One of the leading energy firms in Nigeria, Oando Plc, ended the 2025 financial year with a strong cash position of N422.9 billion, enhancing its financial flexibility and capacity to fund future growth.
In its audited financial statements for 2025, the organisation strengthened its financial position through disciplined capital allocation, improved working capital management, and targeted balance sheet optimisation initiatives, which contributed to operating cash flow generation of N258.3 billion in the year.
The company recorded strong production performance from upstream operations, delivering average production of 32,482 boepd, improved uptime and operational reliability across core assets, and maintained a strong safety performance with zero fatalities, zero lost-time injuries, and a Total Recordable Incident Rate (TRIR) of 0.05.
Last year, its revenue, however, shrank to N3.2 trillion from N4.1 trillion in 2024, reflecting trading optimisation and exit from low-margin PMS activities, while profit after tax contracted to N205 billion from N220 billion.
The chief executive of Oando, Mr Wale Tinubu, in his reaction to the results, said, “FY 2025 marked our first full year of operational execution following the acquisition of the NAOC Joint Venture assets and represents an important milestone in Oando’s evolution.
“Having successfully completed the integration phase, our focus shifted to operatorship, operational excellence, and value realisation across the enlarged portfolio.”
“During the year, we strengthened asset integrity, enhanced security across our operating areas, and improved uptime, resulting in a 32 per cent year-on-year increase in production to 32,482 boepd net to Oando. This performance was driven by stronger output across crude oil, gas, and NGLs, improved operational reliability, and the successful stabilisation of our expanded asset base.
“A key highlight of the year was the successful completion and start-up of the Obiafu-44 gas-condensate well, our first operated development well following the assumption of operatorship. This achievement demonstrates that indigenous operators can safely, efficiently, and responsibly execute complex development programs at scale while creating long-term value from strategic national assets.
“We also continued to advance our broader development programme and asset optimisation initiatives designed to unlock additional value from our portfolio.
“In our trading business, we responded proactively to evolving market dynamics by deliberately repositioning the portfolio away from lower-margin gasoline importation and towards higher-margin crude and gas opportunities. This strategic shift, combined with structured offtake and financing arrangements, strengthened liquidity, improved cash generation, and enhanced the business’s resilience,” he added.
He further said, “Beyond operational delivery, we continued to strengthen the Group’s financial position through disciplined capital allocation, improved working capital management, and targeted balance sheet optimisation initiatives. These efforts contributed to operating cash flow generation of N258.3 billion during the year and supported a strong closing cash position of N422.9 billion, enhancing the group’s financial flexibility and capacity to fund future growth.
“With operational control firmly embedded, a strong reserves base, and improving financial flexibility, we are well-positioned to build on the momentum achieved in 2025 and enter 2026 from a position of strength. Our focus remains on executing our development programme, growing production, strengthening cash generation, prudent capital allocation, and delivering sustainable long-term value for our shareholders,” Mr Tinubu noted.