Oando PLC has reported a strong operational and financial performance for the 2025 financial year, underscoring the benefits of its acquisition of the Nigerian Agip Oil Company (NAOC) Joint Venture assets and positioning the indigenous energy group for further growth in 2026.
According to the company’s results, average daily production increased by 32% year-on-year to 32,482 barrels of oil equivalent per day (boepd), driven by stronger crude oil, natural gas and natural gas liquids (NGL) output across its expanded upstream asset portfolio. The company attributed the performance to improved asset reliability, higher facility uptime, enhanced security and the successful integration of the former NAOC Joint Venture assets.
Although revenue declined to ₦3.2 trillion from ₦4.1 trillion in 2024, the company delivered a profit after tax of ₦204.8 billion, supported by impairment reversals, tax credits and stronger operational efficiency. Cash generated from operating activities stood at ₦258.3 billion, while cash and cash equivalents closed the year at ₦422.9 billion, providing significant financial flexibility for future investments.
Trading operations also recorded solid growth, with volumes increasing by 24% to 25.7 million barrels, reflecting the company’s emphasis on higher-value transactions rather than volume alone.
Oil Reserves
On the reserves front, Oando reported 2P reserves of 928 million barrels of oil equivalent (MMboe), compared with 950 MMboe in the previous year. The modest decline was attributed primarily to normal production depletion and updated technical assessments, while management maintained that the reserve base continues to provide a strong foundation for long-term production growth.
The company invested ₦135 billion in capital expenditure during the year, largely directed towards upstream development projects. It also expanded its Reserve-Based Lending (RBL2) facility to US$375 million, further strengthening liquidity and funding capacity for future projects.
Operationally, Oando maintained a strong safety performance, reporting zero fatalities and zero lost-time injuries (LTIs) throughout the year, alongside a low Total Recordable Injury Rate (TRIR), reflecting continued emphasis on operational excellence and workforce safety.
Commenting on the results, Group Chief Executive Wale Tinubu said the company had successfully transitioned from acquisition to execution.
“FY2025 marked our first full year of operational execution following the NAOC acquisition. We strengthened asset integrity, enhanced security and improved uptime, resulting in a 32 percent year-on-year production increase. These achievements demonstrate the resilience of our business and position us strongly to build on this momentum in 2026.”
Future Projections
Looking ahead, Oando projects average production of between 40,000 and 50,000 boepd in 2026, supported by a development programme involving seven new wells across OMLs 60, 61, 62 and 63.
The company also plans to invest between US$90 million and US$100 million in capital projects, while targeting trading volumes of 30 million to 35 million barrels over the year.
Beyond hydrocarbons, Oando said it remains committed to its energy transition strategy through continued investments in cleaner energy solutions, including electric mobility initiatives, recycling projects and gas-to-power developments aimed at supporting Nigeria’s evolving energy landscape.
