Oando posts N135.76 billion FY2025 pre-tax profit amid N3.76 trillion working capital deficit

Oando Plc has reported a pre-tax profit of N135.76 billion in its audited full-year results for the period ended December 31, 2025, a sharp 64.6% decline from N383.27 billion in FY2024, amid negative working capital position of N3.76 trillion.

The audited result filed with the Nigerian Exchange (NGX) on Monday, July 6, 2026, shows a 22.2% revenue contraction from N4.09 trillion in 2024 to N3.18 trillion in 2025, and a gross loss position from N93.34 billion gross profit in FY2024 to N2.76 billion loss in 2025.

CEO’s comments:

In a release filed on NGX alongside the result, the Group Chief Executive, Mr. Wale Tinubu, described FY2025 as a milestone year.

• “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,” he said.
• “Having successfully completed the integration phase, our focus shifted to operatorship, operational excellence, and value realisation across the enlarged portfolio.”
• He highlighted the Obiafu-44 well completion as a landmark achievement, adding that it “demonstrates that indigenous operators can safely, efficiently, and responsibly execute complex development programmes at scale while creating long-term value.”

Key highlights: (2025 FY vs. FY2024)

• Revenue: N3.18 trillion, down 22.2% year-on-year
• Cost of Sales: N3.18 trillion, down 20.3% year-on-year
• Gross Loss: N2.76 billion (vs N93.34 billion gross profit in FY2024)
• Other Operating Income: N203.79 billion, down 81.5% year-on-year
• Administrative Expenses: N399.25 billion (vs N548.31 billion in FY2024)
• Operating Profit: N240.96 billion, down 57.7% year-on-year
• Profit Before Tax: N135.76 billion, down 64.6% year-on-year
• Profit After Tax: N204.81 billion, down 7.0% year-on-year
• Finance Income: N288.03 billion, up 510.3% year-on-year
• Finance Costs: N394.69 billion, up 67.4% year-on-year
• Net Finance Cost: N106.66 billion (vs N188.64 billion in FY2024)
• Income Tax Credit: N69.05 billion (vs N163.70 billion tax expense in FY2024)
• Earnings Per Share: 23 kobo, up from 18 kobo in FY2024

Driving the numbers:

Oando’s revenue declined to N3.18 trillion in 2025 from N4.09 trillion in 2024, showing weaker top-line performance over the year.

• The company moved from a gross profit of N93.34 billion in 2024 to a gross loss of N2.76 billion in 2025, indicating that cost of sales exceeded revenue during the year.
• Group production averaged 32,482 boepd in FY2025 a 32% year-on-year increase driven by higher output across crude oil, gas, and NGLs, and the full-year impact of the NAOC Joint Venture consolidation following the acquisition of the former Nigerian Agip Oil Company assets.
• Cost of sales stood at N3.18 trillion, slightly higher than revenue, putting pressure on core trading profitability before other income and impairment gains were considered.
• Operating profit also weakened significantly, falling to N240.96 billion from N569.68 billion. The decline came despite a major reversal of impairment on financial assets of N441.48 billion and lower administrative expenses of N399.25 billion, compared with N548.31 billion in 2024.
• Other operating income, however, fell sharply to N203.79 billion from N1.10 trillion, reducing the support available to operating earnings.
• Finance costs rose to N394.69 billion from N235.84 billion, reflecting a heavier interest burden. This was partly offset by finance income of N288.03 billion, which was significantly higher than N47.20 billion in the prior year.

As a result, net finance cost improved to N106.66 billion from N188.64 billion, but this was not enough to prevent a decline in pre-tax profit

Balance sheet

On the balance sheet, total assets increased to N7.45 trillion, supported mainly by higher current assets.

• Trade, other receivables and contract assets rose to N2.19 trillion from N750.26 billion, while cash and cash equivalents almost doubled to N439.88 billion.
• Capital expenditure of $36.9 million was allocated to field development, infrastructure enhancements, and exploration activities.
• On the liabilities side, total liabilities also increased to N8.01 trillion from N6.80 trillion, driven largely by trade and other payables of N4.08 trillion and current borrowings of N2.08 trillion.

Oando remained in a negative equity position, with total equity at negative N566.97 billion compared with negative N360.98 billion in 2024. This shows that liabilities continued to exceed assets at the end of the reporting period.

What you should know:

Oando’s FY2025 post-tax profit of N204.81 billion was buoyed by a N69.05 billion tax credit rather than operational earnings improvement.

• The net profit margin improved modestly to 6.4% from 5.4%, while the pre-tax margin collapsed to 4.3% from 9.4% — reflecting the twin pressures of lower revenue and higher finance costs on operating earnings.
• Production growth of 32% year-on-year to 32,482 boepd represents a genuine operational achievement and positions Oando’s enlarged portfolio for stronger revenue potential in 2026 — the first full year of earnings contribution from the ND Western and NAOC JV acquisitions.
• OML 56 Ebendo daily production averaged 2,379 boepd, down from 2,825 boepd, due to a temporary shut-in between February and April 2025 pending regulatory approval.
• OML 13 Qua Ibo averaged 370 bopd against 411 bopd on natural field decline, with a new development well planned for early 2026.

Market performance

Oando’s share closed at N41.45 on Monday, July 6, up 1.5% from Friday’s N40.85 close but still down from its May 25 peak of N54.90 and barely 3.11% above its January 2 opening price of N40.20, ranking it 84th on the NGX by year-to-date performance.

The market reaction to the FY2025 results is expected in the trading sessions ahead as trading had closed before the announcement was published.