Oando Posts N85b Gross Profit in Q1 2025
Oando (www.OandoPLC.com), recognized as one of Africa’s foremost indigenous energy solutions providers, has concluded the first quarter of the year on a positive note with the announcement of ₦933 billion in revenue in its Q1 2025 unaudited results. This achievement follows the recent release of its 2024 FY Audited Financial Statement, which indicated a 44% year-on-year revenue growth to ₦4.1 trillion, compared to ₦2.9 trillion in FY 2023, alongside a remarkable 267% increase in Profit-After-Tax to ₦220 billion.
Oando, similar to a select few indigenous oil and gas firms in Nigeria that have engaged in the International Oil Companies (IOCs) divestment of onshore assets, has started to benefit from its acquisition of Nigerian Agip Oil Company (NAOC) from the Italian oil major, Eni.
A detailed analysis of Oando’s financial performance reveals that the company’s turnover increased by 2% year-on-year to ₦933 billion in Q1 2025, compared to ₦915 billion in Q1 2024. Furthermore, the company recorded a significant 172% rise in Gross Profit, amounting to ₦85 billion in Q1 2025, up from ₦31 billion in Q1 2024, indicating improved exploration and production margins. In its upstream sector, crude oil production surged by 132% to 11,369 barrels of oil per day (bopd), gas volumes expanded by 56% to 25,185 barrels of oil equivalent per day (boepd), and natural gas liquids (NGL) production increased by 30% to 1,040 barrels per day (bpd). The company achieved zero lost-time injuries (LTIs) and recorded 12.3 million LTI-free hours, highlighting its commitment to health, safety, and environmental (HSE) excellence. Additionally, the company reached an average daily production of 37,595 boepd (within guidance), reflecting a 72% year-on-year increase, driven by the complete consolidation of NAOC assets and the reactivation of wells. Oando was also granted operatorship of Block KON 13 in Angola, signifying its strategic entry into the Kwanza Basin and further expanding Oando’s upstream presence across Africa.
In discussing the financial results for the first quarter of 2025, Wale Tinubu CON, Group Chief Executive of Oando PLC, stated, “The first quarter of 2025 has begun strongly for us, showcasing a 72% year-on-year increase in production volumes. This growth is attributed to the successful integration of the NAOC assets into our portfolio, enhanced asset reliability, and the reactivation of previously shut-in wells, which reflect our early achievements stemming from a focus on operational efficiency and disciplined execution.
Furthermore, our regional presence has expanded beyond Nigeria, with our entry into Angola’s Kwanza Basin representing a significant milestone in broadening our upstream footprint across Africa. Additionally, being selected as the preferred bidder for the Guaracara Refinery in Trinidad and Tobago underscores the robustness of our integrated business model, our increasing influence in the Afro-Caribbean region, and signifies our transformation into a more geographically diversified energy company.”
There is a noticeable trend of upward financial performance within the industry, as evidenced by Seplat’s reported revenues of N1.228 trillion, reflecting a 350% increase. Similarly, Aradel has reported revenues of ₦199.9 billion, which is a 97.6% increase, alongside a Profit after Tax of ₦34.2 billion, marking a 55.3% rise.
In the downstream trading sector, Oando Trading has reported the trading of six (6) crude oil cargos (5.96 MMbbl) in the first quarter of 2025, an increase from four (4) cargos (4.86 MMbbl) in the first quarter of 2024, driven by improved offtake execution.
In the renewable energy sector, Oando Clean Energy (OCEL) has recorded 53,941 electric vehicle rides in the first quarter of 2025 and has averted 42,779 kg of CO₂ emissions through the operation of two (2) e-buses under the electric mobility programme in Lagos. Additionally, it has successfully published Nigeria’s National Wind Resource Capacity Report, which identifies the wind potential at the state level across the country.
Discussing the forecast for 2025, Wale Tinubu CON remarked, “In light of a transformative 2024, our primary focus is to enhance the value of our expanded upstream portfolio through strategic infrastructure improvements, rig-less well interventions, and a comprehensive drilling program in the latter half of the year. These initiatives are now supported by the working capital we have secured, providing us with the financial flexibility to expedite execution. Additionally, we are taking decisive measures to restructure our balance sheet to restore financial resilience.”
Oando aims for a full-year production of 30–40 kboepd, sustained by a balanced capital program that includes three (3) new wells, nine (9) workovers, and six (6) rig-less interventions. The company is also forecasting capital expenditures of $250–270 million, concentrating on drilling, infrastructure, and ESG initiatives, with a target of reducing costs by 20%. Furthermore, the company has established trading guidance for its Trading subsidiary of 25 – 35 MMbbl of crude oil and 750,000 – 1,000,000 MT of refined products. In its renewable energy division, Oando aims to deploy 50 electric buses and advance its solar PV module assembly plant towards Final Investment Decision (FID).
These strategies are bolstered by the company’s recent announcement regarding the successful increase of its reserve-based lending (“RBL2”) facility to $375 million. This vital financing will greatly enhance the Company’s capacity to meet its production goal of 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the conclusion of 2029.
The Q1 2025 results underscore the increasing momentum among indigenous operators in Nigeria’s upstream sector, who are starting to exhibit operational efficiency and financial resilience after recent asset acquisitions. With a 2% increase in revenue, an impressive 172% rise in gross profit to ₦85 billion, and a 72% growth in average daily production, all within the expected range, Oando’s performance indicates not only the feasibility of the shift from IOC to indigenous ownership but also the growing ability of local players to provide value and foster long-term growth in Nigeria’s energy sector.
