Oando Plc has reported a 63 percent increase in production volumes for the first half (H1) of 2025 as the consolidation of Nigerian Agip Oil Company (NAOC) assets, improved security, and infrastructure upgrades start paying off.
Group Chief Executive Wale Tinubu said the growth in upstream output offset weakness in the trading segment and underlined the Group’s strategy of prioritizing production efficiency and asset optimization.
“In H1 2025, we advanced our growth agenda in our upstream division, the primary driver of the Group’s performance, by achieving a 63% year-on-year increase in production volumes. This was driven by the successful consolidation of NAOC’s assets, early gains from our optimization programme and our assumption of operatorship,” Tinubu said.
Financial Performance
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Revenue fell 15 percent year-on-year to ₦1.72 trillion from ₦2.03 trillion, reflecting weaker realised prices and reduced trading activity.
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Gross profit declined 28 percent to ₦59 billion from ₦82 billion in H1 2024.
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Capital expenditure increased to ₦44 billion from ₦18 billion, driven by infrastructure upgrades, production optimisation, and the integration of NAOC assets.
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All regulatory approvals for the planned distribution process have been secured, with the first tranche scheduled for completion on or before August 8, 2025.
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Ms. Ayotola Jagun was appointed Executive Director effective May 20, 2025, pending shareholder ratification at the upcoming AGM.
Upstream Operations
Average daily production rose to 37,012 barrels of oil equivalent per day (boepd), up from 22,710 boepd in H1 2024.
Crude oil volumes increased 77 percent to 10,479 barrels per day, while gas production grew 54 percent to 25,399 boepd.
Natural gas liquids output surged 375 percent to 1,135 barrels per day after the revamp of the NGL processing plant.
Oando also secured operatorship of Block KON 13 in Angola’s Kwanza Basin, expanding its African upstream portfolio. The company upsized its RBL 2 facility to $375 million to accelerate the development of its 1 billion boe portfolio.
Trading Segment
The Trading Division executed 14 crude oil cargos totaling 12.9 million barrels, up from 10 cargos in H1 2024. No PMS cargos were traded due to reduced demand following the removal of fuel subsidies and increased supply from local refineries.
In a significant move to expand market presence, Oando was selected as the preferred bidder for the Guaracara Refinery in Trinidad & Tobago, establishing a foothold in the Caribbean downstream market.
Clean Energy Initiatives
The Group recorded 113,864 electric vehicle rides through its e-bus fleet in H1 2025, avoiding 84,814 kilograms of CO₂ emissions. Development of a 1.2GW solar PV module assembly plant progressed, with land secured and financial modeling completed.
A PET recycling project with a planned capacity of 2,750 tons per month and a 6MW geothermal pilot project also advanced.
The company further published Nigeria’s National Wind Resource Capacity Report, mapping wind energy potential across the country to support future renewable investments.
Mining and Infrastructure
Oando Mining advanced its portfolio with joint development agreements for lithium and gold in Kebbi State, supported by positive assay results.
Early-stage exploration activities continued in Kaduna, Kwara, and Ondo States, targeting lithium, gold, tin, and bitumen resources. The Group aims to make an investment decision on at least one mineral asset by Q3 2025.
Outlook
For the second half of 2025, Oando maintained its full-year production guidance of 30,000–40,000 boepd. Planned capital expenditure of $250–270 million will be allocated to drilling, infrastructure, and ESG projects.
The Group also intends to deploy 50 electric buses and advance its solar PV module assembly plant toward a final investment decision.
“With a clear execution roadmap, we remain committed to delivering sustained value to our shareholders while advancing our diversification and energy transition agenda,” Tinubu added.