By Sofiyyah Layole
Oando Plc has reported a significant jump in profitability, posting a profit after tax (PAT) of ₦201.31 billion for the nine months ended September 30, 2025.
This marks a substantial improvement from the ₦76.30 billion recorded in the same period of 2024, a performance the company attributed primarily to a sharp increase in finance income and a reversal of prior default interest.
According to the unaudited financial statements filed with the Nigerian Exchange Group (NGX), the Group’s revenue actually declined by 20 per cent to ₦2.54 trillion from ₦3.19 trillion a year earlier.
While cost of sales dropped significantly to ₦2.43 trillion, gross profit still decreased to ₦113.03 billion, and the company recorded a net operating loss of ₦109.73 billion after administrative expenses.
The dramatic surge in the bottom line, therefore, was not operational but financial. Finance income grew sharply to ₦368.69 billion from just ₦27.05 billion in 2024. This, combined with a crucial reversal of prior default interest amounting to ₦48.10 billion, resulted in a net finance income of ₦128.01 billion, providing the critical support for overall earnings.
Despite the boost from its financial activities, Oando’s Profit Before Tax (PBT) actually registered a decline to ₦19.46 billion from ₦31.13 billion in the prior period.
However, the final profit figure was secured by a massive tax credit of ₦181.85 billion, which fully converted the modest pre-tax figure into the impressive after-tax result.
Consequently, profit attributable to equity holders soared to ₦204.47 billion, pushing the basic earnings per share to ₦16 from ₦6 in 2024.
The strong quarterly performance in the third quarter further highlighted this trend, with Oando posting a PAT of ₦137.99 billion for the three months ended September 2025 alone.
The results highlight the company’s success in financial management and cost optimization despite facing fluctuating oil prices and foreign exchange challenges.