Oando profit falls 65% as revenue drops to N3.18tn

By Abubakar Yunusa

Oando Plc posted a pre-tax profit of N135.76bn for the 2025 financial year, representing a 64.6 per cent decline from N383.27bn recorded in 2024, as weaker revenue and rising liabilities weighed on the company’s performance.
The audited full-year results filed with the Nigerian Exchange on showed that revenue fell by 22.2 per cent to N3.18tn from N4.09tn in the previous year.
The company also slipped into a gross loss of N2.76bn, compared with a gross profit of N93.34bn in 2024, as the cost of sales slightly exceeded revenue during the period.
Operating profit dropped by 57.7 per cent to N240.96bn from N569.68bn, while other operating income plunged by 81.5 per cent to N203.79bn, reducing support for earnings.
Despite the decline in pre-tax profit, profit after tax stood at N204.81bn, down seven per cent from the previous year, aided by an income tax credit of N69.05bn. Earnings per share also improved to 23 kobo from 18 kobo.
In a statement accompanying the results, the Group Chief Executive, Wale Tinubu, described the 2025 financial year as a defining period following the acquisition of the Nigerian Agip Oil Company Joint Venture assets.
He said the company had shifted its attention from integration to operatorship, operational efficiency and value creation across its expanded portfolio.
Tinubu noted that the successful completion of the Obiafu-44 well demonstrated the capacity of indigenous operators to execute complex oil and gas development projects efficiently and safely.
Oando recorded an average production of 32,482 barrels of oil equivalent per day during the year, representing a 32 per cent increase driven by higher crude oil, gas and natural gas liquids output following the full consolidation of the NAOC Joint Venture assets.
Finance costs climbed sharply to N394.69bn from N235.84bn, reflecting increased borrowing costs, although finance income surged by more than 510 per cent to N288.03bn, helping to reduce net finance costs.
The balance sheet showed total assets rising to N7.45tn, supported by stronger current assets, including trade receivables of N2.19tn and cash holdings of N439.88bn.
However, total liabilities also increased to N8.01tn from N6.80tn, driven by trade payables and current borrowings.
The company ended the year with a negative shareholders’ equity of N566.97bn, compared with a deficit of N360.98bn in 2024, indicating that its liabilities continued to exceed its assets.
Oando also disclosed that it invested $36.9m in field development, infrastructure upgrades and exploration activities during the financial year.