Oando profit surge hits ₦210bn as the energy firm records a 164% rise in profit, driven by stronger output and operational efficiency

Oando profit surge has propelled the indigenous energy group to a remarkable ₦210 billion Profit After Tax for the third quarter of 2025 — a 164 per cent rise from ₦76 billion in the same period of 2023.

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The company disclosed this in a statement on Thursday following the release of its unaudited financial results for the nine months ended 30 September 2025, filed with both the Nigerian Exchange and the Johannesburg Stock Exchange.

Despite the stellar profit, Oando’s revenue dropped by 20 per cent year-on-year to ₦2.5 trillion, down from ₦3.2 trillion in 2024.

The firm attributed the decline to reduced gasoline imports following increased output from the Dangote Refinery. Gross profit also fell by 42 per cent to ₦113 billion, reflecting market shifts and a change in the Group’s segment mix.

Group Chief Executive Wale Tinubu described the performance as transformational, citing gains from Oando’s acquisition of Nigerian Agip Oil Company (NAOC) assets last year.

“Our assumption of operatorship has been transformational, granting us the agility to act decisively and execute with precision in driving production growth and operational efficiency,” Tinubu said.

According to him, crude oil and gas production rose 59 per cent year-on-year to 38,121 barrels of oil equivalent per day (boepd), underscoring the impact of the NAOC acquisition.

Oando also upsized its Reserve-Based Lending facility to $375 million, enhancing its financial flexibility and accelerating development across its one-billion-barrel upstream portfolio.

It further renegotiated key credit lines, extending repayment terms to boost liquidity for ongoing drilling programmes.

The group’s production improvements were supported by the revamp of its NGL processing plant, which achieved 82 per cent operational uptime and boosted recovery and reliability.

The company also completed the Obiafu-44 gas-condensate well, which came onstream in October, alongside upgrades to surface facilities aimed at minimising downtime.

In its international drive, Oando secured operatorship of Block KON 13 in Angola, marking its debut in the Kwanza Basin, and emerged as the preferred bidder for the Guaracara Refinery in Trinidad & Tobago, signalling its expansion into the Caribbean downstream market.

Oando’s trading arm also posted strong performance, lifting 21 crude cargoes (19.8 MMbbl), up from 15 cargoes (16.7 MMbbl) a year earlier, after a strategic portfolio rebalance towards higher-margin trading.

Its clean energy division advanced projects in solar, electric mobility, and recycling, including a 1.2GW solar PV assembly plant and a 6MW geothermal pilot study, alongside land acquisition for a 2,750-tonne-per-month PET recycling facility.

The company strengthened its governance with the appointment of Mrs Folashade Ibidapo-Obe as Chief Compliance Officer and Company Secretary, and completed the first tranche of its 1.28 billion-share distribution programme, offering a 5.33 per cent dividend yield to shareholders — its first in years.

Looking ahead, the group reaffirmed its full-year production guidance of 40,000 boepd and projected capital expenditure of $120–130 million, prioritising drilling, infrastructure optimisation, and ESG-focused projects.

Tinubu concluded with optimism:

“As we enter the final quarter of 2025, we remain focused on strengthening our balance sheet, expanding our trading footprint, and sustaining long-term value creation.”

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Oando’s performance underscores its growing resilience in a challenging energy landscape — a powerful sign of recovery and disciplined execution.