…Revenue declined by 15% year-on-year to N1,721 billion (H1 2024: N2,031 billion)
…Gross profit decreased by 28% to N59 billion (H1 2024: N82 billion)
…Capital expenditure rose to N44 billion (H1 2024: N18 billion)
FRI AUG 01 2025-theGBJournal| Nigeria’s leading indigenous energy group Oando Plc on Thursday posted weaker-than-expected H1-2025 in gross profit, following declining PMS imports into the country and strategic reset.
The oil and gas major posted revenue declined of 15% year-on-year to N1,721 billion (H1 2024: H2,031 billion), reflecting lower trading activity and weaker realised prices, despite stronger upstream contributions.
Oando’s gross profit fell by 28% to N59 billion (H1 2024: N82 billion), in line with the topline contraction and changing segment mix.
The Group’s capital expenditure rose to N44 billion (H1 2024: N18 billion), driven by infrastructure upgrades, production optimisation, and integration of the NAOC asset base.
”In H1 2025, we advanced our growth agenda in our upstream division, the primary driver of the Group’s performance, by achieving a 63% year-on-year increase in production volumes,” Group CEO Wale Tinubu explains performance
”This was driven by the successful consolidation of NAOC’s assets, early gains from our optimization programme and our assumption of operatorship, which enabled us implement holistic security measures amid improved community relations, resulting in enhanced infrastructure reliability, higher production volumes, and greater operational resilience.”
For the 1H-2025, Oando trading segment faced headwinds which exerted pressure on the entity’s revenue and the Group’s topline as a result of declining PMS imports into the country due to rising local refining capacity from the Dangote Refinery, a positive development that enhances Nigeria’s energy security and self-sufficiency.
In response, the Group diversified its crude offtake sources, optimized trade flows, and expanded into LNG and metals.
Oando traded 14 crude oil cargos (12.9 MMbbl) in H1 2025, up from 10 cargos (10.6 MMbbl) in H1 2024, driven by stronger offtake execution.
However, no PMS cargos was traded in H1 2025 (H1 2024: 7 cargos), reflecting reduced market demand following subsidy removal and increased local refinery supply
But higher crude volumes helped offset the decline in PMS activity, with new pre-financing structures progressing to support future growth.
”These initiatives are already gaining traction and will support stronger performance in H2,” the company said.
Besides, Oando Clean energy also advanced its e-vehicles, PET recycling and solar module assembly projects, initiatives critical to our long-term diversification goals and broader commitment to environmental sustainability.
Meanwhile, Group crude production averaged 37,012 boepd in H1 2025, up 63% year-on-year and within guidance, supported by the consolidation of the NAOC JV interest and improved uptime across key assets.
The increase in crude output and higher NGL volumes, is attributed to the successful revamp of the NGL processing plant, also contributed to the uplift.
Oando equally upsized the RBL 2 facility to $375 million, enhancing financial flexibility to accelerate development of the Group’s expanded 1 billion boe upstream portfolio.
In H2-2025, Oando is targeting full-year production of 30,000 –40,000 boepd maintained, driven by a balanced capital programme of 3 new wells and 6 rig-less interventions, projected capex of $250–270 million focused on drilling, infrastructure, and ESG projects, with a 20% cost reduction goal, and has set trading guidance of 25 – 35 MMbbl crude oil; 750,000 – 1,000,000 MT refined products.
”As we enter the second half of the year, our priorities are clear: accelerate upstream monetization through drilling and production assurance, strengthen trading performance, and execute our capital restructuring initiatives to restore balance sheet flexibility. With a focused strategy and a clear execution roadmap, we remain committed to delivering sustained value to our shareholders.” CEO Tinubu said.
X-@theGBJournal|Facebook-the Government and Business Journal|email:gbj@govbusinessjournal.com|govandbusinessj@gmail.com
