Oando Plc has reported a profit after tax of N204.8 billion for the financial year ended December 31, 2025, as the indigenous energy company recorded stronger production and improved operational performance following the integration of newly acquired oil and gas assets.
The company, which is listed on the Nigerian Exchange Limited and the Johannesburg Stock Exchange, announced in its audited financial results that average daily production rose by 32 per cent to 32,482 barrels of oil equivalent per day (boepd), driven by increased crude oil, gas and natural gas liquids (NGL) output.
According to the company, 2025 marked its first full year of operations following the acquisition of the Nigerian Agip Oil Company (NAOC) Joint Venture assets, with its focus shifting from acquisitions to operational efficiency, value creation and balance sheet optimisation.
Group Chief Executive, Wale Tinubu, described the year as a significant milestone in the company’s growth.
“FY2025 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,” he said.
He noted that the company improved asset integrity, strengthened security across its operating areas and enhanced facility uptime, resulting in a 32 per cent increase in production.
The company generated N258.3 billion in cash from operations during the year and ended the period with cash and cash equivalents of N422.9 billion, representing a 172 per cent increase from 2024. It also expanded its $375 million Reserve-Based Lending facility to improve financial flexibility.
Operational performance showed crude oil production rising by 36 per cent, gas production increasing by 24 per cent, while NGL production grew by 715 per cent following upgrades to gas processing infrastructure. Crude trading volumes also rose by 24 per cent to 25.7 million barrels.
Oando said it completed and commenced production from the Obiafu-44 gas-condensate well, its first operated development well since assuming operatorship of the assets. The company also reported zero fatalities, zero lost-time injuries and a Total Recordable Incident Rate of 0.05 during the year.
It attributed the improved upstream performance to higher facility uptime, restoration of previously shut-in wells, enhanced flow assurance and targeted infrastructure upgrades across its operated assets.
In its trading business, Oando said it reduced its exposure to premium motor spirit imports while increasing participation in crude oil and gas trading activities as part of efforts to strengthen commercial performance.
The company said its performance reflects the growing role of indigenous operators in Nigeria’s upstream oil and gas sector following the divestment of assets by international oil companies.
It noted that other indigenous firms also recorded improved results during the period. Seplat Energy reported revenue of $2.726 billion and average production of 131,506 boepd following the integration of Mobil Producing Nigeria Unlimited assets, while Aradel Holdings posted a 20 per cent increase in revenue to N699.4 billion after expanding its interest in ND Western and Renaissance Africa Energy Company.
Looking ahead, Oando projected average production of between 40,000 and 50,000 boepd in 2026, supported by development activities across Oil Mining Leases (OMLs) 60 to 63 and planned capital expenditure of between $90 million and $100 million.
The company also expects crude trading volumes to increase to between 30 million and 35 million barrels while expanding its clean energy initiatives, including the deployment of additional electric buses and investments in recycling and gas-to-power projects.
Tinubu said the company intends to build on the gains recorded in 2025 by increasing production, strengthening cash generation and maintaining disciplined capital allocation.
“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,” he said.