Oando PLC (NGX: OANDO; JSE: OANDO) has officially signaled the end of its high-octane asset acquisition phase, reporting an audited net profit of ₦204.8 billion for the full year ended December 31, 2025.
The financial results represent a structural inflection point for Africa’s premier dual-listed independent energy group as it completes its transition into a full-scale upstream operator.
The headline numbers reveal a calculated trade-off. Aggregate group revenue contracted by 22% to ₦3.2 trillion, down from ₦4.1 trillion logged in FY 2024.
However, the top-line shrinkage was a deliberate tactical retreat. Oando systematically purged its portfolio of lower-margin Premium Motor Spirit (PMS, or gasoline) importation activities to focus exclusively on high-margin upstream hydrocarbons and crude trading streams.
While operating profit moderated relative to the previous year’s non-recurring bargain purchase gains, bottom-line net profitability was strongly reinforced by significant administrative cost savings, massive asset impairment reversals, and structural tax credits.
Upstream Injections and Operational Reliability
The operational engine of the group delivered substantial growth, capturing its first full-year consolidated contribution from the recently acquired Nigerian Agip Oil Company (NAOC) Joint Venture assets.
Total upstream production jumped 32% year-on-year to average 32,482 barrels of oil equivalent per day (boepd), up from 24,537 boepd in FY 2024.
The production mix broke down with robust horizontal expansion across all key asset denominators:
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Crude Oil Output: Rose 36% to average 11,269 bopd.
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Natural Gas Volumes: Advanced 24% to hit 19,982 boepd.
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Natural Gas Liquids (NGLs): Skyrocketed 715% to 1,231 bpd following aggressive technical revamps at core gas processing infrastructure.
Oando’s technical teams successfully achieved a landmark milestone post-takeover, completing and bringing onstream the Obiafu-44 gas-condensate well—the company’s first fully operated development well since assuming operatorship of the asset block. The asset optimization run helped insulate Oando’s reserve profile, securing total 2P reserves of 928 MMboe to guarantee multi-decade production visibility.
The Cash Conversion Turnaround
Financially, the highlight of the 2025 audit was a dramatic restoration of cash liquidity. Cash generated from operations surged to ₦258.3 billion, demonstrating highly efficient working capital management and faster cash-conversion cycles across the expanded NAOC fields.
The cash surge nearly doubled the group’s ending cash and cash equivalents position to ₦422.9 billion. Oando utilized this liquid insulation to self-fund an expanded ₦135.0 billion capital expenditure cycle focused squarely on short-cycle, high-impact upstream developments.
To augment its organic cash generation, Oando, under the guidance of Chief Financial Officer Adeola Ogunsemi, successfully upsized its Reserve-Based Lending (RBL) facility to $375 million via an international syndicate anchored by Afrexim Bank. This debt restructuring campaign enabled the firm to push out maturities, replacing expensive short-term liabilities while maintaining plenty of room to fund future development wells.
Outlook: Aggressive Targeting for 2026
“With operational control firmly embedded, a strong reserves base, and improving financial flexibility, we enter 2026 from a position of strength,” remarked Wale Tinubu CON, Group Chief Executive Officer.
Looking ahead, executive management has laid out highly ambitious operational guidance for the next fiscal year. Oando is targeting an aggressive production ramp-up to a baseline of 40,000 to 50,000 boepd. To meet this target, the group plans to deploy $90 million to $100 million in fresh capex to execute a seven-well near-field drilling campaign across OMLs 60–63. Concurrently, crude trading volumes are modeled to expand to 30–35 MMbbls, positioning the indigenous energy giant to capture maximum dollar-denominated revenues as it begins to clean up its legacy retained losses position.
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