Oando PLC, Nigeria’s largest indigenous energy company, listed on both the Johannesburg and Nigerian exchanges, reported a sharp 164% rise in profit after tax.
Oando PLC posted ₦210 billion ($144.9 million) for the nine months ending 30 September 2025, driven by surging oil production and disciplined execution.
The company reported that production volumes increased by 59% year-over-year to an average of 38,121 barrels of oil equivalent per day (boepd), reflecting the successful integration of assets acquired from Nigerian Agip Oil Company (NAOC) in 2024.
Refined-Product Shift Hits Revenue
Group revenue fell 20% to ₦2.5 trillion from ₦3.2 trillion a year earlier as the ramp-up of the Dangote Refinery reduced gasoline imports and permanently altered Nigeria’s refined-product market. Gross profit dropped 42% to ₦113 billion, underscoring the shifting sector mix and evolving market dynamics.
Wale Tinubu, Oando’s Group Chief Executive, said: “In the first nine months of 2025, we consolidated the gains achieved following our acquisition of NAOC’s 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 added that the NAOC deal had unlocked “the dawn of tremendous value” across the company’s reserves, with output growth confirming the positive impact of its new operating structure.
Oando also expanded its Reserve-Based Lending (RBL) facility to $375 million, improving liquidity and supporting the development of its 1 billion barrels of oil-equivalent upstream portfolio. The group renegotiated several credit facilities on more favourable terms, extending repayment periods to free cash for drilling and production upgrades.
Operational Momentum and Expansion
The company reported achieving 82% operational uptime at its NGL processing plant following a revamp that enhanced recovery and reliability across its production assets. It also completed the Obiafu-44 gas-condensate well in October and upgraded surface facilities to cut downtime and improve flow efficiency.
As part of its regional expansion, Oando secured operatorship of Block KON 13 in Angola, marking its entry into the Kwanza Basin and furthering its ambition to grow its African footprint.
Dr Chuka Mordi, an energy market analyst at CBO Capital, described Oando’s turnaround as “a combination of operational discipline, improved production efficiency, and a more favourable global crude pricing environment.” He said the performance showed the resilience of Nigerian firms adapting to post-subsidy market realities.
Vetiva Capital analyst Ijeoma Okafor said the results “may increase investor confidence in Nigerian oil equities, especially as the business deleverages and strengthens its balance sheet.”
She added, “This performance is a confidence booster for the local market. It shows that Nigerian oil firms are beginning to extract real value from upstream investments and global price stability.”
Analysts expect Oando’s robust ₦210 billion profit to lift investor sentiment on the Nigerian Exchange and strengthen perceptions of corporate credit quality in international markets. The results could also ease pressure on Nigerian corporate and sovereign bonds, narrowing yield gaps and attracting renewed foreign interest in energy-linked debt instruments.
