Wrap Text
Full-Year 2025 Unaudited Results
Oando PLC
(Incorporated in Nigeria and registered as an external
company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
("Oando" or the "Company")
Full-Year 2025 Unaudited Results
Lagos, Nigeria | 1 February 2026- Oando PLC ("Oando" or the "Group"), Nigeria's leading
indigenous energy group listed on both the Nigerian Exchange Ltd. and Johannesburg Stock
Exchange, today announces its unaudited results for the full year ended 31 December 2025.
Commenting on the results, Wale Tinubu CON, Group Chief Executive, Oando PLC, said:
"2025 was a year of relentless execution as we successfully transitioned from the integration of the
NAOC Joint Venture into operational delivery.
Over the year under review, we reinforced asset integrity, strengthened security across our
operating areas and materially improved uptime, delivering a 32% year-on-year increase in total
production. Operated Joint Venture production averaged approximately 80,545 boepd, translating to
32,482 boepd net to Oando, alongside a 30% increase in crude oil liftings and a 59% increase in
gas sales volumes.
Building on this foundation, we launched our development drilling programme with the successful
completion and start-up of the Obiafu-44 gas-condensate well. This well represents the first
execution milestone within a phased 36-well development programme, designed to restore field
deliverability, unlock incremental production and advance the Group's medium-term growth
objectives.
In our downstream trading business, we responded decisively to evolving market dynamics by
deliberately rebalancing our portfolio away from gasoline importation toward higher-margin crude
and gas opportunities. We expanded global exports and leveraged structured offtake and pre-export
financing arrangements to support liquidity, cash-flow resilience and effective production
monetisation for our clients.
With operational control firmly embedded and the foundations for growth clearly established, our
focus is on the diligent execution of our development programme to accelerate production growth,
strengthen cash generation and enhance long-term value creation. As we enter 2026, we will
continue to allocate capital prudently, deepen operational resilience and build on the momentum
achieved."
Group Overview
The Group operates an integrated energy platform centred on upstream oil and gas production and
trading, which together drive cash generation and balance sheet strength. These core businesses are
supported by disciplined capital allocation, infrastructure optimisation, and structured financing
capabilities.
During FY 2025, the Group transitioned from post-acquisition integration to operational execution,
delivering improved production performance, stronger uptime, and enhanced commercial flexibility.
With operatorship embedded and cash generation improving, capital is being prioritised toward
sustaining and growing upstream production and optimising trading activities that support liquidity and
production monetisation.
Selected energy transition and mining initiatives are being progressed on a phased and capital-
disciplined basis and remain secondary to the Group's near- and medium-term focus on strengthening
core earnings, accelerating production growth, and enhancing financial resilience.
Full-Year 2025 performance highlights
Group highlights
• Revenue declined 21% year-on-year to N3.21 trillion (FY 2024: N4.09 trillion), reflecting a
deliberate reduction in lower-margin refined-product trading amid structural changes in the
domestic downstream market, partly offset by higher upstream production volumes.
• Gross profit decreased 82% year-on-year to N27.8 billion (FY 2024: N155.9 billion), driven by
the change in revenue mix following reduced trading volumes and the impact of non-cash
items, notwithstanding materially higher upstream output.
• Profit after tax increased 10% year-on-year to N241.3 billion (FY 2024: N220.1 billion),
supported by higher upstream production, impairment reversals, and favourable tax
adjustments.
• Capital expenditure increased to N101.9 billion (FY 2024: N18.5 billion), reflecting increased
investment in upstream development, facility integrity, and infrastructure optimisation following
the assumption of operatorship.
• Operating cash flow improved materially year-on-year, reflecting enhanced cash conversion,
and improved working capital management.
Exploration and Production
• Group production averaged 32,482 boepd in FY 2025, up 32% year-on-year, driven by the
full-year consolidation of the NAOC JV interest and improved operational uptime.
• Crude oil, gas, and NGL output increased year-on-year, supported by asset optimisation
initiatives and the successful revamp of the NGL processing plant.
• Completed the Obiafu-44 gas-condensate well and progressed targeted facility
debottlenecking to enhance flow assurance and production stability.
• Maintained strong safety performance, recording zero fatalities and zero lost-time injuries
during the year.
• Advanced regional expansion, with award of operatorship and a 45% participating interest in
Block KON-13, Angola (PSC in advanced approval stages).
Trading
• Traded 26 crude oil cargos (29.4 MMbbl) in FY 2025, up 42% year-on-year, reflecting stronger
execution across core crude trading routes.
• Paused PMS trading activities in response to structural shifts in domestic supply dynamics,
reallocating focus toward higher-margin crude and gas trading opportunities.
• Strengthened liquidity management through structured pre-financing and offtake
arrangements, supporting working capital flexibility and cash-flow resilience.
• Selected as preferred bidder for the Guaracara Refinery (Trinidad & Tobago), providing
strategic downstream optionality in the Caribbean market.
Portfolio Updates
• Progressed selected clean energy and mining initiatives on a phased, capital-disciplined
basis, with focus on electric mobility operations, regulatory positioning, and early-stage
technical evaluation.
Strategic Priorities
• Sustain production and operational stability through continued asset optimisation.
• Maintain capital discipline with focus on asset integrity and operational resilience.
• Strengthen balance sheet and liquidity through disciplined capital allocation.
• Scale trading platform to support cash flow resilience and market access.
• Advance selected transition and mining initiatives on a phased, capital-disciplined basis.
Responsibility for publication
This announcement has been authorised for publication on behalf of Oando PLC by:
Adeola Ogunsemi,
Group Chief Financial Officer
About Oando PLC
Oando PLC is Africa's leading indigenous energy solutions provider, listed on the Nigerian Exchange
(NGX) and the Johannesburg Stock Exchange (JSE). Oando operates across the energy value chain,
encompassing upstream exploration and production, trading, and renewable energy initiatives.
Through its subsidiaries, Oando Energy Resources and Oando Trading, the Company holds interests
in onshore and offshore oil and gas assets and maintains a significant presence in global energy
trading. Oando is committed to driving Africa's energy transition and delivering innovative,
sustainable, and value-driven solutions that meet the continent's unique energy needs.
For more information, visit oandoplc.com
Follow Oando on LinkedIn: https://www.linkedin.com/company/oando-plc/
X: https://x.com/Oando_PLC
Enquiries +234 (1) 2704000
Adeola Ogunsemi / Group Chief Financial Officer
Folashade Ibidapo-Obe / Chief Compliance Officer & Company Secretary
Ayeesha Aliyu / Investor Relations Manager
Disclaimer- forward-looking statements
This results release contains forward-looking statements regarding the operations, financial condition, strategy,
and prospects of Oando PLC ("the Group"). These statements are based on current expectations and
assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. Such
risks include, but are not limited to, market conditions, regulatory developments, geopolitical events, operational
challenges, and the Group's ability to implement key initiatives, including its capital restructuring, energy
transition, and diversification strategy. Readers are cautioned to carefully consider the foregoing factors and
other uncertainties, and not to place undue reliance on forward-looking statements. Forward-looking statements
apply only as of the date on which they are made, and the Group undertakes no obligation to update or revise
any forward-looking statements, except as required by applicable laws and regulations.
Operations Review
E&P Business Overview
The E&P business delivered a step-change in operational performance in FY 2025, reflecting the first
full year of consolidated operations following the acquisition of the NAOC JV assets in 2024. The
assumption of operatorship enabled tighter execution discipline, improved operational control, and
more responsive decision-making across the expanded asset base. These factors supported higher
production volumes, improved reliability, and strengthened the foundation for medium-term production
growth and capital efficiency.
Production Unit FY 2025 FY 2024 %Change
Crude Oil bopd 11,269 8,301 36%
Gas boepd 19,982 16,085 24%
NGLs bpd 1,231 151 715%
Total boepd 32,482 24,537 32%
Opex $/boe 24.9 20.6 21%
1. Production in 2025 comprises Oando's 40% working interest (WI) in OMLs 60,61,62,63, 40% WI in Qua Ibo Marginal
Field, and 45% WI in Ebendo Marginal Field.
2. Volumes are subject to reconciliation and may differ from liftings within the period.
3. Gas production volumes reflect the total quantity of gas produced during the period, inclusive of volumes utilised for
operations or reinjection.
4. Gas volumes converted to barrels of oil equivalent using a standard conversion factor of 5.8 mscf per boe
5. Opex/boe reflects full-year operator costs, including logistics, maintenance, regulatory levies, and HSE-related
expenses.
Group Production Performance
Group production averaged 32,482 boepd in FY 2025, representing a 32% year-on-year increase,
driven by higher output across crude oil, gas, and NGLs and the full-year impact of the NAOC JV
consolidation. Production growth was supported by improved facility availability, the reactivation of
previously constrained wells, and targeted infrastructure upgrades across operated assets.
During the year, production was temporarily impacted by gas-related shut-ins in the fourth quarter,
resulting in deferred volumes. All affected operations were restored within the year, with no impact on
long-term asset integrity or underlying production capacity.
Crude oil output increased materially following the restoration of shut-in wells and improved flow
assurance, while gas production recorded solid year-on-year growth despite the temporary fourth-
quarter disruptions. NGL volumes increased significantly following the successful revamp of the NGL
processing plant, which enhanced recovery efficiency across the portfolio.
Production Expenses
Production operating expenses averaged $24.9/boe in FY 2025, compared with $20.6/boe in FY
2024, representing a 21% year-on-year increase. The increase reflects the higher operating cost base
following the consolidation of additional assets, increased maintenance activity and staffing costs
associated with operated assets, as well as inventory and cost reversals recognised during the year.
These were partly offset by cost recoveries and operational efficiencies. Management remains
focused on cost optimisation and improved uptime to moderate unit costs over time.
Drilling and field optimisation activities
The Group advanced its upstream optimisation agenda during the year through targeted restoration
projects, rig-less interventions, and surface-facility enhancements to sustain production stability.
Preparations for the 2025 drilling programme progressed during the year; however, timelines were
adjusted due to limited rig availability following increased activity levels across the domestic industry.
The revised programme targeted two wells in 2025: the Obiafu-44 gas-condensate well, which was
successfully completed and brought onstream in October, and a second well initially scheduled to
spud before year-end.
In light of prevailing rig constraints, remaining workovers and development drilling have been deferred
to 2026 to ensure disciplined capital deployment, efficient sequencing, and optimal resource
allocation.
Cost Efficiency
The Group maintained a strong focus on operating discipline during the year. Contract optimisation
initiatives delivered approximately $17.7 million in savings across key operating inputs, supporting
margin resilience and aligning the cost base with operational priorities.
Vendor Audit Reconciliation
Following the assumption of operatorship, the Group initiated a comprehensive vendor audit and
reconciliation process to address inherited liabilities associated with the NAOC JV assets. The
process is substantially advanced, with several payments concluded and remaining balances
expected to be finalised as the process moves toward completion.
Asset-Level Performance
OMLs 60–63 (40% WI, Operator)
Production from OMLs 60–63 averaged 29,733 boepd in FY 2025, compared with 21,301 boepd in
FY 2024, reflecting the additional 20% working interest acquired through the NAOC transaction and
improved operational performance during the year.
OML 56 – Ebendo (45% WI)
Average daily production declined to 2,379 boepd in FY 2025 (FY 2024: 2,825 boepd), reflecting the
temporary shut-in of the Ebendo North field between February and April 2025 pending regulatory
approval for full-field development.
OML 13 – Qua Ibo (40% WI)
Production averaged 370 bopd in FY 2025, compared with 411 bopd in FY 2024, primarily reflecting
natural field decline. Planned drilling of one new development well in December 2025 is scheduled
for early 2026, following adjustments to the drilling programme and rig availability, to support
production volumes.
Entry into Angola – Block KON 13
In January 2025, Oando Energy Resources was awarded operatorship and a 45% participating
interest in Block KON-13 in Angola's Onshore Kwanza Basin. During the year, the Production Sharing
Contract (PSC) was negotiated with the National Agency of Oil, Gas & Biofuels (ANPG) and approved
by the government of Angola. A Presidential Decree has been published in the public gazette, and
execution of the PSC is expected shortly. Upon execution, the contractor group, led by Oando, will
proceed with exploration planning activities.
Pipeline Integrity and Incident Response
During the year, the Group recorded isolated pipeline sabotage incidents, which were addressed
promptly through established emergency response protocols. Joint Investigation Visits (JIVs) with
regulators confirmed third-party interference, and repairs were completed without a prolonged impact
on production.
Enhanced surveillance, infrastructure security, and stakeholder engagement continue to form part of
the Group's ESG and operational risk management framework.
People and integration
Workforce stability was maintained during the year, with employee attrition remaining below 5%,
reflecting effective organisational integration following the NAOC acquisition. Core human capital
management processes were successfully integrated and automated, strengthening governance,
improving data integrity, and supporting operational efficiency.
Community and Social Performance
The Group continued to support host community development across its operating areas, with
aggregate Host Community Development Trust (HCDT) contributions of approximately N11 billion
remitted to date. Community-led development initiatives progressed across multiple host
communities, reinforcing the Group's social licence to operate and supporting stable operation.
Safety, Security, and Operational Risk
The Group continued to prioritise safe and reliable operations. Enhanced security measures
implemented across core operating areas contributed to a material reduction in security-related
incidents, supporting operational continuity and mitigating disruption risks.
HSE Performance
FY 2025 FY 2024
Fatalities (FAT) 0 0
Lost Time Injuries (LTI) 0 1
Medical Treatment Cases (MTC) 1 3
TRIR 0.05 0.19
LTIF 0.00 0.05
Near misses 34 34
Hours worked (million) 20.3 20.7
Oando sustained strong HSE performance in FY 2025, recording zero fatalities and zero lost-time
injuries, consistent with the prior year. The Total Recordable Incident Rate (TRIR) improved to 0.05
from 0.19 in FY 2024, reflecting continued enhancement in safety culture and proactive risk
management. Medical Treatment Cases (MTC) reduced to one, compared with three in the prior
year. Near misses remained stable at 34, while total hours worked declined marginally to 20.3
million from 20.7 million in FY 2024.
Trading Business Overview
The Trading Division operates as a commercial platform focused on crude oil and gas trading,
providing liquidity support, production monetisation, and cash flow resilience across commodity
cycles.
Traded Volumes Unit FY 2025 FY 2024 %Change
Crude Oil MMbbl 29.4 20.7 42%
Refined Products kMT - 599 nm
Trading performance
In FY 2025, the Trading Division delivered improved execution across its core crude trading activities
amid a shifting domestic downstream landscape. A total of 26 crude oil cargos (29.4 MMbbl) were
traded during the year, representing a 42% increase year-on-year (FY 2024: 21 cargos; 20.7 MMbbl),
reflecting stronger operational delivery and expanded participation in international crude markets.
During the year, the Division deliberately paused premium motor spirit (PMS) trading in response to
structural changes in Nigeria's refined-product supply dynamics and evolving market economics. As
domestic refining capacity expanded, the trading portfolio was rebalanced toward higher-margin
crude and gas trading opportunities, improving capital efficiency while preserving flexibility to re-enter
refined-product markets as conditions stabilise.
Strategic developments
In February 2025, Oando Trading Division was selected as preferred bidder for the lease of the
Guaracara Refinery in Trinidad & Tobago, providing downstream optionality in the Caribbean market.
The preferred bidder status was reaffirmed by the newly appointed government in July 2025, with
stakeholder engagements ongoing to define the commercial and operational framework for the next
phase of the project.
Clean Energy Update
During the year, Oando Clean Energy Limited (OCEL) continued to manage its clean energy portfolio
through a phased and capital-disciplined approach, with primary focus on sustaining operations within
its electric mobility platform. The electric bus fleet and associated grid-based charging infrastructure
remained stable and fully operational, supporting continued ridership growth and reinforcing
confidence in electric mobility solutions.
Beyond electric mobility, OCEL continued limited preparatory work across selected renewable and
circular economy initiatives, including solar module assembly, PET recycling, and geothermal power;
focusing on technical readiness, regulatory positioning, and partner engagement. These initiatives
remain at an early stage of development and are being advanced selectively, in line with funding
availability and market conditions.
OCEL's clean energy initiatives are being progressed as long-term strategic options, aligned with the
Group's broader energy transition objectives and capital allocation priorities
Mining Update
During the year, the Group continued to advance its mining portfolio selectively, positioning the
business to participate in Nigeria's emerging critical minerals value chain over the longer term.
Regulatory and partnership initiatives progressed, including the execution of a production sharing
arrangement with Kebbi State covering gold and lithium assets.
Exploration activities across the portfolio remained early-stage, with technical evaluations supported
by the engagement of experienced local geologists. All mining activities are being progressed on a
phased and capital-disciplined basis, with focus on technical validation, regulatory alignment, and
preservation of balance sheet flexibility.
Group Strategic Priorities
As the Group completes its full-year close and audit process, management remains focused on
consolidating recent operational gains, strengthening the balance sheet, and executing a disciplined
capital allocation strategy.
Operational priorities include sustaining production performance through continued asset
optimisation, enhancing operational reliability, and advancing targeted drilling and infrastructure
initiatives to improve field deliverability and reserve conversion. Capital deployment will remain
focused on maintaining asset integrity, optimising production systems, and supporting initiatives that
enhance operational resilience.
In parallel, the Group will continue to scale its trading platform to strengthen liquidity, support cash
flow resilience, and expand market access through disciplined use of structured financing, selective
geographic diversification, and robust risk management. The Group will also progress selected energy
transition and mining initiatives through phased, capital-disciplined execution, prioritising projects with
clear long-term value potential and alignment with funding availability, regulatory progress, and
partner engagement.
Financial review
unit FY 2025 FY 2024 %Change
1
Revenue N'billion 3,213 4,087 (21)%
Crude proceeds N'billion 305 283 8%
Gas proceeds N'billion 106 85 25%
NGL proceeds N'billion 4 0.4 900%
Trading operations N'billion 2,728 3,693 (26)%
Gross Profit N'billion 28 156 (82)%
Operating (Loss)/Profit N'billion 50 570 (91)%
Income tax credit/ (expense) N'billion 226 (164) nm
Profit-After-Tax N'billion 241 220 10%
EPS N 30 18 67%
Cash /(used in) generated from N'billion 70 (223) nm
operations2
Cash and bank balance2 N'billion 380 222 71%
Total Capex3 N'billion 102 19 437%
Crude oil lifting MMbbl 3.95 3.04 30%
Gas sales4 MMscf 44.31 27.90 59%
NGL sales MMbbl 0.45 0.06 650%
Total MMboe 12.04 7.91 52%
Average Realized Oil Price $/bbl 65.23 73.91 (12)%
Average Realized Gas Price $/Mscf 1.73 2.14 (19)%
Average Realized NGL Price $/bbl 6.78 4.31 57%
Exchange rate (average) N/$ 1,505 1,515 (1)%
1. Includes revenue from Independent Power Projects (IPP), pipeline tariffs, and electric vehicle (EV) initiatives.
2. Represents the balance at 31 December 2025 and 31 December 2024.
3. Total capex does not include asset acquisition costs.
4. Gas sales represent the portion of produced gas that was sold to third parties. Accordingly, sales gas volumes are
lower than total gas production.
5. Gas volumes converted to barrels of oil equivalent using a standard conversion factor of 5.8 mscf per boe.
Overview
Oando's full-year 2025 performance reflects the first complete year of consolidated operations
following the acquisition of the NAOC JV assets in 2024, marking a significant uplift in upstream
capacity, operational resilience, and production scale. Production volumes increased materially
across the portfolio, supported by improved asset uptime, infrastructure upgrades, and the full-year
impact of operatorship.
Strong upstream performance, including higher crude oil, gas, and NGL volumes, was partly offset
by lower realised prices and reduced trading revenues following a deliberate rebalancing of the
Trading Division's portfolio.
Revenue
Group revenue declined 21.5% year-on-year to N3.21 trillion in FY 2025 (FY 2024: N4.09 trillion),
reflecting lower trading volumes following a deliberate rebalancing of the Trading Division's portfolio
amid structural changes in the domestic downstream market. This was partly offset by stronger
upstream contributions, supported by higher production volumes following the consolidation of the
NAOC JV interests.
Key segment performance highlights include:
• Crude Oil: Lifted volumes totalled 3.95 MMbbl, generating approximately N305 billion in
revenue at an average realised price of $65.23/bbl (FY 2024: $73.91). Strong volume growth
was partly offset by lower realised oil prices.
• Natural Gas: Sales volumes increased to 7.39 MMboe (44.31 Bscf), generating approximately
N106 billion in revenue at an average realised price of $1.73/mscf ($10.35/boe). Volume
growth remained robust, despite continued pricing pressure in the domestic gas market.
• Natural Gas Liquids (NGLs): NGL volumes rose to 0.45 MMbbl, contributing approximately
N4 billion in revenue, supported by improved recovery following the NGL processing plant
revamp, albeit at structurally lower realised prices of $6.78/bbl.
• Trading: Revenue declined to N2.7 trillion (FY 2024: N3.7 trillion), reflecting a deliberate
reduction in refined-product trading activity amid structural shifts in the domestic downstream
market, alongside the trading of 29.4 MMbbl of crude oil during the year.
While realised prices moderated across key commodities during the year, the increase in production
volumes underscores the resilience of the Group's upstream assets and reinforces the strategic
rationale for rebalancing the earnings mix toward higher-margin, capital-backed production growth.
Gross Profit
Gross profit declined 82.2% year-on-year to N27.8 billion in FY 2025 (FY 2024: N155.9 billion),
reflecting a shift in revenue mix and margin dynamics across the portfolio. The reduction was driven
primarily by lower trading revenues following the deliberate scaling back of high-turnover, low-margin
trading activities, as well as margin compression across certain commodity streams.
While upstream production volumes increased materially following the consolidation of the NAOC JV
interests, realised prices for crude oil and gas moderated year-on-year, and NGL pricing remained
structurally lower. Cost of sales declined in line with reduced trading activity; however, the combined
impact of the changed revenue mix and non-cash accounting items weighed on reported gross
profitability for the year, despite improved capital efficiency.
Administrative Expenses
Administrative expenses reduced 54.5% year-on-year to N278.1 billion in FY 2025 (FY 2024: N610.9
billion). The improvement was largely attributable to a significant reduction in foreign exchange losses
on the revaluation of foreign currency-denominated liabilities compared with the prior year, as well as
the reversal of legal provisions no longer required following the resolution of legacy matters.
Depreciation and amortisation increased by 71.2% year-on-year to N100.0 billion (FY 2024: N71.2
billion), reflecting higher production volumes.
Impairment of assets
The Group recognised a net impairment reversal of N540.7 billion on financial assets in FY 2025,
compared with an impairment charge of N76.2 billion in FY 2024. This represents a material positive
swing year-on-year, driven primarily by the resolution and restructuring of previously impaired
receivables and legacy balances following settlement arrangements concluded during the period.
Operating Profit
The Group recorded an operating profit of N50.2 billion in FY 2025 (FY 2024: N569.7 billion),
representing a decline of 91.1%. This was mainly driven by other operating losses, including fair value
losses on modifications to financial instruments recognised during the year. These items are largely
non-cash and relate to balance sheet restructuring actions rather than underlying operating
performance.
Net Finance Costs
Net finance cost reduced 80.8% year-on-year to N36.2 billion in FY 2025 (FY 2024: N188.6 billion).
The improvement reflects lower effective financing costs, the reversal of prior default interest, and the
resolution of long-outstanding financing items, consistent with management's focus on balance sheet
optimisation and funding efficiency.
Taxation
The Group recognised a tax credit of N226.1 billion in FY 2025 (FY 2024: tax expense of N163.7
billion), representing a swing of N389.8 billion year-on-year. This was driven by the reversal of
previously recognised tax provisions and the recognition of deferred tax credits, following ongoing
engagements with tax authorities and internal reassessments of historic tax positions.
Profit After Tax
Profit after tax increased 9.6% year-on-year to N241.3 billion in FY 2025 (FY 2024: N220.1 billion).
The improvement reflects stronger upstream operating performance, impairment reversals, and
favourable tax adjustments, partly offset by fair value and other non-cash losses recognised during
the year. Earnings per share increased 66.7% year-on-year to N30 per share (FY 2024: N18 per
share).
Liquidity and Balance Sheet
During the year, the Group strengthened its liquidity position through disciplined working capital
management, structured bank financing, and targeted balance sheet actions. Funding was secured
from a mix of local and international financial institutions to support upstream operations and crude
marketing activities. The recovery of outstanding receivables contributed to the reduction and
restructuring of corporate facilities and other obligations, while legacy facilities were settled or
refinanced. These actions improved the Group's funding profile, reduced near-term liquidity pressure,
and enhanced financial flexibility to support ongoing operational and capital requirements. At the
Company level, retained earnings moved into positive territory during the period, reflecting non-cash
intra-group balance sheet movements associated with ongoing capital restructuring activities.
Cash Flow Performance
The Group delivered a material year-on-year improvement in cash flow performance in FY 2025,
reflecting stabilised operating performance, improved working capital management, and the
normalisation of acquisition-related cash flows following the NAOC transaction in the prior year.
Net cash used in operating activities reduced to N147.4 billion in FY 2025, compared with N535.3
billion in FY 2024, representing an improvement of approximately N387.9 billion year-on-year. The
improvement was driven primarily by enhanced receivables recovery, tighter working capital controls,
and improved cash conversion across core operating activities, supported by higher production
volumes and reduced operational disruptions. Interest and tax payments during the year amounted
to N222.6 billion.
Net cash used in investing activities amounted to N16.7 billion in FY 2025, compared with N872.9
billion in FY 2024, which was largely driven by the NAOC asset acquisition. The increased capital
expenditure of N101.7 billion (FY 2024: N18.5 billion), is primarily directed toward upstream
development, facility integrity and infrastructure investments.
Net cash generated from financing activities was N383.3 billion in FY 2025, compared with N1.47
trillion in FY 2024. Financing inflows during the year were driven by N1.33 trillion in new borrowings
to support upstream development and working capital requirements, partly offset by N961.9 billion in
debt repayments as the Group continued to rebalance its funding profile and reduce legacy
exposures.
As a result of these movements, the Group recorded a net increase in cash and cash equivalents of
N219.3billion during the year, closing FY 2025 with a balance of N363.8 billion, compared with N155.3
billion at the start of the period.
Capital Structure and Funding Strategy
Total borrowings stood at N3.00 trillion as at 31 December 2025 (FY 2024: N2.77 trillion), reflecting
incremental drawdowns to support operations and capital investment, as well as the impact of foreign
exchange movements on foreign-currency-denominated obligations.
During the year, the Group completed the restructuring of longstanding facilities, including the
settlement of N27 billion under the MTL and $98 million under the Corporate Facility. These actions
followed shareholder approvals obtained at the 46th Annual General Meeting and Extraordinary
General Meeting and form part of the Group's broader capital restructuring programme. The
measures have extended repayment profiles, improved liquidity headroom, and strengthened
financial flexibility.
$375 Million Refinancing to Support Upstream Development
In June 2025, Oando Oil Limited (OOL), an upstream subsidiary of Oando PLC and a 20% participant
in the OMLs 60–63 Joint Venture, successfully upsized its reserve-based lending facility ("RBL2") to
$375 million. Originally secured at $525 million in 2019 and reduced to $100 million by December
2024, the refinancing, led by Afreximbank with support from Mercuria, enhances the Group's financial
flexibility and supports its medium-term production growth objectives. The facility will fund the efficient
development and monetisation of the Group's upstream asset base.
Hedging
To manage oil price volatility and support revenue stability, the Group implemented a hedging
programme covering 3,000 barrels per day using purchased put options with a strike price of $59/bbl.
These instruments provide downside protection while preserving upside exposure.
Corporate and Governance Updates
• During the year, the Group executed the first tranche of its approved 1.28 billion share
distribution programme, delivering one fully paid share for every twelve shares held in August
2025. The second tranche will be implemented in line with Board approval.
• Board and executive succession were strengthened with the appointment of Ms. Ayotola
Jagun as Executive Director and Mrs. Folasade Ibidapo-Obe as Chief Compliance Officer and
Company Secretary.
• In November 2025, the Company was inducted into the Society for Corporate Governance
Nigeria (SCGN), reflecting ongoing enhancements to governance practices, board oversight
and compliance frameworks as the Group scaled its operating footprint.
JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited
Date: 02-02-2026 07:10:00
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