Nigeria’s Oando posts $120mn nine-month profit on production gains after acquiring NAOC assets

Nigeria’s Oando PLC (NGX:OANDO; JSE:OAO) reported a Profit After Tax of NGN210bn ($120mn) for the nine months to September 30, 2025, marking a 164% increase from NGN76bn a year earlier, as the company consolidated production gains following its acquisition of Nigerian Agip Oil Company (NAOC) assets.

Group revenue fell 20% y/y to NGN2.5 trillion from NGN3.2 trillion, reflecting a sharp reduction in gasoline imports amid the ramp-up of output from the Dangote Refinery.

“In the first nine months of 2025, we consolidated the gains achieved following our acquisition of NAOC’s assets last year. Our assumption of operatorship has been transformational, granting us the agility to act decisively and execute with precision in driving production growth and operational efficiency,” commented Group Chief Executive Wale Tinubu.

He said the period demonstrated “production growth and operational efficiency” across the Oando’s expanded upstream portfolio. Average output rose 59% y/y to 38,121 barrels of oil equivalent per day (boepd), driven by increased uptime across operated assets and integration of the NAOC joint venture interest.

Oando increased its Reserve-Based Lending (RBL 2) facility to $375mn, which the firm said would strengthen liquidity and accelerate development of its 1bnboe reserve base. The company also renegotiated existing credit facilities on longer tenors to support its drilling and asset optimisation programmes.

The company highlighted improved reliability at its natural gas liquids processing facilities, reporting 82% operational uptime during the period. It brought the Obiafu-44 gas-condensate well onstream in October and advanced surface facility upgrades aimed at reducing downtime and improving flow performance.

Alongside upstream expansion, Oando widened its regional footprint. It was awarded operatorship of Block KON 13 in Angola, marking entry into the Kwanza Basin, and was named preferred bidder for the Guaracara Refinery in Trinidad & Tobago, signalling a pending move into Caribbean downstream operations.

Peer results show a broader strengthening among Nigeria’s indigenous producers. Aradel Holdings (NGX:ARADEL) reported NGN368.1bn revenue and NGN146.4bn profit after tax in its latest filings, while Seplat Energy Plc (LSE:SEPL) reported steady revenue growth supported by stable upstream output and a gas-focused strategy.

Oando confirmed that it completed the first tranche of a 1.28bn-share distribution programme, delivering a 5.33% yield to shareholders — its first direct payout in several years. The company appointed Folashade Ibidapo-Obe as Chief Compliance Officer and Company Secretary, reinforcing corporate governance structures.

Oando maintained full-year production guidance of approximately 40,000boepd, with $120mn–$130mn in capex allocated to drilling, infrastructure optimisation and energy transition projects. “As we enter the final quarter of 2025, we remain focused on strengthening our balance sheet, accelerating production growth, and sustaining long-term value creation,” Tinubu said.