THUR OCT 30 2025-theGBJournal| Nigerian oil giant Oando on Thursday posted weaker-than-expected 9M 2025 gross profit, following recent strategic acquisition and pressure on its trading business.
Oando posted 42% drop in gross profit to N113 billion (9M 2024: N194 billion), in line with the topline contraction and changing segment mix, missing analysts expectation significantly.
Profit after tax came in slightly better, an increase of 164% to N210 billion (9M 2024: N76bn), driven by stronger production volumes and legacy recoveries.
The result came as the energy major faces fresh pressure on its trading business and refined products volumes, largely due to the company CEO Wale Tinubu said is ”well-deserved and expected success of the Dangote refinery in meeting Nigeria’s import needs.”
”Consequently, our focus had shifted to expanding global crude exports and leveraging structured Pre-Export transactions, an area in which we have continued to record robust success.”
Seeking to reassure investors, Tinubu singled out the ”meaningful progress made in integrating operations, strengthening security and community relations, as well as resolving legacy issues inherited at the point of operatorship.”
Meanwhile, Oando’s Capital expenditure rose to N74.9 billion (9M 2024: N26.9 billion), reflecting increased upstream and infrastructure investments.
For the period, the CEO said 1.28 billion-share distribution is underway Tranche 1 (1-for-12) completed in August 2025; Tranche 2 to follow for shareholders on record as of 30 June 2025.
Group production averaged 38,121 boepd in 9M 2025, up 59% year-on-year and within guidance, supported by the consolidation of the NAOC JV interest and improved uptime.
The company saw increased crude and NGL output following the successful revamp of the NGL processing plant, supported by 82% uptime across operated assets — enhancing recovery, reliability, and operational efficiency.
In the period under review, Oando traded 21 crude oil cargos (19.8 MMbbl) in 9M 2025, up from 15 cargos (16.7 MMbbl) in 9M 2024, driven by stronger offtake execution and stable supply chain performance.
Looking ahead, Oando sets Full-year production guidance lower to circa 40,000 boepd, and projected FY2025 capex of $120–130 million, revised downwards due to rig availability constraints, focused on drilling, infrastructure, and ESG projects.
It maintained trading guidance at 25–35 MMbbl for crude oil and suspended refined product trading guidance ”pending market recovery.”
CEO Tinubu is confident about the future of the business goin forward.
”As we enter the final quarter of 2025, we remain focused on further strengthening our balance sheet, accelerating production growth, expanding our trading footprint, optimizing our cash flows, and sustaining long-term value creation,” he adds.
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