Oando PLC released its unaudited full-year 2025 financial results in February 2026, revealing a tale of contrasting performance: a significantly lower revenue figure and a modestly stronger profit after tax.
Group revenue declined 21% year-on-year to ₦3.21 trillion in FY 2025, compared with ₦4.09 trillion in FY 2024, a drop of approximately ₦880 billion.
The company attributed the revenue decline primarily to a deliberate strategic reduction in lower-margin refined-products trading, particularly gasoline (PMS) imports. This shift follows structural changes in Nigeria’s downstream oil market after the Dangote Refinery began scaling up domestic supply, reducing the need for large-volume imported PMS.
Trading segment revenue fell sharply from around ₦3.7 trillion to roughly ₦2.7 trillion, reflecting Oando’s move away from high-volume, low-margin refined-product trading toward higher-margin crude oil, natural gas, and upstream-led activities.
Gross profit was heavily impacted, plunging 82% to ₦27.8 billion from ₦155.9 billion in 2024, due to the lower revenue base and reduced operating leverage from the previous high-turnover trading model.
Bottom-line Growth
Despite the topline pressure, Oando delivered bottom-line growth:
- Profit after tax increased 10% to ₦241.3 billion (some reports cite ~₦241.8 billion), up from ₦220.1 billion in FY 2024.
- The profit improvement was driven mainly by a 32% rise in upstream production, averaging 32,482 barrels of oil equivalent per day (boepd) — among the strongest output levels in recent years.
- Higher crude oil, natural gas, and NGL production resulted from improved asset performance in the NAOC JV acreage, better facility uptime, successful well completions, and continued integration benefits following the 2024 NAOC acquisition.
Additional support came from impairment reversals, favourable tax adjustments, legacy recoveries, and positive swings in finance income.
Oando Group CEO Wale Tinubu described 2025 as “a year of relentless execution”, emphasizing the successful transition from NAOC JV integration into consistent operational delivery and the company’s strategic pivot toward a more upstream- and crude/gas-focused portfolio.
The FY 2025 results highlight Oando’s ongoing repositioning in Nigeria’s evolving energy landscape — stepping back from commoditized downstream trading and doubling down on higher-margin upstream production and selective crude & gas opportunities.
While the revenue decline reflects the short-term impact of exiting low-margin trading volumes, the strong upstream growth and profit expansion signal a more resilient and potentially higher-quality earnings profile emerging for one of Nigeria’s leading indigenous energy companies.