Nigerian energy giant Oando Plc has reported a 32 per cent increase in upstream production for the 2025 financial year, driving revenue to N3.21 trillion, according to its unaudited results released for the period ending 31 December 2025.
The company said average net production to Oando reached 32,482 barrels of oil equivalent per day (boepd). Crude oil output rose 36 per cent to 11,269 barrels per day (bopd), gas production increased 24 per cent to 19,982 boepd, while natural gas liquids (NGLs) recorded a remarkable 715 per cent jump to 1,231 bpd.
Oando attributed the production growth to the full-year consolidation of the NAOC Joint Venture (JV), improved uptime from previously constrained wells, and targeted upgrades across its operated assets. Its trading arm also saw a 42 per cent year-on-year increase in crude cargoes, rising to 26 shipments (29.4 million barrels) in 2025 from 21 cargoes (20.7 million barrels) in 2024.
Despite the production gains, revenue declined 21 per cent from N4.09 trillion in 2024, while gross profit fell 82 per cent to N27.8 billion, down from N155.9 billion the previous year. The company explained that the decline was largely due to a deliberate shift away from lower-margin refined product trading toward higher-margin crude and gas opportunities, as well as non-cash accounting adjustments.
Commenting on the results, Group Chief Executive Wale Tinubu said 2025 was a year of “relentless execution,” as the company transitioned from asset consolidation to operational delivery.
“Through focused operational improvements, we reinforced asset integrity, enhanced security across our operations, and materially increased uptime, delivering a 32 per cent year-on-year growth in total production,” he said.
Tinubu noted that operated Joint Venture production averaged 80,545 boepd, translating to 32,482 boepd net to Oando, alongside a 30 per cent increase in crude liftings and a 59 per cent rise in gas sales volumes.
The company also launched a 36-well development drilling programme, starting with the Obiafu-44 gas-condensate well, aimed at restoring field deliverability and unlocking additional production.
In the downstream trading business, Oando shifted focus from petrol importation to higher-margin crude and gas trading, expanding exports and leveraging structured offtake and pre-export financing arrangements to improve liquidity and cash-flow resilience.
Capital expenditure rose sharply in 2025, reflecting greater investment in upstream development, infrastructure optimisation, and facility integrity. The company said these investments were critical to sustaining production growth and long-term revenue.
As part of cost efficiency measures, Oando realised $17.7 million in savings through contract optimisation across key operating inputs. Retained earnings returned to positive territory, aided by non-cash intra-group adjustments linked to ongoing capital restructuring.
Looking ahead, Tinubu said the company would continue to focus on disciplined execution of its development programme to accelerate production, enhance cash generation, and create long-term shareholder value.
“With operational control firmly embedded and foundations for growth established, 2026 will be about building on this momentum, allocating capital prudently, and strengthening operational resilience across all assets,” he said.
The results underscore Oando’s efforts to leverage its upstream and trading portfolios to drive sustainable growth, even amid market and operational challenges.
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