC assets into our portfolio, improved asset reliability and the reactivation of shut-in wells, reflecting early wins from our focus on operational efficiency and disciplined execution.

“Beyond Nigeria, we have expanded our regional presence with our entry into Angola’s Kwanza Basin marking a major milestone in scaling our upstream footprint across Africa.”

Tinubu noted that “being named preferred bidder for the Guaracara Refinery in Trinidad and Tobago demonstrates the strength of our integrated business model, our growing role in the Afro-Caribbean landscape, and a reflection of our evolution into a more geographically diversified energy company.”

Following a transformative 2024, Oando added “our priority is to maximize the value of our expanded upstream portfolio through targeted infrastructure upgrades, rigless well interventions and an extensive drilling programme in the second half of the year. These activities are now enabled by the working capital we have secured, giving us financial flexibility to accelerate execution. We are also taking decisive action to restructure our balance sheet towards restoring financial resilience.

“With a full-year contribution from the NAOC assets, more diversified trading operations and an optimized balance sheet, we are confident in our ability to generate stronger cash flows, reduce leverage, and deliver sustainable value to our shareholders.”