Key highlights
…Revenue of N3.2 trillion (2024: N4.1 trillion)
…Profit after tax of N204.8 billion, supported by impairment reversals and tax credits
…Cash generated from operations of N258.3 billion
…Cash and cash equivalents increased to ₦422.9 billion
…Capex of N135.0 billion in FY 2025, focused on high-impact upstream activity
MON JULY 06 2026-theGBJournal| Oando Plc, in its full-Year 2025 Audited results released today, reported that 2025 marked a transformational year in its evolution, with the first full-year contribution from the acquired NAOC Joint Venture assets enabling the company to transition from an acquisition-driven growth strategy to one centred on operational excellence, production optimisation and balance sheet strengthening.
The integrated energy group increased average daily production by 32% year-on-year to 32,482 barrels of oil equivalent per day (boepd), driven by improved operational reliability, higher uptime across its core producing assets and stronger output from crude oil, natural gas and natural gas liquids.
The company said operational improvements followed the successful stabilisation of its expanded upstream portfolio after assuming operatorship of the former Nigerian Agip Oil Company (NAOC) Joint Venture assets.
Operational performance was complemented by one of the industry’s strongest safety records, with zero fatalities, zero lost-time injuries and a Total Recordable Incident Rate (TRIR) of just 0.05 during the year.
Despite production gains, proved and probable (2P) reserves moderated slightly to 928 million barrels of oil equivalent from 950 million barrels a year earlier, leaving Oando with a substantial reserve base capable of supporting long-term production growth.
The trading division also recorded strong operational expansion, with crude trading volumes rising 24 percent to 25.7 million barrels as the company deliberately repositioned its portfolio away from low-margin Premium Motor Spirit (PMS) imports toward higher-margin crude oil and gas transactions.
That strategic repositioning weighed on top-line revenue, which declined to N3.2 trillion from N4.1 trillion in 2024, reflecting management’s deliberate withdrawal from lower-margin fuel import activities rather than weaker business fundamentals.
Ondo’s profitability remained resilient in the period under review, however, with profit after tax reaching N204.8 billion, supported by impairment reversals and tax credits alongside improved operational performance.
The operational improvements translated into stronger cash generation, with cash generated from operations rising to N258.3 billion, reflecting improved working capital management and stronger conversion of earnings into cash.
Closing cash and cash equivalents increased to N422.9 billion, providing the company with enhanced financial flexibility to support future investments while maintaining liquidity.
Capital expenditure during the year totalled N135 billion, primarily directed toward high-impact upstream activities aimed at expanding production from the enlarged asset portfolio.
Financial flexibility was further strengthened through the expansion of Oando’s Reserve-Based Lending (RBL2) facility to $375 million, led by Afreximbank, providing additional funding capacity to finance upstream growth while supporting broader capital structure optimisation initiatives.
Alongside its hydrocarbon business, Oando continued advancing its energy transition strategy through investments in electric mobility, recycling projects and gas-to-power opportunities.
Group Chief Executive Officer Wale Tinubu described 2025 as the company’s first full year of operational execution following the NAOC acquisition, saying management successfully shifted its focus from integration to operatorship, operational excellence and value creation across the expanded asset portfolio.
According to Tinubu, ”we strengthened asset integrity, enhanced security across our operating areas, and improved uptime, resulting in a 32% year-on-year increase in production to 32,482 boepd net to Oando.”
”This performance” he adds, ”was driven by stronger output across crude oil, gas, and NGLs, improved operational reliability, and the successful stabilisation of our expanded asset base.”
A key highlight of the year for him, was the successful completion and start-up of the Obiafu-44 gas condensate well, the company’s first operated development well following the assumption of operatorship.
”This achievement demonstrates that indigenous operators can safely, efficiently, and responsibly execute complex development programs at scale while creating long-term value from strategic national assets.”
He added that Oando’s deliberate shift toward higher-margin crude and gas trading, supported by structured offtake and financing arrangements, significantly strengthened liquidity, improved cash generation and enhanced the resilience of the trading business.
Tinubu also said disciplined capital allocation, improved working capital management and ongoing balance sheet optimisation strengthened the company’s financial position, leaving it well placed to finance future expansion.
Looking ahead, Oando expects production to rise significantly in 2026, guiding for average output of 40,000 to 50,000 boepd, including 12,000–15,000 barrels of oil per day and 160–200 million standard cubic feet of gas per day.
The company plans to drill seven development wells across OMLs 60–63, while capital expenditure is expected to range between $90 million and $100 million, targeting high-impact, short-cycle upstream projects designed to accelerate production growth.
Its trading business is forecast to increase crude trading volumes to between 30 million and 35 million barrels, reflecting continued optimisation of its portfolio toward higher-margin opportunities.
Beyond hydrocarbons, Oando intends to deepen its clean energy investments through the deployment of 11 additional electric buses, reinforcing its longer-term strategy of building a more diversified and lower-carbon energy business.
Management said that with operatorship now firmly established, a substantial reserves base, improving liquidity and stronger financial flexibility, the company enters 2026 from a position of strength, with priorities centred on expanding production, strengthening cash generation, maintaining disciplined capital allocation and delivering sustainable long-term shareholder value.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
