Oando PLC, Nigeria’s indigenous energy company, has released its unaudited financial results for the fiscal year 2025, revealing a mixed performance characterised by declining profitability despite increased revenue and production volumes, news.ng reports.
The company reported revenue of ₦3.213 trillion for FY 2025, representing a 21% decline from ₦4.087 trillion recorded in FY 2024.
However, the company’s gross profit experienced a sharp contraction of 82%, falling from ₦156 billion to ₦28 billion, reflecting significantly compressed margins during the period under review.
Profit after tax stood at ₦241 billion, marking a 10% increase from the previous year’s ₦220 billion. This modest gain, however, was accompanied by a 91% surge in operating losses to ₦50 billion, up from ₦570 billion in the prior period, suggesting substantial operational challenges during the year.
The company demonstrated strong operational momentum across its upstream portfolio. Total production volumes increased 52% to 12.04 million barrels of oil equivalent (MMboe), up from 7.91 MMboe in FY 2024. This growth was driven by a 30% increase in crude oil lifting to 3.95 million barrels, a 59% surge in gas sales to 44.31 MMscf, and a remarkable 650% jump in NGL sales to 0.45 MMbbl.
The operating environment remained challenging, with average realised oil prices declining 12% to $65.23 per barrel from $73.91, while average realised gas prices fell 19% to $1.73 per Mscf. The naira averaged ₦1,505 to the dollar during the period, representing a 1% depreciation from the prior year’s rate of ₦1,515.
Oando generated ₦70 billion in cash from operations, a significant reversal from the ₦223 billion cash outflow in FY 2024. The company’s cash and bank balances strengthened by 71% to ₦380 billion, while total capital expenditure surged 437% to ₦102 billion, reflecting aggressive investment in asset development and infrastructure upgrades.
According to the company’s overview, the FY 2025 performance reflects the first complete year of consolidated operations following the acquisition of NAOC JV assets in 2024. Management attributed the improved production volumes to enhanced upstream capacity, operational resilience, and infrastructure upgrades, along with the full-year impact of the expanded asset base.
The results underscore the challenges facing Nigerian oil and gas operators, who must navigate declining commodity prices, currency volatility, and substantial operational costs while pursuing growth through increased production and strategic acquisitions.
