Revenue increases to N933bn, oil production rises 132%
Emmanuel Addeh in Abuja
Oando, one of Africa鈥檚 leading indigenous energy solutions providers, has ended the first quarter of the year on a high, with the publication of N933 billion revenue in its Q1 2025 unaudited results.
This performance comes in the wake of its recent release of its 2024 full year audited financial statement, where it reported a 44 per cent year-on-year revenue increase to N4.1 trillion compared to N2.9 trillion in 2023 and a 267 per cent increase in Profit-After-Tax (PAT) to N220 billion.
Oando, which keyed into the recent International Oil Companies (IOCs) divestment of onshore assets, the results showed, has begun reaping the gains of its acquisition of Nigerian Agip Oil Company (NAOC) from Italian oil giant, Eni.
An analysis of Oando鈥檚 financials showed that the company鈥檚 turnover grew by 2 per cent year-on-year to N933 billion in Q1 2025 compared to N915 billion in Q1 2024.
Additionally, the company posted a 172 per cent increase of N85 billion in gross profit in Q1 2025 compared to N31 billion in Q1 2024, reflecting stronger Exploration & Production margins.
In its upstream business, crude oil production rose 132 per cent to 11,369 bpd, gas volumes grew by 56 per cent to 25,185 boepd, and Natural Gas Liquids (NGL) production increased 30 per cent to 1,040 bpd.
Besides, the company recorded zero lost-time injuries (LTIs) and 12.3 million LTI-free hours, underscoring continued Health, Safety and Environment (HSE) excellence. In addition, the company achieved average daily production of 37,595 bpd (within guidance), up 72 per cent year-on-year, driven by the full consolidation of NAOC assets and well reactivations.
In the same vein, the company was recently awarded operatorship of Block KON 13 in Angola, marking its strategic entry into the Kwanza Basin, Angola and expanding Oando鈥檚 African upstream footprint.
Speaking on the Q1, 2025 financial results, the Group Chief Executive, Oando Plc, Wale Tinubu, said: 鈥淨1 2025 marked a strong start to the year for us, with a 72 per cent 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.
鈥淏eyond Nigeria, we have expanded our regional presence with our entry into Angola鈥檚 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.鈥
In its downstream trading business, Oando Trading reported six crude oil cargos (5.96 MMbbl) traded in Q1 2025, up from four cargos (4.86 MMbbl) in Q1 2024, driven by stronger offtake execution.
In its renewable energy business, Oando Clean Energy (OCEL) recorded 53,941 EV rides in Q1 2025 and 42,779 kg of CO2 emissions averted through two operational e-buses under the electric mobility programme operating in Lagos.
It also successfully published Nigeria鈥檚 National Wind Resource Capacity Report, identifying state-level wind potential across the country.
Speaking on the outlook for 2025, Wale Tinubu, commented: 鈥淔ollowing a transformative 2024, our priority is to maximise the value of our expanded upstream portfolio through targeted infrastructure upgrades, rigless well interventions and an extensive drilling programme in the second half of the year.
鈥淭hese 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.鈥
Oando said it is targeting a full-year production of 30鈥40 kboepd maintained, driven by a balanced capital programme of three new wells, nine workovers, and six rigless interventions.
The company is also projecting capex of $250鈥270 million focused on drilling, infrastructure, and ESG projects, with a 20 per cent cost reduction goal. The company has set a trading guidance for its trading subsidiary of 25鈥35 MMbbl crude oil and 750,000鈥1,000,000 MT refined products.
For its renewable energy arm, Oando said it is targeting the deployment of 50 electric buses and progressing its solar PV module assembly plant toward Final Investment Decision (FID).
These plans, it said, are strengthened by the company鈥檚 recent announcement of the successful upsizing of its reserve-based lending (RBL2) facility to $375 million. According to the company, this critical financing will significantly improve the company鈥檚 ability to achieve its production target of 100,000 barrels of oil per day and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029.
鈥淭hese Q1 2025 results reinforce the growing momentum among indigenous operators in Nigeria鈥檚 upstream sector, who are beginning to demonstrate operational efficiency and financial resilience following recent asset acquisitions.
鈥淲ith a 2 per cent rise in revenue, a remarkable 172 per cent surge in gross profit to N85 billion, and a 72 per cent increase in average daily production, all within guidance, Oando鈥檚 performance signals not just the viability of the transition from IOC to indigenous ownership, but also the increasing capacity of local players to deliver value and drive long-term growth in Nigeria鈥檚 energy landscape,鈥 the energy firm stated.