By SCM Staff Writer I Thursday, Oct.30, 2025
LAGOS – Nigerian indigenous energy group Oando PLC has reported a significant jump in profitability for the first nine months of 2025, driven by a strategic pivot toward upstream operations following its acquisition of NAOC’s assets last year.
The company, listed on both the Nigerian and Johannesburg stock exchanges, announced an unaudited Profit After Tax (PAT) of \text{N}210 billion for the nine months ended September 30, 2025.
This marks a dramatic 164% increase from the \text{N}76 billion PAT recorded in the same period of 2024.
Group Chief Executive Wale Tinubu, CON, credited the performance to the full consolidation and operatorship of the former Nigerian Agip Oil Company (NAOC) assets. “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 stated.
Upstream Gains Offset Downstream Shifts
The core driver of the profit surge was a substantial increase in production, which averaged 38,121 barrels of oil equivalent per day (boepd), up 59% year-on-year.
This aligns with the company’s full-year guidance of circa 40,000 boepd. Key operational gains included the revamp of its NGL processing plant, which delivered 82% operational uptime.
However, the period also saw a notable impact on the Group’s top line and margins from shifts in the Nigerian refined-product market.
Group revenue declined by 20% year-on-year, falling to \text{N}2.5 trillion from \text{N}3.2 trillion in 2024. Oando attributed this primarily to a reduction in gasoline imports following the ramp-up of the Dangote Refinery.
Gross profit stood at \text{N}113 billion, representing a 42% decline, reflecting the evolving segment mix.
Despite the revenue contraction, the trading subsidiary, a traditional revenue powerhouse, lifted 21 crude cargoes (19.8 MMbbl), up from 15 cargoes (16.7 MMbbl) in 2024, as the division rebalanced its portfolio toward higher-margin crude and gas trading.
Strategic Expansion and Financial Strengthening
To sustain this momentum, Oando upsized its Reserve-Based Lending (RBL 2) facility to 375 million to support the development of its 1 billion barrels of oil equivalent (boe) upstream portfolio.
In a push for international growth, the company was awarded operatorship of Block KON 13 in Angola, marking its entry into the Kwanza Basin, and was selected as the preferred bidder for the Guaracara Refinery in Trinidad & Tobago, signaling an entry into the Caribbean downstream market.
Oando also advanced its diversification into clean energy, progressing development of a 1.2GW solar PV assembly plant and securing land for a 2,750-ton-per-month PET recycling facility.
The company also completed the first tranche of its share distribution programme, delivering a 5.33% dividend yield to shareholders—its first direct payout in years. Capital expenditure is projected at $120–130 million for the full year, focused on drilling and infrastructure.
