Oando Plc reported a profit after tax of ₦204.8 billion for the financial year ended December 31, 2025, as higher crude oil and gas production, stronger operating cash flow and improved liquidity helped offset weaker revenue resulting from changes in its trading strategy.
The indigenous energy company recorded ₦3.18 trillion in revenue during the year, representing a 22 percent decline from ₦4.09 trillion reported in 2024.
The decline reflected Oando’s deliberate decision to reduce exposure to lower-margin premium motor spirit (PMS) importation while increasing its focus on crude oil and natural gas trading.
Despite the lower revenue, the Group maintained profitability, posting earnings after tax of ₦204.8 billion, while earnings per share improved to ₦23 from ₦18 recorded in the previous year.
Operating profit stood at ₦240.9 billion, although lower than the prior year’s figure, largely because 2024 included a significant one-off gain related to the acquisition of the Nigerian Agip Oil Company (NAOC) joint venture assets.
Operational performance strengthened considerably during the year. Average daily production increased 32 percent year-on-year to 32,482 barrels of oil equivalent per day (boepd) following the first full-year contribution from the acquired NAOC assets.
Crude oil production rose to 11,269 barrels per day, while natural gas output climbed to 19,982 boepd, supported by improved asset reliability, restored wells and enhanced production efficiency across key operating fields.
The company also reported a substantial improvement in cash generation. Cash generated from operations reached ₦258.3 billion, compared with a significant outflow in the previous year, while cash and cash equivalents increased to ₦422.9 billion as management strengthened working capital controls and improved receivables recovery.
During the year, Oando invested ₦135 billion in capital expenditure, directing most of the spending toward upstream development, production optimisation and infrastructure improvements.
The company also expanded its reserve-based lending facility to $375 million, enhancing liquidity to support future production growth and field development activities.
The Group’s proved and probable (2P) reserves stood at 928 million barrels of oil equivalent, providing a long-term production base for future operations.
Although reserves declined slightly from the previous year because of production depletion and updated technical assessments, management said the portfolio remains predominantly gas-weighted and well positioned to benefit from Nigeria’s growing gas and power markets.
Oando also continued to diversify beyond conventional oil and gas operations. Its clean energy subsidiary expanded electric mobility initiatives, operating electric buses that completed more than 4,300 trips and transported over 243,000 passengers during the year while advancing recycling, renewable energy and gas-to-power projects.
The mining business also progressed exploration activities targeting lithium, tin, gold and bitumen assets.
Looking ahead, the company expects production to increase to between 40,000 and 50,000 boepd in 2026 as it executes a development programme involving seven wells across OMLs 60–63.
Capital expenditure is projected at $90 million to $100 million, while crude trading volumes are expected to rise to 30–35 million barrels as Oando continues to optimise its trading portfolio and strengthen cash generation.
Commenting on the results, Group Chief Executive Wale Tinubu said 2025 marked the company’s first full year of operational execution following the integration of the NAOC joint venture assets, adding that Oando’s priorities for 2026 include increasing production, enhancing operational efficiency, strengthening the balance sheet and delivering sustainable long-term value for shareholders.