Wale Tinubu’s Oando Grows Profit Ten Percent in 2025

Oando Plc closed the 2025 financial year with stronger earnings as upstream production gains helped offset lower revenue from a strategic shift in its trading business.

The energy group reported a profit after tax of N241.8 billion for the year ended December 31, 2025, a 10 percent increase from N220.1 billion recorded in 2024, according to its unaudited results. Management said the improvement was supported by higher production volumes, impairment reversals and favorable tax adjustments.

Revenue fell to N3.21 trillion in 2025 from N4.09 trillion a year earlier, while gross profit declined sharply to N27.8 billion from N155.9 billion. The company said the drop reflected changes in its revenue mix as it reduced exposure to high turnover but lower margin refined product trading and focused more on crude oil and gas opportunities with stronger margins.

Upstream operations were the standout performer during the year. Average production rose 32 percent year on year to 32,482 barrels of oil equivalent per day. Crude oil output increased 36 percent to 11,269 barrels per day, gas production climbed 24 percent to 19,982 barrels of oil equivalent per day, while natural gas liquids surged by more than sevenfold to 1,231 barrels per day.

Oando attributed the production growth to the full year consolidation of its Nigerian Agip Oil Company joint venture interest, improved operational uptime from reactivated wells and targeted infrastructure upgrades across operated assets.

Group Chief Executive Officer Wale Tinubu said 2025 marked a shift from integration to execution following the acquisition of the joint venture assets.

He said the company strengthened asset integrity and security across its operating areas, leading to improved uptime and higher production. Operated joint venture production averaged about 80,545 barrels of oil equivalent per day, translating to 32,482 barrels net to Oando. Crude oil liftings increased by 30 percent, while gas sales volumes rose 59 percent during the year.

Tinubu said the company also launched its development drilling program with the completion and startup of the Obiafu 44 gas condensate well. The well is the first milestone in a planned 36 well program aimed at restoring field deliverability and unlocking incremental production.

Within trading, Oando recorded a 42 percent increase in crude oil cargos traded, rising to 26 cargos totaling 29.4 million barrels, compared with 21 cargos in 2024. The group paused premium motor spirit trading during the year in response to structural changes in Nigeria’s downstream market, a move management said reduced short term earnings but improved capital efficiency.

Capital expenditure rose significantly as Oando invested more in upstream development, facility integrity and infrastructure optimization. The company also reported 17.7 million dollars in cost savings through contract optimization and said retained earnings returned to positive territory following balance sheet realignments.

Tinubu said the company is now focused on disciplined execution of its development program to accelerate production growth, strengthen cash generation and build long term value in 2026.