Oando Profit Rises 10% as Upstream Production Surges 32% in 2025

Oando PLC has reported a 10 per cent increase in profit after tax to ₦241.3 billion for the year ended 31 December 2025, driven by strong growth in upstream production despite a decline in overall revenue.

In its unaudited full-year results, the indigenous energy company recorded a 32 per cent year-on-year increase in upstream production, averaging 32,482 barrels of oil equivalent per day (boepd). Crude oil production rose by 36 per cent to 11,269 barrels per day, gas production increased by 24 per cent to 19,982 boepd, while natural gas liquids output surged by 715 per cent to 1,231 barrels per day.

Oando attributed the production growth to the full-year consolidation of its Nigerian Agip Oil Company (NAOC) Joint Venture interest, improved operational uptime from reactivated wells, and targeted infrastructure upgrades across its operated assets.

Profit growth was supported by higher upstream output, impairment reversals, and favourable tax adjustments. However, revenue declined by 21 per cent to ₦3.21 trillion from ₦4.09 trillion in 2024, while gross profit fell sharply to ₦27.8 billion from ₦155.9 billion, reflecting a strategic shift away from high-volume, low-margin refined product trading towards higher-margin crude oil and gas transactions.

Commenting on the results, Group Chief Executive Officer Wale Tinubu, CON, said 2025 marked the Company’s transition from asset integration to full operational delivery following the NAOC Joint Venture acquisition. 

He said improved asset integrity, enhanced security, and stronger uptime resulted in increased production, with operated Joint Venture output averaging about 80,545 boepd.

During the year, Oando launched its development drilling programme, successfully completing the Obiafu-44 gas-condensate well, the first milestone in a planned 36-well programme aimed at restoring field deliverability and unlocking additional production.

In its trading business, Oando recorded a 42 per cent increase in crude oil cargos traded, rising to 26 cargos totalling 29.4 million barrels. The Company temporarily suspended premium motor spirit trading in response to changes in Nigeria’s downstream market, a move it said would strengthen margin quality and capital efficiency over the long term.

Looking ahead, Mr Tinubu said the Company would focus on executing its development programme, strengthening cash generation, and delivering sustainable long-term value as it enters its next growth phase.