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Oando’s Unaudited Profit Plunges 82% to N27.8bn Despite Production Surge in 2025

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Oando Plc recorded a sharp 82% decline in gross profit to N27.8 billion in the 2025 financial year, highlighting mounting margin pressures despite a strong increase in upstream oil and gas production.

The indigenous energy company disclosed this in its unaudited results for the year ended 31 December 2025 which was filed to the Nigerian Exchange (NGX) on Monday, February 2, 2026.

While production volumes rose 32% year-on-year, the steep drop in gross profit reflects a shift in revenue mix, lower realised commodity prices, and the impact of accounting adjustments, signalling a year of strategic repositioning rather than operational weakness.

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What the data is saying
Oando’s financial performance in 2025 was characterised by a sharp contraction in topline and margins, even as upstream activity expanded significantly. Gross profit fell from N155.9 billion in 2024 to N27.8 billion, while revenue declined 21% to N3.21 trillion.

  • Revenue declined to N3.21 trillion from N4.07 trillion in 2024, reflecting a deliberate scale-back of refined-product trading.
  • Gross profit dropped 82% year-on-year to N27.8 billion, driven by margin compression across crude oil, gas, and natural gas liquids.
  • Operating profit fell 91% to N50.2 billion, underscoring the impact of lower margins and non-cash accounting items.
  • Profit after tax rose 10% to N241.3 billion, supported by non-operating gains despite weaker operating performance.
  • Despite the weaker margins, upstream production increased materially, with average output rising to 32,482 barrels of oil equivalent per day (boepd), following the full-year consolidation of the Nigerian Agip Oil Company (NAOC) Joint Venture assets.

More insights
The decline in gross profit was largely a function of revenue composition rather than a deterioration in core operational capacity. Oando intentionally reduced exposure to high-volume, low-margin downstream trading as Nigeria’s downstream market adjusted to subsidy removal and pricing liberalisation.

  • Cost of sales declined in line with lower trading volumes, but this was insufficient to prevent margin erosion.
  • Average realised crude oil prices fell to $65.23 per barrel from $73.91 in 2024, limiting the earnings upside from higher production volumes.
  • Capital expenditure increased sharply to N101.9 billion from N18.5 billion, reflecting renewed investment in upstream development and asset integrity.
  • The company’s upstream segment provided partial support, with crude oil liftings rising 30% and gas sales volumes increasing 59% year-on-year, helping to stabilise cash generation amid weaker trading margins.

What the company is saying
Oando’s management said 2025 marked a transition year from asset integration to execution, with a focus on restoring production capacity and improving operational efficiency.

“2025 was a year of relentless execution as we successfully transitioned from the integration of the NAOC Joint Venture into operational delivery,” said Group Chief Executive Officer, Wale Tinubu.

“Over the year under review, we reinforced asset integrity, strengthened security across our operating areas, and materially improved uptime, delivering a 32% year-on-year increase in total production.”

“Operated Joint Venture production averaged approximately 80,545 boepd, translating to 32,482 boepd net to Oando, alongside a 30% increase in crude oil liftings and a 59% increase in gas sales volumes.”

Management noted that upstream gains were complemented by early progress on its development drilling programme, including the successful completion of the Obiafu-44 gas-condensate well, the first milestone in a planned 36-well programme.

Why this matters
Oando’s results underscore the financial trade-offs involved in repositioning away from downstream petrol trading toward upstream oil and gas development.

  • While the strategy reduced revenue and near-term margins, it aligns the business with higher-value and more sustainable growth opportunities over the medium term.
  • The significant increase in capital expenditure suggests the company is prioritising long-term production growth and asset reliability, even at the expense of short-term profitability.
  • However, sustained margin pressure and lower oil prices could continue to weigh on operating performance if not offset by higher volumes and improved cost efficiency.

What you should know
Oando undertook several balance-sheet and capital-structure initiatives during the year to support its growth strategy and improve liquidity.

  • The Group executed the first tranche of its 1.28 billion share distribution programme in August 2025, issuing one fully paid share for every twelve shares held.
  • A second tranche of the share distribution is expected, subject to Board approval.
  • Oando plans to raise equity and convert debt as part of ongoing capital restructuring efforts, with proposals to be tabled at an upcoming AGM/EGM.
  • Capital expenditure rose to N101.9 billion in 2025, focused on upstream development, facility integrity, and infrastructure upgrades.
  • These measures are aimed at strengthening the balance sheet, reducing legacy obligations, and positioning the company for more resilient earnings as it enters the 2026 financial year.

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Dangote Cement Deepens Sustainability Drive with Green Logistics, Climate Commitments

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The Dangote Cement Plc has reaffirmed its commitment to sustainable business practices, environmental stewardship, and responsible growth across Africa, as the company continues to integrate sustainability into every aspect of its operations.

The company’s sustainability strategy remains focused on reducing environmental impact, improving energy efficiency, promoting diversity and inclusion, supporting local communities, and creating long-term value for stakeholders across its ten African markets.

As part of its decarbonisation and green logistics agenda, Dangote Cement is expanding its alternative-energy transportation programme through the acquisition of an additional 1,500 compressed natural gas (CNG) trucks. The initiative is designed to lower greenhouse gas emissions, improve operational efficiency, and reduce dependence on conventional diesel-powered transportation.

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The company also reported significant progress in its environmental performance, earning an upgraded “B” rating from the Carbon Disclosure Project (CDP) for its climate and water management initiatives, reflecting growing international recognition of its sustainability efforts.

According to the company, energy optimisation remains a key pillar of its sustainability strategy, with a favourable energy mix contributing to lower production costs while supporting efforts to reduce its carbon footprint across operations.

Commenting on the company’s sustainability agenda, Arvind Pathak, Group Managing Director/CEO of Dangote Cement Plc, said: “At Dangote Cement, sustainability is not a standalone initiative; it is embedded in the way we operate, invest and grow. As we expand our footprint across Africa, we remain committed to reducing our environmental impact through cleaner energy sources, improved operational efficiency and innovative logistics solutions such as our growing CNG-powered fleet. Our goal is to create lasting value for shareholders while supporting the transition to a more sustainable and resilient future for Africa.”

He added: “We recognize that cement is essential for Africa’s development and infrastructure growth. Therefore, our responsibility is not only to produce quality cement but to do so in a way that minimizes emissions, conserves resources, protects the environment and delivers meaningful benefits to our host communities. Sustainability remains central to our strategy for long-term growth and value creation.”

Dangote Cement’s sustainability agenda extends beyond environmental performance to strong corporate governance and social responsibility. The company maintains a diverse Board with 28 per cent female representation and directors drawn from seven different nationalities, reinforcing its commitment to inclusion, diversity and global best practices in governance.

The company also continues to align its sustainability initiatives with the United Nations Sustainable Development Goals (SDGs), focusing on responsible industrialisation, climate action, economic growth and community development.

The company noted that its sustainability performance complements a resilient business model that continues to create shared value for investors, employees, customers, host communities and governments across the continent. The company remains focused on transforming Africa’s industrial landscape while advancing its ambition of becoming one of the most sustainable cement manufacturers globally.

Among others, some of the company’s sustainability highlights include CDP rating upgraded to B for climate and water management, Acquisition of 1,500 additional CNG trucks to support low-carbon transportation and emissions reduction, Continued investment in energy efficiency initiatives across operations, 28% female Board representation and directors from seven nationalities, Sustainability initiatives aligned with the UN Sustainable Development Goals (SDGs).

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Nigeria Welcomes Africa’s First Steel Pipe Bending, Coating Factory

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Africa’s first fully integrated 2-inch to 48-inch steel pipe induction bending and coating plant is poised to open in Nigeria before end of 2027.

The project completion timeline was disclosed by the Managing Director of Brentex Petroleum Services Limited, Chidi Nzerem, during a tour of the Steel Pipe Induction Bending and Coating Facility at the Federal Ocean Terminal (FOT), Onne Port, Rivers State by the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Felix Ogbe.

Ogbe lauded the firm on the significant progress recorded on the project, describing it as a landmark industrial project and a major demonstration of Nigeria’s growing status as a leading hub for oil and gas logistics, engineering, and manufacturing services.

The Brentex Facility is a $50 million investment being developed to provide integrated steel pipe induction bending, heat treatment, testing, and coating services for Nigeria’s oil and gas industry and has attracted over $26 million in investments to date.

Ogbe, reaffirmed the Board’s commitment to working with industry stakeholders to deepen in-country capacity, promote industrialisation, and expand the scope of Nigerian Content in the oil and gas industry.

He praised Brentex Petroleum Services Limited for its bold investment, resilience, and commitment to developing indigenous capacity, noting that the company’s steady progress on the facility reflected the growing confidence of Nigerian firms in delivering world-class oil and gas infrastructure and engineering solutions.

The Executive Secretary, represented by the Director, Monitoring and Evaluation Directorate (MED), Esueme Dan Kikile, noted that the emergence of the Brentex Steel Pipe Induction Bending and Coating Facility represents “a direct and tangible response to the quest for in-country capacity in specialised pipeline engineering services,” adding that the project would advance “our collective goal of retaining value, creating jobs, and strengthening Nigeria’s position as a leading energy services hub in Africa.”

In a recollection of the beginnings of the company and the project, he disclosed, “We’ve been on this journey with Brentex for over a decade. Today, we’ve seen what you are doing on ground. And that’s actually the whole idea about the equipment component manufacturing initiative of the NCDMB – in-country value addition – and you have been steadfast.”

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The NCDMB boss urged the Management of Brentex to sustain the momentum on the project and maintain the highest standards of quality, safety, and operational excellence, noting that the facility has the potential to become a flagship Nigerian Content asset and a reference point for specialised pipeline engineering services across Africa.

“I’d like to express the Board’s deep appreciation for your investment in our country, and to assure you that you have our support,” he declared, adding, “Whatever we can also do to get the industry to patronise this investment, we’ll do that, because it’s very important that the industry take advantage of what we have in-country.”

In his opening remarks, Nzerem thanked the Executive Secretary and the NCDMB delegation for the visit, describing it as a strong vote of confidence in the project and its contribution to the growth of in-country capacity.

He also acknowledged the Board’s support and partnership over the past 10 years, noting that the sustained interventions had been instrumental to the facility’s progress, adding that it was conceived to advance the objectives of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, 2010.

Nzerem expressed high hopes that the Board’s support would be sustained.

Responding to an inquiry by the General Manager, Downstream, Project Certification and Authorisation Division (PCAD), Tassalla Tersurgh, on the facility’s contribution to human capital development, the Managing Director said the company would engage NCDMB after facility certification to develop training programmes aligned with the Board’s mandate.

He disclosed that the facility is expected to engage about 200 engineers and other technical personnel, creating employment, technical training, skills transfer and capacity-building opportunities, with the long-term goal of the facility being 100 percent handled and operated by trained Nigerians.

On the strategic importance of the facility, the Project Manager at Brentex, Patrick Anaje, stated that the facility, the first of its kind in sub-Saharan Africa, is expected to transform pipeline engineering services by providing the country’s first fully integrated in-country solution for steel pipe induction bending and coating.

He disclosed that Brentex is currently engaged in the Ajaokuta-Kaduna-Kano (AKK) Natural Gas Pipeline project, where the company’s new capabilities would be of immense value.

He noted that with an estimated 95 percent of steel pipes currently imported, the facility will enable operators to source specialised pipe induction bending, coating and pipe repair services locally, significantly reducing dependence on foreign suppliers and overseas repairs, shortening project delivery timelines, lowering procurement-related delays and costs, and improving operational efficiency across the oil and gas industry. He added that the project will also deliver significant benefits to the national economy by retaining industry value within Nigeria.

The ceremony was attended by top management officials of NCDMB, executives of Brentex Petroleum Services Limited, industry stakeholders, project consultants, contractors, representatives of the host communities of Onne and Ogu, members of the Community Liaison Committee (CLC), and members of the media, who witnessed firsthand the significant progress recorded on the strategic Nigerian Content project.

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Dangote Moots Storage Terminal in Cameroon

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As part of efforts to strengthen the regional distribution network of its 700,000-barrel-per-day refinery and strengthen presence in Africa, the Dangote Group is considering a petroleum products storage terminal in Cameroon.

To this end, the Dangote Group, through its Vice President for Oil, Gas and Fertiliser, Devakumar Edwin, on Tuesday, tabled a proposal before Cameroon’s Prime Minister, Joseph Dion Ngute.

From details of the proposal vented by a local media outlet, Business in Cameroon, the planned facility would help build Cameroon’s strategic petroleum reserves, improve fuel supply security and potentially include a pipeline network for transporting refined products, which would reduce logistics costs and the environmental impact associated with road haulage.

However, the project is still at its preliminary stages as no agreement has been announced by the parties.

The Dangote Group has yet to disclose the proposed location of the terminal, its storage capacity, investment value or implementation timeline.

It has also not stated whether the facility would be wholly owned, developed in partnership with the Cameroonian government or executed under a public-private partnership arrangement.

If realised, the project would provide a major export outlet for petroleum products from the Dangote refinery in Lekki, Lagos, which was built to meet domestic demand while supplying regional markets across Africa.

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According to reports, the proposed terminal would also position the company to serve not only the Cameroonian market but also landlocked Central African countries, including Chad and the Central African Republic, which rely heavily on Cameroonian ports for fuel imports.

By positioning petroleum inventories closer to end-users, the company is expected to reduce delivery times, lower distribution costs and improve the efficiency of fuel supply across the region.

For Cameroon, the investment could strengthen fuel supply security and diversify petroleum product sources, provided the project aligns with the country’s pricing framework, taxation policies and strategic reserve requirements.

It was learnt that the proposal comes as Cameroon intensifies efforts to expand its petroleum storage capacity through major infrastructure projects in the port city of Kribi.

The country’s National Petroleum Storage Company is currently developing a petroleum terminal with a planned storage capacity of 230,000 cubic metres for refined products, including petrol, diesel and kerosene, alongside facilities capable of storing 40,000 metric tonnes of liquefied petroleum gas.

The project is expected to almost double Cameroon’s existing liquid fuel storage capacity of about 245,500 cubic metres.

A second terminal is also being developed by CSTAR Tank Farm Project Management, a consortium owned by Ariana Energy, Tradex and Cameroon’s National Hydrocarbons Corporation.

The CSTAR project is expected to provide between 250,000 and 300,000 cubic metres of storage for diesel, petrol, aviation fuel, kerosene and heavy fuel oil at an estimated cost of CFA168bn.

Combined, the two projects are projected to add at least 480,000 cubic metres of liquid fuel storage capacity to the country’s downstream petroleum sector.

It was said that Dangote’s proposed facility could either complement the government’s ongoing investments or compete with them for access to port infrastructure, financing, pipeline networks and petroleum product volumes.

Cameroon’s petroleum storage business is currently dominated by the National Petroleum Storage Company, which manages the country’s fuel storage facilities, nationwide distribution network and strategic petroleum reserves.

If approved, the Dangote project would mark the group’s entry into Cameroon’s downstream petroleum sector, adding to its existing presence in the country through its cement manufacturing operations in Douala.

The proposal is the latest indication of the group’s ambition to establish a broader regional fuel distribution network anchored on its Lekki refinery, which has increasingly expanded exports to African and international markets.

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