Oando Plc has announced a significant drop in its pre-tax profit for the full year ended December 31, 2025, reporting N135.76 billion. This represents a 64.6% decline from the N383.27 billion recorded in FY2024, as revealed in its audited results filed with the Nigerian Exchange (NGX) on Monday, July 6, 2026. The company also reported a negative working capital position of N3.76 trillion.
The energy firm experienced a 22.2% contraction in revenue, which fell from N4.09 trillion in 2024 to N3.18 trillion in 2025. This weaker top-line performance contributed to a gross loss of N2.76 billion in 2025, a stark contrast to the N93.34 billion gross profit achieved in FY2024.
Mr. Wale Tinubu, the Group Chief Executive, described FY2025 as a “milestone year” in a release accompanying the results. He stated, “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.”
Tinubu further noted that the company's focus shifted to “operatorship, operational excellence, and value realisation across the enlarged portfolio” after successfully completing the integration phase. He highlighted the Obiafu-44 well completion as a landmark achievement, demonstrating indigenous operators' capability to safely, efficiently, and responsibly execute complex development programmes at scale while creating long-term value.
Financial Performance Breakdown
A detailed look at the financial figures shows that cost of sales stood at N3.18 trillion, slightly exceeding revenue and pressuring core trading profitability. Operating profit significantly weakened, falling 57.7% to N240.96 billion from N569.68 billion in FY2024.
This decline occurred despite a major reversal of impairment on financial assets amounting to N441.48 billion and reduced administrative expenses of N399.25 billion, down from N548.31 billion in 2024. However, other operating income sharply decreased by 81.5% to N203.79 billion from N1.10 trillion, reducing support for operating earnings.
Finance costs increased by 67.4% to N394.69 billion from N235.84 billion, indicating a heavier interest burden. This was partially offset by a substantial increase in finance income, which surged 510.3% to N288.03 billion from N47.20 billion in the prior year.
Consequently, net finance cost improved to N106.66 billion from N188.64 billion. Despite this improvement, it was insufficient to prevent the overall decline in pre-tax profit. The company reported a profit after tax of N204.81 billion, a 7.0% decrease year-on-year, buoyed by a N69.05 billion income tax credit compared to a N163.70 billion tax expense in FY2024.
Earnings Per Share (EPS) rose to 23 kobo from 18 kobo in FY2024. The net profit margin modestly improved to 6.4% from 5.4%, while the pre-tax margin collapsed to 4.3% from 9.4%, reflecting pressures from lower revenue and higher finance costs.
Operational Highlights and Balance Sheet
Operationally, Oando achieved a 32% year-on-year increase in group production, averaging 32,482 boepd in FY2025. This growth was driven by higher output across crude oil, gas, and NGLs, and the full-year impact of the NAOC Joint Venture consolidation.
Capital expenditure for the year amounted to $36.9 million, allocated to field development, infrastructure enhancements, and exploration activities. However, 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. OML 13 Qua Ibo averaged 370 bopd against 411 bopd due to natural field decline, with a new development well planned for early 2026.
On the balance sheet, total assets increased to N7.45 trillion, primarily supported by higher current assets. Trade, other receivables, and contract assets rose to N2.19 trillion from N750.26 billion, while cash and cash equivalents nearly doubled to N439.88 billion.
Conversely, total liabilities also increased to N8.01 trillion from N6.80 trillion, largely driven 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, indicating that liabilities continued to exceed assets.
Market Performance
Oando’s share price closed at N41.45 on Monday, July 6, up 1.5% from Friday’s N40.85 close. Despite this daily gain, the stock remains down from its May 25 peak of N54.90 and is barely 3.11% above its January 2 opening price of N40.20. The company ranks 84th on the NGX by year-to-date performance.
Market reaction to the FY2025 results is anticipated in upcoming trading sessions, as the announcement was published after trading hours on July 6, 2026.
