Oando, one of Africa’s foremost indigenous energy companies, has reported remarkable financial results for the first quarter of 2025, showing a significant 172% increase in gross profit. The company posted a revenue of ₦933 billion in Q1 2025, an uptick of 2% from ₦915 billion in the same period last year. This stellar performance is a direct result of successful operational efficiencies, the full integration of the Nigerian Agip Oil Company (NAOC) assets, and strategic well reactivations.
Key Highlights:
- Revenue Growth: Oando reported a modest 2% increase in turnover, generating ₦933 billion in Q1 2025 compared to ₦915 billion in Q1 2024.
- Gross Profit Surge: A 172% rise in gross profit was achieved, climbing from ₦31 billion in Q1 2024 to ₦85 billion in Q1 2025, reflecting enhanced exploration and production (E&P) margins.
- Record Production: The company’s crude oil production soared by 132%, reaching 11,369 barrels per day (bopd), while gas production increased by 56%, amounting to 25,185 barrels of oil equivalent per day (boepd).
- Health and Safety Excellence: Oando recorded zero lost-time injuries (LTIs) and achieved 12.3 million LTI-free hours, marking a strong commitment to health, safety, and environmental (HSE) standards.
Oando’s upstream business saw robust performance with increased production in oil, gas, and natural gas liquids (NGL). Additionally, the company expanded its geographical footprint, securing operatorship of Block KON 13 in Angola’s Kwanza Basin, a strategic move aimed at enhancing Oando’s upstream assets across the African continent.
Wale Tinubu, Oando’s Group Chief Executive, commented on the results, noting, “Q1 2025 marked a strong start to the year for us, with a 72% year-on-year increase in production volumes. The successful integration of the NAOC assets into our portfolio and our operational efficiency focus has driven these early wins.”
Expansion Beyond Nigeria
Beyond Nigeria, Oando is expanding its regional presence. The company made strides in its international growth by securing preferred bidder status for the Guaracara Refinery in Trinidad and Tobago. This acquisition aligns with the company’s integrated business model and demonstrates its evolving role in the Afro-Caribbean energy sector.
Sustainability and Renewable Energy
Oando is also making significant strides in the renewable energy space. Its subsidiary, Oando Clean Energy (OCEL), reported a 53,941 EV rides in Q1 2025, marking a notable achievement in reducing CO2 emissions through its electric mobility programme in Lagos. Additionally, OCEL successfully published Nigeria’s National Wind Resource Capacity Report, which provides insights into the country’s state-level wind energy potential.
Outlook for 2025
Looking ahead, Oando is focused on maximizing the potential of its expanded upstream portfolio. The company plans significant infrastructure upgrades, an extensive drilling programme, and continued investment in energy diversification. Oando is targeting a full-year production rate of 30–40 kboepd and has set aside a capex budget of $250–270 million for drilling, infrastructure, and environmental, social, and governance (ESG) projects.
Wale Tinubu further commented, “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.”
Oando’s renewable energy projects, including the deployment of 50 electric buses and progress on its solar PV module assembly plant, reflect the company’s commitment to long-term sustainability and energy transition.