Admin I Tuesday, February 03 26
LAGOS — Oando PLC, Nigeria’s largest indigenous energy provider, has reported a 10% increase in full-year profit after tax to ₦241.3 billion ($152 million), as a surge in upstream production successfully cushioned a strategic retreat from the country’s volatile fuel-import market.
The unaudited 2025 results highlight a significant shift in the company’s DNA.
Following the landmark acquisition and integration of the Nigerian Agip Oil Company (NAOC) joint venture, Oando has pivoted toward high-margin exploration and production, moving away from the high-turnover, low-margin business of refined product trading.
The group’s upstream arm delivered a 32% year-on-year increase in production, averaging 32,482 barrels of oil equivalent per day (boepd).
This growth was underpinned by a diversification of output:
Crude Oil: Up 36% to 11,269 bopd.
Natural Gas: Up 24% to 19,982 boepd.
NGLs: A staggering 715% increase to 1,231 bpd.
Wale Tinubu, Group Chief Executive, attributed the performance to “relentless execution” following the NAOC integration.
The company has moved aggressively into its operatorship phase, launching a 36-well development programme aimed at restoring field deliverability. The first milestone, the Obiafu-44 gas-condensate well, has already commenced production.
Trading Rebalancing
While the bottom line improved, top-line revenue fell 21% to ₦3.21 trillion, down from ₦4.09 trillion in 2024. This decline reflects a deliberate pause in Premium Motor Spirit (PMS) trading.
”We responded decisively to evolving market dynamics by rebalancing our portfolio away from gasoline importation,” Mr. Tinubu said.
Instead, the group focused on its crude trading desk, which saw a 42% increase in cargos traded—totaling 29.4 million barrels compared to 20.7 million in the previous year.
Financial Health and Outlook
Despite the revenue dip, the group’s financial resilience showed signs of hardening.
Oando realized $17.7 million in cost savings through contract optimization, and retained earnings returned to a positive position for the first time in recent cycles—a result of non-cash balance sheet realignments and capital restructuring.
The 82% drop in gross profit to ₦27.8 billion underscores the impact of the exit from fuel imports and various non-cash items. However, management maintains that the current posture—focused on asset integrity and infrastructure upgrades—is the necessary foundation for “sustainable, long-term value.”
As Oando enters 2026, the focus remains on the “diligent execution” of its drilling programme to accelerate cash generation and deepen operational resilience in a transitioning Nigerian energy landscape.
