Oando reports N204.8 billion profit as higher oil and gas production strengthens cash flow and supports ambitious 2026 growth plans.
Oando Plc has reported a Profit After Tax (PAT) of N204.8 billion for the financial year ended December 31, 2025, as the indigenous energy company ramped up crude oil and gas production following the integration of the Nigerian Agip Oil Company (NAOC) Joint Venture assets.
The company also generated N258.3 billion in operating cash during the period, while average daily production rose by 32 per cent to 32,482 barrels of oil equivalent per day (boepd), driven by stronger output across crude oil, gas and Natural Gas Liquids (NGLs).
In its audited 2025 financial results released on Monday, Oando stated that the year marked a transition from acquisition-led expansion to operational execution and balance sheet optimisation, following the first full-year contribution from the NAOC Joint Venture assets.
Besides, the company disclosed that it closed the year with N422.9 billion in cash and cash equivalents, representing a 172 per cent increase over the 2024 figure, while also strengthening its liquidity through the expansion of its $375 million Reserve-Based Lending (RBL2) facility.
Operationally, crude trading volumes increased by 24 per cent to 25.7 million barrels, crude oil production rose by 36 per cent, gas production grew by 24 per cent, while NGL production surged by 715 per cent following upgrades to its gas processing infrastructure.
Oando said it also completed and brought onstream the Obiafu-44 gas-condensate well, its first operated development well since assuming operatorship of the assets, while recording zero fatalities, zero Lost-Time Injuries (LTIs) and a Total Recordable Incident Rate (TRIR) of 0.05.
Commenting on the performance, Group Chief Executive, Oando Plc, Wale Tinubu, said during the year under review, the company strengthened asset integrity, enhanced security across its operating areas, and improved uptime, resulting in a 32 per cent year-on-year increase in production to 32,482 boepdnet.
“FY 2025 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.
“During the year, we strengthened asset integrity, enhanced security across our operating areas, and improved uptime, resulting in a 32 per cent year-on-year increase in production to 32,482 boepd net to Oando. This performance was driven by stronger output across crude oil, gas, and NGLs, improved operational reliability, and the successful stabilisation of our expanded asset base,” the Oando CEO stated.
The company attributed the upstream performance to improved facility uptime, enhanced flow assurance, restoration of previously shut-in wells and targeted infrastructure upgrades across its operated assets.
It explained that beyond higher crude oil and gas production, the successful revamp of its NGL processing plant significantly improved recovery efficiency, leading to the 715 per cent jump in NGL output, while the completion of the Obiafu-44 gas-condensate well demonstrated its capacity to execute complex development projects safely after assuming operatorship.
Oando added that its trading division increased crude trading volumes by 24 per cent to 25.7 million barrels despite changing domestic market conditions, noting that it reduced exposure to premium motor spirit (PMS) imports while increasing participation in higher-margin crude oil and gas trading opportunities.
According to the company, the performance reflects the growing capacity of indigenous operators to acquire, integrate and optimise assets divested by international oil companies.
It noted that alongside the performances of Seplat Energy and AradelHoldings during the year, the results point to a new phase for Nigeria’s upstream industry, with indigenous companies increasingly creating long-term value from strategic acquisitions.
Looking ahead, Tinubu said the company was entering 2026 from a position of strength, backed by improved operational control, a stronger reserves base and enhanced financial flexibility.
“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. Our focus remains on executing our development programme, growing production, strengthening cash generation, prudent capital allocation, and delivering sustainable long-term value for our shareholders.”
The company projected that production will rise to between 40,000 and 50,000 boepd in 2026, supported by development activities across Oil Mining Leases (OMLs) 60 to 63, continued production optimisation and planned capital expenditure of between $90 million and $100 million.
It stated that it also expects crude trading volumes to increase to between 30 million and 35 million barrels during the year, while advancing its clean energy initiatives through the deployment of additional electric buses and the expansion of its recycling and gas-to-power projects.
Oando Plc, one of Africa’s leading indigenous energy solutions providers, is listed on the Nigerian Exchange Limited (NGX) and Johannesburg Stock Exchange (JSE).
