Oando PLC has reported a 10% increase in profit after tax to ₦241.3 billion for the financial year ended 31 December 2025, driven largely by a sharp rise in upstream oil and gas production.
In its unaudited full-year results, the energy group said upstream production increased by 32% year on year to an average of 32,482 barrels of oil equivalent per day (boepd). The growth was underpinned by a 36% increase in crude oil production to 11,269 barrels per day (bopd), a 24% rise in gas output to 19,982 boepd, and a 715% surge in natural gas liquids (NGL) production to 1,231 barrels per day.
The company attributed the strong production performance to the full-year consolidation of its Nigerian Agip Oil Company (NAOC) joint venture interest, improved operational uptime following the reactivation of previously constrained wells, and targeted infrastructure upgrades across its operated assets.
Profit after tax rose to ₦241.3 billion from ₦220.1 billion in 2024, supported by higher upstream output, impairment reversals, and favourable tax adjustments. However, revenue declined by 21% to ₦3.21 trillion from ₦4.09 trillion a year earlier, while gross profit fell sharply by 82% to ₦27.8 billion, compared with ₦155.9 billion in 2024.
Oando said the decline in revenue and gross profit reflected a deliberate shift in its revenue mix, as the company scaled back high-volume, lower-margin refined product trading in favour of higher-margin crude oil and gas trading, as well as the impact of non-cash items.
Commenting on the results, Group Chief Executive of Oando PLC, Wale Tinubu, CON, said, “2025 was a year of relentless execution as we successfully transitioned from the integration of the NAOC Joint Venture into operational delivery.
“Over the year under review, we reinforced asset integrity, strengthened security across our operating areas, and materially improved uptime, delivering a 32% year-on-year increase in total production. Operated Joint Venture production averaged approximately 80,545 boepd, translating to 32,482 boepd net to Oando, alongside a 30% increase in crude oil liftings and a 59% increase in gas sales volumes.
“Building on this foundation, we launched our development drilling programme with the successful completion and start-up of the Obiafu-44 gas-condensate well. This well represents the first execution milestone within a phased 36-well development programme, designed to restore field deliverability, unlock incremental production and advance the Group’s medium-term growth objectives.”
Within its trading operations, Oando recorded a 42% year-on-year increase in crude oil cargoes traded, rising to 26 cargoes, equivalent to 29.4 million barrels, compared with 21 cargoes or 20.7 million barrels in 2024. During the year, the company deliberately paused premium motor spirit (PMS) trading in response to structural changes in Nigeria’s domestic downstream market.
While the move resulted in a short-term reduction in reported earnings, Oando said it was aligned with its longer-term focus on margin quality and capital efficiency.
“In our downstream trading business, we responded decisively to evolving market dynamics by deliberately rebalancing our portfolio away from gasoline importation toward higher-margin crude and gas opportunities. We expanded global exports and leveraged structured offtake and pre-export financing arrangements to support liquidity, cash-flow resilience, and effective production monetization for our clients,” Tinubu added.
The company said the 2025 financial year marked a clear transition from post-acquisition asset integration to full operatorship, as evidenced by improved upstream performance. Capital expenditure increased significantly compared with 2024, reflecting higher investment in upstream development, facility integrity and infrastructure optimisation.
Oando described the increased spending as strategic, noting that sustained production growth and revenue expansion depend on these foundational investments being in place, and that the outlay positions the group for future growth.
As part of its group-wide optimisation strategy, the company achieved $17.7 million in cost savings through contract optimisation across key operating inputs. Retained earnings also returned to a positive position, reflecting non-cash intra-group balance sheet realignments linked to ongoing capital restructuring.
Looking ahead, Tinubu said, “With operational control firmly embedded and the foundations for growth clearly established, our focus is on the diligent execution of our development programme to accelerate production growth, strengthen cash generation and enhance long-term value creation. As we enter 2026, we will continue to allocate capital prudently, deepen operational resilience and build on the momentum achieved.”
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