Oando PLC has reported a 32% surge in its upstream production alongside a revenue of N3.21 trillion for the 2025 financial year, marking a period of strategic portfolio realignment.
The unaudited results reveal a deliberate shift by the indigenous energy giant, which boosted profitability by pivoting its trading business towards higher-margin activities while aggressively developing its upstream assets.
Production averaged 32,482 barrels of oil equivalent per day (boepd). This growth was driven by a 36% rise in crude oil output, a 24% increase in gas production, and a 715% surge in natural gas liquids volumes. The company credited this performance to the full-year consolidation of its NAOC Joint Venture assets and improved operational uptime.
ALSO READ
Financially, the Group demonstrated a strategic trade-off. While revenue declined by 21% to N3.21 trillion and gross profit fell 82%, Profit After Tax increased by 10% to N241.3 billion.
This outcome resulted from a conscious decision to scale back low-margin refined petroleum product trading in favour of more lucrative crude and gas trading, coupled with impairment reversals and tax adjustments.
Group Chief Executive, Wale Tinubu, CON, described 2025 as a year focused on operational execution. The period saw the successful startup of the Obiafu-44 gas-condensate well, which is the first in a planned 36-well development programme. Capital expenditure was significantly increased for upstream development, and the Group realized $17.7 million in operational cost savings.
“In our downstream trading business, we responded decisively to evolving market dynamics by deliberately rebalancing our portfolio away from gasoline importation toward higher-margin crude and gas opportunities,” Tinubu stated. Looking ahead, the CEO emphasized execution, noting the focus is on diligent execution of the development programme to accelerate growth and strengthen cash generation.
