Business
Oando’s Unaudited Profit Plunges 82% to N27.8bn Despite Production Surge in 2025
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.
Nairametrics
Chevron Nigeria won the second-best exhibitor award at the just-concluded 2026 Nigerian Association of Petroleum Explorationists (NAPE) conference and exhibition at Eko Hotels and Suites, Victoria Island, Lagos.
Biztellers reports that Olajumoke Cecilia Ajayi, FNAPE, NAPE President (2025–2026) and Managing Director/CEO of Ingentia Energies Limited, presented the award to Chevron, during the awards dinner on November 12, 2026.
The award is in recognition of Chevron’s outstanding exhibition, where visitors to its booth, particularly students, took part in Geology/Geophysics presentations and quizzes, word games, and Human Resources/Nigerian Content presentations and quizzes, with gifts for winners and participants.
Commenting on the award, the leader of the Chevron’s exhibition team, Dr. Victor Anyaegbudike, Manager Communications, Chevron companies in Nigeria and the Mid Africa Region, commended NAPE for its commitment to hosting the annual conference and exhibition. He noted that Chevron has operated in Nigeria for over 60 years, contributing to the country’s growth and development and making human investments that yield long-term, transformative returns.
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“At Chevron Nigeria, we drive innovation and investment to open up opportunities for growth, jobs, productivity and lasting value. Forums like the NAPE conference and exhibition matter because they bring government, academia, students and industry together around shared goals and a better understanding of one another,” he remarked.
Victor noted that Chevron is committed to building productive, collaborative and mutually beneficial relationships, grounded in trust, with governments, partners, customers, communities and employees. “We believe that affordable, reliable and ever-cleaner energy is vital to a more prosperous and sustainable world,” he said.
Attendees at the NAPE conference and exhibition included representatives of the Federal Government of Nigeria, industry regulators, industry leaders, academics, and students from tertiary institutions across the country.
The Nigerian Exchange Limited (NGX) recorded a 1.36 per cent weekly gain as its market capitalisation increased to ₦163.80 trillion at the close of trading on Friday, November 13, 2026.
The NGX All-Share Index (ASI) rose to 252,269.16 points, pushing the market’s year-to-date return to 62.11 per cent.
The performance reflected a positive trading week for the equities market, with 43 listed companies recording price appreciation, compared with 29 in the previous week.
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According to the Exchange’s weekly market report, investors traded 8.03 billion shares valued at ₦185.36 billion in 160,836 deals during the week.
This represented a significant increase in trading volume from the 2.83 billion shares exchanged in 192,158 deals in the preceding week, although the total value of transactions declined from ₦208.41 billion.
The Financial Services Industry dominated trading activities, accounting for 4.85 billion shares worth ₦95.79 billion. This represented 60.45 per cent of the total equity turnover volume and 51.68 per cent of turnover value.
The Agriculture Industry followed with 2.24 billion shares valued at ₦22.78 billion, while the Consumer Goods Industry recorded 260.99 million shares worth ₦11.89 billion.
Further details of the market performance showed that 39 equities declined during the week, compared with 57 in the previous week, while 64 equities closed unchanged against 60 recorded in the preceding period.
On the gainers’ chart, Champion Breweries Plc emerged as the best-performing stock, appreciating by 27.27 per cent, while LivingTrust Mortgage Bank Plc recorded the biggest loss, declining by 18.53 per cent.
Meanwhile, trading in Exchange-Traded Products (ETPs) stood at 1.21 million units valued at ₦278.97 million in 3,351 deals, compared with 1.46 million units worth ₦381.82 million in 4,085 deals in the previous week.
The fixed-income segment recorded 156,612 units valued at ₦177.88 million in 41 deals, against 21.99 million units worth ₦20.60 billion in 48 deals recorded in the preceding week.
The Exchange also recorded the listing of two commercial paper instruments issued by Thrive Agric Limited.
The instruments comprised ₦3.17 billion Series 1 (Tranche A) and ₦2.09 billion Series 1 (Tranche B) Commercial Papers, with a combined value of approximately ₦5.26 billion.
Nigeria produced a daily average of 1.687 barrels of crude oil and condensate in October 2026, and met its OPEC quota for the sixth consecutive month.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that in strict crude oil terms (excluding condensate), the country produced an average of 1.51mbpd in October.
This is 101 percent of the 1.5mbpd quota set by OPEC.
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The data, released on Wednesday, also shows that single-day production hit a peak of 1.79 million barrels, while the lowest for the month under review stood at 1.60 million bpd.
The crude oil data (excluding condensate) shows that Nigeria has met its assigned OPEC quota for six straight months, producing 1.53mobpd in May; 1.55mobpd in June; 1.51mobpd in July; 1.5mobpd in August, 1.53mobpd in September and 1.51mobpd in October.
On a month of month basis, however, production dipped by 1.7 percent.
The NUPRC attributed the stable performance in recent months to an enhanced operational stability, supported improved production uptime and crude evacuation efficiency.
The sustained growth recorded in October reflects the continued commitment of operators and industry stakeholders towards improving operational efficiency, maintaining asset integrity, and enhancing production reliability across the Nigerian upstream petroleum sector.
A breakdown of the daily average crude oil and condensate production by terminals/streams during the review month shows that Forcados Terminal accounted for 318.49kbpd while Bonny comes second with 311.02kbpd.
Qua Iboe Terminal recorded an average production of 173.97kbpd of crude oil and condensates while Escravos Oil Terminal posted a daily average of 134.67kbpd.
Bonga ranked as the fifth highest producing terminal, recording an average of 106.65kbpd of crude oil and condensate.
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