Oando PLC, one of Africa’s foremost indigenous energy solutions providers, has reported N933 billion in revenue and a 172% year-on-year increase in gross profit in its unaudited Q1 2025 financial results, signaling continued momentum in its post-acquisition growth phase.
The figures reflect a gross profit of N85 billion, compared to N31 billion in Q1 2024, driven largely by improved upstream margins and production gains following the integration of the Nigerian Agip Oil Company (NAOC) assets.
This performance follows closely on the heels of Oando’s full-year 2024 audited results, which recorded a 44% revenue growth to N4.1 trillion, up from N2.9 trillion in FY 2023, and a 267% jump in profit-after-tax to N220 billion.
The company’s Q1 turnover rose 2% from N915 billion in the same period last year, while its upstream segment posted significant production gains.
Crude oil output rose by 132% to 11,369 barrels of oil per day (bopd), gas production increased by 56% to 25,185 barrels of oil equivalent per day (boepd), and natural gas liquids output grew 30% to 1,040 barrels per day.
Overall, average daily production reached 37,595 boepd, an increase of 72% year-on-year, within company guidance.
These gains were driven by the full consolidation of NAOC assets and reactivation of previously shut-in wells.
Wale Tinubu, CON, Group Chief Executive of Oando PLC, said, “Q1 2025 marked a strong start to the year for us, with a 72% year-on-year increase in production volumes as a result of the successful integration of the NAOC assets into our portfolio, improved asset reliability and the reactivation of shut-in wells, reflecting early wins from our focus on operational efficiency and disciplined execution.
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“Beyond Nigeria, we have expanded our regional presence with our entry into Angola’s Kwanza Basin, marking a major milestone in scaling our upstream footprint across Africa. Similarly, being named preferred bidder for the Guaracara Refinery in Trinidad and Tobago demonstrates the strength of our integrated business model, our growing role in the Afro-Caribbean landscape, and a reflection of our evolution into a more geographically diversified energy company.”
Oando’s upstream expansion was further underscored by its award of operatorship for Block KON 13 in Angola, its first entry into the Kwanza Basin.
On the safety front, the company recorded zero lost-time injuries and achieved 12.3 million LTI-free hours, continuing its strong health, safety, and environmental (HSE) performance.
The company’s downstream trading arm also posted stronger offtake execution, with six crude oil cargoes (5.96 million barrels) traded in Q1 2025, up from four cargoes (4.86 million barrels) in the same quarter last year.
In the renewable energy space, Oando Clean Energy Limited (OCEL) recorded 53,941 electric vehicle rides and helped avert 42,779 kilograms of CO₂ emissions during the quarter through its e-mobility programme in Lagos, which currently operates two electric buses.
OCEL also published Nigeria’s National Wind Resource Capacity Report, identifying state-level wind generation potential.
Speaking on the company’s outlook for the rest of the year, Tinubu stated, “Following a transformative 2024, our priority is to maximize the value of our expanded upstream portfolio through targeted infrastructure upgrades, rig-less well interventions and an extensive drilling programme in the second half of the year. These activities are now enabled by the working capital we have secured, giving us financial flexibility to accelerate execution. We are also taking decisive action to restructure our balance sheet towards restoring financial resilience.”
Oando has set a full-year production target of 30,000 to 40,000 boepd, supported by a capital programme of three new wells, nine workovers, and six rig-less interventions.
It plans to invest $250–$270 million in capital expenditures, with 20% in cost-saving targets and a focus on drilling, infrastructure, and ESG initiatives.
The company also issued trading guidance for 25–35 million barrels of crude and 750,000 to 1,000,000 metric tonnes of refined products.
In renewables, it aims to deploy 50 electric buses and progress toward Final Investment Decision on its solar PV module assembly plant.
These plans are supported by the company’s recently upsized reserve-based lending facility (“RBL2”), which now stands at $375 million.
This funding is expected to significantly advance Oando’s longer-term production goal of 100,000 bopd and 1.5 billion standard cubic feet of gas per day by 2029.
The Q1 results further affirm the broader shift in Nigeria’s oil and gas sector, where indigenous players are beginning to reap tangible financial and operational benefits from the divestment of onshore assets by international oil companies.
Alongside peers like Seplat and Aradel, who reported Q1 revenues of N1.228 trillion and N199.9 billion respectively, Oando’s 172% jump in gross profit and rising output reinforces the growing role of Nigerian firms in driving the industry’s future.
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Image Credit: MarketForces Africa
