By Kehinde Ibrahim, Lagos
OANDO Plc has reinforced its position as one of Nigeria’s leading indigenous energy companies, posting a profit after tax of N204.81 billion for the financial year ended December 31, 2025, while achieving significant production growth and advancing the integration of its newly acquired Nigerian Agip Oil Company, NAOC, Joint Venture assets.
The company’s audited financial statements, filed with the Nigerian Exchange, NGX, highlighteed a year of strategic transformation as Oando completed its first full year of operations following the landmark acquisition of the NAOC Joint Venture assets. Although the company navigated a challenging operating environment marked by softer revenues and higher financing costs, management expressed confidence that the enlarged asset base has laid a strong foundation for sustained long-term growth.
Revenue for the year stood at N3.18 trillion, while profit before tax amounted to N135.76 billion. Profit after tax closed at N204.81 billion, reflecting the resilience of the company’s diversified operations despite macroeconomic pressures affecting the energy sector.
Commenting on the performance, Group Chief Executive, Wale Tinubu described 2025 as a defining year in Oando’s corporate evolution.
According to him, the company successfully moved beyond the integration phase of the NAOC acquisition and shifted its focus towards operatorship, operational excellence and value creation across its expanded portfolio.
Tinubu noted that the successful completion of the Obiafu-44 well demonstrated the technical competence of indigenous operators to execute complex oil and gas development projects safely, efficiently and responsibly while creating sustainable value for shareholders and stakeholders.
One of the major highlights of the financial year was Oando’s strong operational performance. Average daily production rose by 32 per cent to 32,482 barrels of oil equivalent per day (boepd), driven by higher crude oil, natural gas and natural gas liquids output, alongside the full-year contribution from the consolidated NAOC Joint Venture assets.
The production growth represents one of the strongest operational performances in the company’s recent history and positions Oando to benefit from increased production volumes and stronger earnings potential in subsequent financial years.
To sustain the momentum, the company invested approximately $36.9 million in capital expenditure during the year. The investment was directed towards field development, infrastructure upgrades and exploration activities designed to enhance production efficiency and unlock additional reserves across its asset portfolio.
While some mature assets experienced temporary production constraints, management disclosed that development activities are already underway to restore and improve output.
Production at OML 56 (Ebendo) averaged 2,379 boepd during the year following a temporary regulatory-related shutdown between February and April. Similarly, production from OML 13 ,Qua Ibo, averaged 370 barrels per day as a result of natural field decline, with a new development well scheduled for early 2026 to support production recovery.
Operationally, Oando continued to strengthen cost discipline during the year. Administrative expenses declined significantly to N399.25 billion from N548.31 billion recorded in the previous year, reflecting management’s ongoing efforts to improve operational efficiency and optimise costs across the enlarged business.
The company also recorded a remarkable improvement in finance income, which increased by more than 510 per cent to N288.03 billion. This helped reduce net finance costs despite higher borrowing expenses associated with the expansion of its upstream portfolio.
Oando’s balance sheet also reflected the scale of its expanded operations. Total assets increased to N7.45 trillion, driven by substantial growth in current assets. Trade and other receivables, including contract assets, rose to N2.19 trillion, while cash and cash equivalents almost doubled to N439.88 billion, providing stronger liquidity to support future investment plans.
Although total liabilities also increased following the acquisition and financing of new assets, analysts note that such expansion is typical for companies undertaking large-scale strategic investments expected to generate stronger returns over time.
The company maintained a focus on strengthening its financial position while positioning itself to maximise value from its enlarged upstream portfolio.
Market observers believe the full benefits of the NAOC acquisition are likely to become more evident in 2026, when the assets contribute a complete year of optimised operations under Oando’s management.
Despite the challenging business environment, Oando improved earnings per share to 23 kobo from 18 kobo in 2024, reflecting continued value creation for shareholders.
The company’s shares closed at N41.45 on July 6, 2026, ahead of the release of the audited results, and investors are expected to closely monitor market reaction as confidence grows around Oando’s strengthened production profile and long-term growth strategy.
With a larger asset base, stronger production capacity, ongoing investments in field development and a clear operational roadmap, Oando appears well positioned to capitalise on emerging opportunities in Nigeria’s upstream oil and gas sector. Management remains optimistic that the successful integration of the NAOC assets, combined with continued operational improvements, will enhance profitability, strengthen cash generation and deliver sustainable value for shareholders in the years ahead.
