Oando PLC reported a 32 percent year-on-year increase in upstream production for the year ended 31 December 2025, reflecting higher crude oil, gas, and natural gas liquids output following its transition from asset integration to full operational delivery. The production gains came despite a sharp decline in group revenue, as the company scaled back low-margin downstream trading activities in favour of upstream growth and higher-margin crude and gas trading.
According to the company’s unaudited full-year results, net upstream production averaged 32,482 barrels of oil equivalent per day in 2025. The increase was driven by a 36 percent rise in crude oil production to 11,269 barrels per day, a 24 percent increase in gas production to 19,982 boepd, and a 715 percent surge in natural gas liquids output to 1,231 barrels per day.
Oando attributed the stronger performance to the full-year consolidation of its interest in the Nigerian Agip Oil Company Joint Venture, improved operational uptime, and targeted infrastructure upgrades across operated assets. The company said the reactivation of previously constrained wells also contributed to higher volumes.
Operated joint venture production averaged approximately 80,545 boepd during the year, translating to 32,482 boepd net to Oando.
Despite the upstream gains, group revenue declined 21 percent to N3.21 trillion from N4.09 trillion in 2024. Gross profit fell 82 percent year on year to N27.8 billion, compared with N155.9 billion in the previous year.
The company said the decline reflected a deliberate change in revenue mix rather than weaker operational performance. During the year, Oando reduced exposure to high-volume, low-margin refined product trading, including premium motor spirit imports, amid structural changes in Nigeria’s domestic downstream market.
The rebalancing reduced topline revenue in the short term but aligned the business more closely with higher-margin crude oil and gas trading activities, as well as upstream production growth. The company also cited the impact of non-cash items on reported earnings.
Profit after tax rose 10 percent to N241.3 billion from N220.1 billion in 2024, supported by higher upstream production, impairment reversals, and favourable tax adjustments. The increase in profit despite lower revenue underscores the impact of margin-focused portfolio adjustments and cost discipline, the company said.
Group Chief Executive Officer of Oando PLC, Wale Tinubu, said 2025 marked a turning point for the company following the completion of post-acquisition integration of the NAOC Joint Venture.
“2025 was a year of relentless execution as we successfully transitioned from integration into operational delivery,” Tinubu said. “We reinforced asset integrity, strengthened security across our operating areas, and materially improved uptime, delivering a 32 percent year-on-year increase in total production.”
Tinubu said crude oil liftings increased by 30 percent during the year, while gas sales volumes rose by 59 percent, reflecting improved field performance and market access.
As part of its upstream growth strategy, Oando launched a development drilling programme with the successful completion and start-up of the Obiafu-44 gas-condensate well. The well is the first in a planned 36-well development programme aimed at restoring field deliverability, unlocking incremental production, and supporting medium-term growth.
The company said the broader programme is designed to revive mature assets, optimise existing infrastructure, and expand gas output to meet rising domestic demand and export opportunities.
Within its trading business, Oando recorded a 42 percent increase in crude oil cargoes traded during the year. The company traded 26 crude oil cargoes, representing 29.4 million barrels, compared with 21 cargoes totalling 20.7 million barrels in 2024.
The increase reflects Oando’s expanded presence in international crude trading and its use of structured offtake arrangements and pre-export financing solutions to support liquidity and cash flow resilience. The company said these structures also supported effective production monetisation for clients.
However, Oando deliberately paused premium motor spirit trading during the year, citing evolving dynamics in Nigeria’s downstream sector following deregulation and changes in domestic refining capacity. While the decision reduced reported earnings in the short term, the company said it supports longer-term margin quality and capital efficiency.
“In our downstream trading business, we responded decisively to market changes by rebalancing our portfolio away from gasoline importation toward higher-margin crude and gas opportunities,” Tinubu said.
Capital expenditure increased significantly from 2024 levels, reflecting higher investment in upstream development, facility integrity, and infrastructure optimisation. Oando described the spending as strategic, noting that sustainable production growth and revenue generation depend on asset reliability, security, and efficient infrastructure.
The company said the higher capital outlay signals a shift toward long-term value creation following the completion of its acquisition and integration phase.
As part of its cost optimisation efforts, Oando realised $17.7 million in savings during the year through contract renegotiation and disciplined operating input management. The savings contributed to improved cost efficiency across key operational areas.
During the period, retained earnings returned to a positive position, reflecting non-cash intra-group balance sheet realignments linked to ongoing capital restructuring. The company said these adjustments strengthened its balance sheet and improved financial resilience.
Analysts note that Oando’s 2025 results highlight a broader transition within the company, from asset acquisition and integration toward full operatorship and production-led growth. The results also reflect a shift away from revenue scale toward margin quality, a strategy increasingly adopted by energy companies operating in volatile commodity and regulatory environments.
Looking ahead, Tinubu said the company’s focus in 2026 will be on disciplined execution of its development programme, accelerating production growth, strengthening cash generation, and enhancing long-term value.
“With operational control firmly embedded and the foundations for growth established, our priority is diligent execution to unlock the full potential of our assets,” he said.
Oando said it will continue to allocate capital prudently, deepen operational resilience, and build on the momentum achieved in 2025 as it positions itself for the next phase of growth in Nigeria’s energy sector.