Oando PLC, a leading indigenous Nigerian energy solutions provider, reported a significant 32% increase in its average daily production for 2025, achieving 32,482 barrels of oil equivalent per day (boepd), even as its total revenue declined by 21% to ₦3.21 trillion.
This result underscores a deliberate strategic shift where the company scaled back high-volume, low-margin refined fuel trading to focus on more profitable upstream development and crude oil trading, leading to an 82% drop in gross profit but a 10% rise in net profit to ₦241.3 billion.
Okay News reports that the production surge was driven by the full-year consolidation of assets from the NAOC Joint Venture and improved operational uptime. Group Chief Executive Wale Tinubu, CON, stated the year marked a transition “from integration to operational delivery,” highlighted by the startup of the Obiafu-44 gas-condensate well, which begins a 36-well development program designed to boost medium-term output and cash generation.
The company’s trading business mirrored this strategic pivot, increasing crude oil cargo trades by 42% while deliberately pausing premium motor spirit (PMS) importation due to changing market dynamics. Tinubu explained the rebalancing away from gasoline, though reducing short-term earnings, aligns with a longer-term focus on margin quality and capital efficiency, utilizing structured financing to support liquidity and production monetization for clients.
Oando increased its capital expenditure significantly in 2025, investing in upstream development and facility integrity while realizing $17.7 million in cost savings. With retained earnings returning to a positive position, the company positions itself for sustainable growth, focusing on executing its development drilling program to accelerate production and strengthen its financial resilience in the evolving energy landscape.
