...upsizes $375 million RBL facility to accelerate upstream growth across 1 billion boe portfolio
Oando PLC, Nigeria’s leading indigenous energy group listed on the Nigerian Exchange and Johannesburg Stock Exchange, has reported unaudited financial results for the nine months ended 30 September 2025, highlighting production growth and disciplined operational execution.
The Group recorded a Profit After Tax (PAT) of ₦210 billion, a 164% increase from ₦76 billion in the same period of 2024. This performance was driven by higher production volumes and improved operational efficiency. Group revenue, however, declined 20% year-on-year to ₦2.5 trillion from ₦3.2 trillion in 2024, largely due to reduced gasoline imports following the ramp-up of the Dangote Refinery, which has significantly reshaped Nigeria’s refined-product market. Gross profit fell 42% to ₦113 billion, reflecting shifts in market dynamics and the Group’s evolving segment mix.
Commenting on the results, Wale Tinubu, CON, Group Chief Executive of Oando PLC, said “In the first nine months of 2025, we consolidated the gains achieved following our acquisition of NAOC’s assets last year. Our assumption of operatorship has been transformational, granting us the agility to act decisively and execute with precision in driving production growth and operational efficiency.”
He added that the Group achieved a 59% year-on-year increase in crude oil and gas production, now averaging 38,121 barrels of oil equivalent per day (boepd), underscoring the impact of the NAOC acquisition and signalling the early unlocking of the substantial value in its reserves.
During the period, Oando reported robust oil and gas output and continued operational gains, demonstrating strong momentum across its upstream operations. To sustain this growth, the company upsized its Reserve-Based Lending (RBL 2) facility to $375 million, enhancing financial flexibility and supporting accelerated development of its 1 billion boe upstream portfolio. Key credit facilities were also renegotiated on more favourable terms, extending repayment periods to free up liquidity for ongoing drilling programmes.
Oando’s group production averaged 38,121 boepd, up 59% year-on-year, in line with full-year guidance. This was driven by the consolidation of its Nigerian Agip Oil Company (NAOC) joint venture interest and improved asset uptime across its operated portfolio. The revamp of its NGL processing plant delivered 82% operational uptime, boosting recovery and reliability across production assets. The Obiafu-44 gas-condensate well was brought onstream in October, while surface facility upgrades helped minimise downtime and optimise flow efficiency.
The company expanded its regional and international presence, securing operatorship of Block KON 13 in Angola, marking its entry into the Kwanza Basin, and being selected as preferred bidder for the Guaracara Refinery in Trinidad & Tobago, signalling a strategic move into the Caribbean downstream market.
On the downstream front, Oando’s trading subsidiary lifted 21 crude cargoes (19.8 MMbbl), up from 15 cargoes (16.7 MMbbl) in the prior-year period, following a strategic pause to rebalance its portfolio towards higher-margin crude and gas trading opportunities.
Analysts suggest that with rising output and new international assets, Oando is well-positioned to consolidate its leadership among Africa’s indigenous oil and gas companies while continuing diversification into clean energy and mining.
In the clean energy segment, Oando advanced electric mobility, solar, and recycling initiatives, progressing a 1.2GW solar PV assembly plant, completing a techno-economic study for a 6MW geothermal pilot, and securing land for a 2,750-ton-per-month PET recycling facility.
Despite softer trading revenues, Oando’s performance reflects strong profitability and upstream growth amid strategic transition. Sector peers such as Aradel Holdings Plc and Seplat Energy Plc reported higher top-line growth during the same period, supported by stable upstream portfolios. Aradel Holdings posted ₦368.1 billion in revenue, up 37.2% year-on-year, and ₦146.4 billion in PAT, while Seplat Energy reported consistent revenue growth and double-digit margins.
During the period, Mrs Folashade Ibidapo-Obe was appointed Chief Compliance Officer and Company Secretary, reinforcing Oando’s governance framework. The company also completed the first tranche of its 1.28 billion-share distribution programme, delivering a 5.33% dividend yield to shareholders, its first direct payout in years.
Looking ahead, Oando maintains full-year production guidance of circa 40,000 boepd, with capital expenditure projected at $120–130 million, focusing on drilling, infrastructure optimisation, and ESG projects.
“As we enter the final quarter of 2025, we remain focused on further strengthening our balance sheet, accelerating production growth, expanding our trading footprint, optimizing our cash flows, and sustaining long-term value creation,” Tinubu concluded.
No comments:
Post a Comment