Oando Posts 172% Growth in Gross Profit in Q1 2025 Financial Report as Crude Oil Production Increases 132%
Oando (www.OandoPLC.com), one of Africa's leading indigenous energy solutions providers, has ended the first quarter of the year on a high with the publication of ₦933 billion revenue in its Q1 2025 unaudited results. This performance comes in the wake of its recent release of its 2024 FY Audited Financial Statement, where it reported a 44% year-on-year revenue increase to ₦4.1 trillion compared to ₦2.9 trillion in FY 2023 and a 267% increase in Profit-After-Tax to ₦220 billion.
Oando, like a few indigenous oil and gas companies in Nigeria, who keyed into the International Oil Companies (IOCs) divestment of onshore assets, has begun reaping the gains of its acquisition of Nigerian Agip Oil Company (NAOC) from Italian oil giant, Eni.
An analysis of Oando's financials shows that the company's turnover grew by 2% year-on-year to ₦933 billion in Q1 2025 compared to ₦915 billion in Q1 2024. Additionally, the company posted a 172% increase of ₦85 billion in Gross Profit in Q1 2025 compared to ₦31 billion in Q1 2024, reflecting stronger E&P margins. In its upstream business, crude oil production rose 132% to 11,369 bopd, gas volumes grew by 56% to 25,185 boepd, and NGL production increased 30% to 1,040 bpd. The company recorded zero lost-time injuries (LTIs) and 12.3 million LTI-free hours, underscoring continued HSE excellence. In addition, the company achieved average daily production of 37,595 boepd (within guidance), up 72% year-on-year, driven by the full consolidation of NAOC assets and well reactivations. The company was awarded operatorship of Block KON 13 in Angola, marking its strategic entry into the Kwanza Basin, Angola and expanding Oando's African upstream footprint.
Speaking on the Q1, 2025 financial results, Wale Tinubu CON, Group Chief Executive, Oando PLC remarks '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.
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.'
There is evidence of a trend in the upward financial trajectory in the industry, as Seplat recorded revenues of N1.228 trillion, a 350% increase. Similarly, Aradel reported revenues of ₦199.9 billion, up 97.6%, and Profit after Tax of ₦34.2 billion, up 55.3%.
In its downstream trading business, Oando Trading reported six (6) crude oil cargos (5.96 MMbbl) traded in Q1 2025, up from four (4) 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 (2) operational e-buses under the electric mobility programme operating in Lagos. It also successfully published Nigeria's National Wind Resource Capacity Report, identifying state-level wind potential across the country.
Speaking on the outlook for 2025, Wale Tinubu CON, 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. 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 is targeting a full-year production of 30–40 kboepd maintained, driven by a balanced capital programme of three (3) new wells, nine (9) workovers, and six (6) rig-less interventions. The company is also projecting capex of $250–270 million focused on drilling, infrastructure, and ESG projects, with a 20% cost reduction goal. The company has set a trading guidance for its Trading subsidiary of 25 – 35 MMbbl crude oil; 750,000 – 1,000,000 MT refined products. For its renewable energy arm, Oando targets the deployment of 50 electric buses and progress its solar PV module assembly plant toward Final Investment Decision (FID).
These plans are strengthened by the company's recent announcement of the successful upsizing of its reserve-based lending ('RBL2') facility to $375 million. This critical financing will significantly improve the Company's ability to achieve its production target of 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the end of 2029.
These Q1 2025 results reinforce the growing momentum among indigenous operators in Nigeria's upstream sector, who are beginning to demonstrate operational efficiency and financial resilience following recent asset acquisitions. With a 2% rise in revenue, a remarkable 172% surge in gross profit to ₦85 billion, and a 72% increase in average daily production, all within guidance, Oando's 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's energy landscape.
Distributed by APO Group on behalf of Oando PLC.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
6 hours ago
- The National
DRC and Rwanda sign 'Washington Accord' peace deal
Rwanda and the Democratic Republic of Congo (DRC) signed a US-brokered peace agreement in Washington on Friday, ending three decades of conflict and ushering in billions in foreign investment to the region. President Donald Trump, flanked by his Vice President JD Vance and Secretary of State Marco Rubio, said the foreign ministers of the two countries signed the agreement in the Oval Office. "They were fighting for years, and it was machetes, it was vicious, people's heads were being chopped off," Mr Trump said at a news conference earlier on Friday. "And I have a man who's very good in that part of the world, very smart, and put them together," he said. "First time in many years, they're going to have peace. And it's a big deal." Mr Trump had enlisted the help of Massad Boulos, a Lebanese-American businessman and the father-in-law of the President's daughter Tiffany. Qatar also joined in mediating the process. Born in Lebanon, Mr Boulos has ties to Africa, having lived and owned businesses in Nigeria. Last month, Mr Boulos said the DRC and Rwanda had submitted a draft peace proposal. Speaking in the Oval Office, Mr Boulos said he had first engaged with the two sides in early April, and the final agreement will be known as the Washington Accord. "There's an economic aspect as well that is extremely important for both countries," Mr Boulos said. "There would be some bilateral agreements with negotiating a mineral deal with the DRC for critical minerals - many American companies have shown interest in investing in the DRC," he said. "Same thing with Rwanda. " The agreement would bring to an end a three-decade conflict in the eastern DRC which escalated earlier this year, when the Rwanda-backed M23 rebels seized the key cities of Goma and Bukavu. A draft of the agreement provided by the state Department includes the disengagement of Rwandan forces and the voluntary repatriation of refugees. It also called for the monthly rotating meetings between DRC and Rwanda, with the US and Qatar attending as observers. Another joint meeting was to be held in Washington within 45 days. The fighting has killed about 3,000 people and displaced hundreds of thousands of others. The DRC, United Nations and the US have long accused Rwanda of providing weapons and training to the M23 rebels. Rwanda denies supporting M23, and says its forces are acting in self-defence against the Congolese army and Hutu militias linked to the Rwandan genocide of ethnic Tutsis in 1994. The conflict is fuelled by the rich mineral resources in eastern Congo. The DRC is the world's largest producer of cobalt, a mineral used to make lithium-ion batteries for electric vehicles and smartphones. The country also has substantial gold, diamond and copper reserves. M23 and Rwanda are accused of exploiting these resources. On Thursday, Reuters reported that the DRC had dropped its demand for the immediate withdrawal of Rwandan troops, paving the way for the peace deal. Physicians for human rights, an organisation that has worked in the DRC for more than a decade, said the agreement does not ensure that hostilities would not resume through proxy armed groups, and has no reparations component. "We welcome any dialogue and de-escalation in the devastating conflict in eastern DRC, but it is important to note that the new agreement between Rwanda and DRC contains major omissions and does not adequately safeguard civilians in the region," Sam Zarifi, executive director said in a statement on Friday. "There can be no durable peace without meaningful justice. But the agreement signed today sidelines human rights and fails survivors," he said. The economic incentives involved remain unclear as Mr Trump seeks to compete with China in investing in the region's abundant mineral wealth. Mr Trump said it included the US getting "mineral rights" from the Congo. The draft agreement said it would shut down 'illicit economic pathways' and instead "formalise and audit" cross-border mineral trade.
The National
10 hours ago
- The National
DRC and Rwanda to sign peace deal in Washington
Rwanda and the Democratic Republic of Congo (DRC) are set to sign a US-brokered peace agreement in Washington on Friday, ending years of conflict and ushering in billions in foreign investment to the region. President Donald Trump will host the foreign ministers of the two countries in the Oval Office after the official signing in the State Department. "They were fighting for years, and it was machetes, it was vicious, people's heads were being chopped off," Mr Trump said in a news conference on Friday. "And I have a man who's very good in that part of the world, very smart, and put them together," he said. "First time in many years, they're going to have peace. And it's a big deal." Mr Trump had enlisted the help of Massad Boulos, a Lebanese-American businessman and the father-in-law of the President's daughter Tiffany. Qatar also joined in mediating the process. Born in Lebanon, Mr Boulos has ties to Africa, having lived and owned businesses in Nigeria. Last month, Mr Boulos said Congo and Rwanda had submitted a draft peace proposal. The agreement would bring to an end a three-decade conflict in eastern Congo which escalated earlier this year, when the Rwanda-backed M23 rebels seized the key cities of Goma and Bukavu. The fighting has killed about 3,000 people and displaced hundreds of thousands of others. The DRC, United Nations and the US have long accused Rwanda of providing M23 rebels weapons and training. Rwanda has long denied supporting M23, and says its forces are acting in self-defence against Congo's army and Hutu militias linked to the Rwandan genocide of ethnic Tutsis in 1994. The conflict is fuelled by the rich mineral resources in eastern Congo. Congo is the world's largest producer of cobalt, a mineral used to make lithium-ion batteries for electric vehicles and smartphones. The country also has substantial gold, diamond and copper reserves. M23 and Rwanda being accused of exploiting these resources. On Thursday, Reuters reported that the DRC had dropped its demand for the immediate withdrawal of Rwandan troops, paving the way for the peace deal. Few details have been made available about the deal, or the economic incentives involved, as Mr Trump seeks to compete with China in investing in the region's abundant mineral wealth.
Zawya
14 hours ago
- Zawya
Powering Women's Economic Transformation in Tanzania
In Kigoma, Tanzania, where over 80 per cent of livelihoods rely on small-scale farming, fishing, and informal trade, women constitute the majority of the agricultural workforce and are the backbone of the region's economy. However, in an increasingly digital economy, limited digital literacy remains a major barrier to unlocking women's full economic potential, with many women in the region lacking the necessary skills to use mobile platforms, digital financial services, or online marketplaces, impeding the growth and formalization of women-led businesses. Amid these challenges, women like Chichi Ramadhani Kamandwa are increasingly harnessing digital tools to grow their businesses. A 39-year-old mother of three and a determined entrepreneur living in Kigoma town, Kamandwa runs a small-scale agro-processing business specializing in the milling and packaging of maize, cassava, and nutrient-rich flours. In 2024, she participated in a Digital Literacy and Branding workshop organized by UN Women to equip women entrepreneurs in the region with practical skills to expand their businesses and access wider markets through digital platforms. The initiative formed part of the second phase of the UN Kigoma Joint Programme (KJP II) - a collaborative effort of 17 UN agencies working with local authorities and communities to advance development and human security in Kigoma - and engaged beneficiaries of UN Women's "Binti Dijitali" African Girls Can Code Initiative (AGCCI), who facilitated sessions with hands-on technical expertise and peer-led guidance. 'Before the training, I only used my phone for calls and taking pictures. I didn't know it could be a marketing tool for my business, helping me showcase my products online, reach more customers, and improve my record-keeping,' said Kamandwa. With the skills she has acquired, Chichi is now transforming her business. 'I learned how to create product labels, list ingredients and registration numbers to build customer trust, and package my products attractively,' said Kamandwa, adding that the most beneficial change she made was improving my packaging. 'I realized how much the look of a product matters. After updating my logo and labels and switching to better-quality packaging, my sales increased significantly, because customers had more confidence in my brand,' she explains. Kamandwa also began using accessible platforms such as WhatsApp to reach new customers, advertise her products, and receive orders. In Kigoma, many women entrepreneurs navigate complex social and economic realities. Alongside their business efforts, they often carry the primary responsibility for household care and income generation, frequently without consistent support from partners. 'Once a woman begins to earn, she is often left to shoulder everything alone,' Kamadwa explains. 'Some men leave for work in other towns, return only briefly, and then leave again, while the woman is left behind to care for the children, run the household, and manage her business on her own.' Additionally, limited access to financial services or reliable support systems leaves women vulnerable to unfair treatment or exploitative arrangements, particularly when trying to access markets or services. 'When you lack information or tools, people take advantage of you,' says Kamandwa. Through strategic partnerships with local government authorities, trade officers, mobile service providers, and private sector actors, UN Women, under KJP II, is working to create an inclusive and enabling business environment for women and youth. 'Initiatives such as the digital literacy workshop aim to strengthen the capacity of women-led enterprises to adopt innovative, market-driven practices, build resilience, and transition into formal markets for sustainable growth,' says Ms. Lilian Mwamdanga, UN Women Specialist for Women's Economic Empowerment. According to Kamandwa, the benefits of workshops like these extend well beyond the knowledge they gain. They create opportunities for women to connect with peers, share experiences, and establish lasting support networks. 'We have even formed small groups to support and uplift one another,' she shares. 'I have also started teaching other women how to use their phones for business. It might seem like a small thing, but it can really transform how we work and sell.' The use of digital platforms has also empowered women like Kamandwa to manage their sales independently, reducing reliance on informal and often unreliable intermediaries. With increased visibility and growing sales, Kamandwa has expanded her inventory and begun selling her products in bulk. She also hopes to continue mentoring others and to start providing training for young women interested in business, so they too can build a future of their own. 'If I can do this, I believe other women can too. We just need the right support and a chance to grow,' she says. Distributed by APO Group on behalf of UN Women - Africa.
