Oando Plc recorded a profit after tax of N204.8 billion in the 2025 financial year, buoyed by higher oil and gas production, stronger operational performance and the successful integration of the Nigerian Agip Oil Company (NAOC) Joint Venture assets.
The indigenous energy company, listed on both the Nigerian Exchange Limited (NGX) and the Johannesburg Stock Exchange (JSE), disclosed the performance in its audited financial results for the year ended December 31, 2025, highlighting a 32 per cent increase in average daily production to 32,482 barrels of oil equivalent per day (boepd).
The company attributed the improved performance to enhanced asset reliability, increased facility uptime, restoration of previously shut-in wells and infrastructure upgrades carried out across its upstream operations.
Commenting on the results, Group Chief Executive, Wale Tinubu, described 2025 as a defining year for the company following the completion of the integration of the NAOC Joint Venture assets.
He said: "FY2025 marked our first full year of operational execution following the acquisition of the NAOC Joint Venture assets and represents an important milestone in Oando's evolution. Having successfully completed the integration phase, our focus shifted to operatorship, operational excellence and value realisation across the enlarged portfolio."
According to him, the company strengthened asset integrity, improved security across its operating areas and enhanced facility uptime, leading to the significant rise in production.
Financial highlights showed that Oando generated N258.3 billion in cash from operations during the year, while cash and cash equivalents rose by 172 per cent year-on-year to N422.9 billion. The company also expanded its $375 million Reserve-Based Lending facility to enhance liquidity and support future investments.
Operationally, crude oil production increased by 36 per cent, gas output rose by 24 per cent, while natural gas liquids (NGL) production surged by 715 per cent following upgrades to gas processing infrastructure. Crude trading volumes also climbed by 24 per cent to 25.7 million barrels.
The company also achieved a key operational milestone with the completion and commencement of production from the Obiafu-44 gas-condensate well, its first operated development well since assuming operatorship of the acquired assets.
Oando maintained a strong safety record during the year, reporting zero fatalities, zero lost-time injuries and a Total Recordable Incident Rate of 0.05.
In its trading operations, the company said it reduced reliance on premium motor spirit (PMS) imports while increasing its participation in crude oil and natural gas trading to improve commercial returns.
The company noted that its performance reflects the increasing role of indigenous operators in Nigeria's upstream oil and gas industry following the divestment of onshore assets by international oil companies.
It pointed to similar growth recorded by other indigenous producers, with Seplat Energy reporting revenue of $2.726 billion and average production of 131,506 boepd after integrating Mobil Producing Nigeria Unlimited assets, while Aradel Holdings posted a 20 per cent increase in revenue to N699.4 billion following the expansion of its interests in ND Western and Renaissance Africa Energy Company.
Looking ahead, Oando said it expects average production to rise to between 40,000 and 50,000 boepd in 2026, driven by development programmes across Oil Mining Leases (OMLs) 60, 61, 62 and 63.
The company plans to invest between $90 million and $100 million in capital expenditure during the year to support production growth and asset optimisation.
It also projects crude trading volumes of between 30 million and 35 million barrels while accelerating its clean energy strategy through the deployment of additional electric buses and investments in recycling and gas-to-power projects.
Tinubu expressed confidence that the company is entering 2026 on a stronger footing.
"With operational control firmly embedded, a strong reserves base and improving financial flexibility, we are well-positioned to build on the momentum achieved in 2025 and enter 2026 from a position of strength," he said.
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