By Ayomide Otitoju
Oando Plc, Nigeria’s leading indigenous energy group listed on both the Nigerian Exchange and the Johannesburg Stock Exchange, has reported a Profit After Tax (PAT) of ₦210 billion for the nine months ended September 30, 2025 — a 164% increase from ₦76 billion in the same period of 2024. The growth was driven by higher production volumes and improved operational efficiency.
Group revenue, however, declined by 20% year-on-year to ₦2.5 trillion from ₦3.2 trillion in 2024, largely due to reduced gasoline imports following the ramp-up of the Dangote Refinery, which has significantly reshaped Nigeria’s refined products market. Gross profit stood at ₦113 billion, down 42%, reflecting shifts in market dynamics and the Group’s evolving segment mix.
Commenting on the results, Group Chief Executive Wale Tinubu, CON, said: “In the first nine months of 2025, we consolidated the gains achieved following our acquisition of NAOC’s assets last year. Our assumption of operatorship has been transformational, granting us the agility to act decisively and drive production growth and operational efficiency.”
According to Tinubu, the Group recorded a 59% year-on-year rise in crude oil and gas production, averaging 38,121 barrels of oil equivalent per day (boepd), underscoring the impact of the NAOC acquisition and the value embedded in its reserves.
To sustain growth, Oando increased its Reserve-Based Lending (RBL 2) facility to $375 million, improving liquidity and supporting the accelerated development of its 1 billion barrels of oil equivalent upstream portfolio. The company also renegotiated key credit facilities on more favorable terms, extending repayment periods to enhance financial flexibility.
Oando noted that its revamped NGL processing plant achieved 82% operational uptime, boosting reliability and production output. The completion of the Obiafu-44 gas-condensate well and ongoing surface facility upgrades are expected to further enhance flow efficiency and minimize downtime.
The Group also expanded its international footprint, securing operatorship of Block KON 13 in Angola — its first asset in the Kwanza Basin — and emerging as the preferred bidder for the Guaracara Refinery in Trinidad & Tobago, marking its entry into the Caribbean downstream market.
In the downstream segment, Oando Trading lifted 21 crude cargoes (19.8 million barrels), compared to 15 cargoes (16.7 million barrels) in the same period of 2024, as the division strategically rebalanced toward higher-margin crude and gas trading opportunities.
Analysts say Oando’s steady output growth, international expansion, and diversification into clean energy position it strongly among Africa’s indigenous oil and gas leaders. The company is also advancing clean energy initiatives, including a 1.2GW solar PV assembly plant, a 6MW geothermal pilot, and a PET recycling facility with a capacity of 2,750 tons per month.
During the period, Oando appointed Mrs. Folashade Ibidapo-Obe as Chief Compliance Officer and Company Secretary to strengthen governance and compliance structures. The company also completed the first tranche of its 1.28 billion-share distribution programme, delivering a 5.33% dividend yield to shareholders — its first in several years.
Looking ahead, Oando reaffirmed its full-year production guidance of around 40,000 boepd and capital expenditure of $120–130 million, focused on drilling, infrastructure optimization, and ESG initiatives.
“As we enter the final quarter of 2025, we remain focused on strengthening our balance sheet, accelerating production growth, expanding our trading footprint, optimizing cash flows, and sustaining long-term value creation,” Tinubu said.
