LAGOS/Nigeria: Oando Plc has announced a strong financial and operational performance for the 2025 financial year, reporting a profit after tax of ₦204.8 billion alongside a significant rise in oil and gas production, as the indigenous energy company shifts its attention from major acquisitions to improving operational efficiency and long-term growth.
The company, listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), disclosed that its average daily production rose by 32 per cent to 32,482 barrels of oil equivalent per day (boepd), driven by improved output across crude oil, natural gas and natural gas liquids.
According to its audited financial statements for the year ended December 31, 2025, the company described the period as a turning point following the full integration of the Nigerian Agip Oil Company (NAOC) Joint Venture assets into its operations. The focus during the year, it noted, shifted towards strengthening asset performance, enhancing operational stability and improving its financial position.
Oando also reported robust cash generation during the period, with cash from operating activities reaching ₦258.3 billion. Cash and cash equivalents closed the year at ₦422.9 billion, representing a 172 per cent increase over the previous year. The company further expanded its financial capacity by increasing its US$375 million Reserve-Based Lending facility.
Operational figures released by the company showed crude oil production increased by 36 per cent, while gas production rose by 24 per cent. Production of natural gas liquids recorded the highest growth, surging by 715 per cent following improvements to gas processing infrastructure.
The company also completed and commenced production from the Obiafu-44 gas-condensate well, marking its first operated development well since assuming operatorship of the acquired assets. During the year under review, it maintained a strong safety record with no fatalities, no Lost-Time Injuries (LTIs) and a Total Recordable Incident Rate (TRIR) of 0.05.
Speaking on the company’s performance, Group Chief Executive, Wale Tinubu, said the 2025 financial year represented the first full year of operating the former NAOC Joint Venture assets, describing it as a significant milestone in Oando’s evolution.
He explained that after successfully integrating the assets, the company concentrated on improving operational excellence, enhancing asset integrity, strengthening security across production areas and increasing facility reliability, all of which contributed to higher production volumes.
Tinubu noted that stronger output across crude oil, gas and natural gas liquids reflected improved operational reliability and successful management of the expanded asset portfolio.
The upstream business, according to the company, benefited from better facility uptime, restoration of previously inactive wells, enhanced flow assurance and targeted infrastructure upgrades. It added that the rehabilitation of its natural gas liquids processing facility significantly improved recovery efficiency and contributed to the sharp increase in NGL production.
In its trading business, Oando reported a 24 per cent increase in crude trading volumes to 25.7 million barrels despite changes within the domestic energy market. The company said it reduced reliance on premium motor spirit imports while increasing participation in crude oil and gas trading activities with stronger commercial returns.
Industry observers say Oando’s latest performance reflects the growing capacity of indigenous energy companies to successfully manage oil assets acquired from international operators.
The development follows similar performances recorded by other major indigenous players after completing strategic acquisitions. Seplat Energy reported stronger revenue and production following the integration of Mobil Producing Nigeria Unlimited assets, while Aradel Holdings also posted revenue growth supported by increased investments in key upstream ventures. Analysts believe the trend signals increasing confidence in the ability of Nigerian-owned companies to unlock greater value from assets previously operated by multinational oil firms.
Looking ahead, Tinubu expressed confidence that Oando is entering 2026 from a stronger position, citing improved operational control, a healthier reserve base and greater financial flexibility.
He said the company’s priorities would include expanding production, strengthening cash generation, maintaining disciplined capital investment and delivering sustainable returns to shareholders.
For 2026, Oando projects average daily production of between 40,000 and 50,000 barrels of oil equivalent. The company plans to support this target through development activities across Oil Mining Leases (OMLs) 60 to 63 and capital expenditure estimated at between US$90 million and US$100 million.
It also expects crude trading volumes to increase to between 30 million and 35 million barrels during the year while continuing investments in cleaner energy solutions, including additional electric buses, recycling initiatives and gas-to-power projects.
The company said its growth plans align with global industry expectations that investment in natural gas and upstream energy infrastructure will remain resilient as countries continue to prioritise energy security and diversify energy sources. Oando maintained that its expanded asset portfolio and integrated business model position it to sustain growth and strengthen its role within Africa’s evolving energy sector.
