FY 2025: Oando posts ₦204.8bn profit, remain silent on dividend payouts

Oando PLC has released its audited financial results for the full year ended December 31, 2025, declaring a resilient after-tax profit of ₦204.8 billion.

Despite the strong bottom-line performance and a substantial build-up in cash reserves, the energy group remained completely silent regarding dividend payments to its shareholders.

The notice published on Monday, July 6, 2026, on the Nigerian Exchange Limited, reveals that the group’s profit after tax dipped slightly from the ₦220.1 billion recorded in the 2024 financial year.

However, the ₦204.8 billion profit was highly supported by massive impairment reversals on financial assets and strategic tax credits, which heavily compensated for weaker top-line performance during the transition year.

Oando’s total revenue for the year fell to ₦3.2 trillion compared to the ₦4.1 trillion generated in 2024, representing an approximate 22% decline. Management attributed this drop to an intentional, proactive portfolio repositioning away from lower-margin activities, specifically the importation of Premium Motor Spirit (gasoline), to focus entirely on higher-margin crude and gas opportunities.

Despite lower revenues, the group achieved significant operational efficiency, generating ₦258.3 billion in cash from operations, reflecting a stark turnaround in working capital management.

The company’s overall cash and cash equivalents consequently surged to ₦422.9 billion by the end of December 2025, providing Oando with vastly improved financial flexibility heading into the next fiscal year.
A primary highlight of the 2025 financial year was the first full-year contribution from the newly acquired Nigerian Agip Oil Company (NAOC) Joint Venture assets. This acquisition catalyzed a 32% year-on-year increase in upstream production, with output averaging 32,482 barrels of oil equivalent per day (boepd), up from the previous year.

According to Group Chief Executive Officer, Wale Tinubu, the year was defined by embedding operational control, strengthening asset integrity, and improving uptime across core assets. A major technical milestone was the successful completion and start-up of the Obiafu-44 gas-condensate well, which marked Oando’s first operated development well since assuming operatorship from the international oil major.

While the operational scorecard reflects capital structure optimization and an enviable closing cash buffer, the audited report offered no updates, recommendations, or timeline changes concerning a dividend declaration. This continued silence on shareholder distributions persists despite the fact that the company’s earnings per share climbed significantly to ₦23, up from ₦18 in 2024, a boost largely driven by strategic internal adjustments made to the company’s share capital structure during the year.

Looking forward into the rest of 2026, the company has set aggressive production targets of 40,000 to 50,000 boepd and has outlined a 90 million to 100 million capital expenditure budget to drill seven new development wells across OMLs 60 to 63, focusing heavily on short-cycle upstream activities and the expansion of clean energy initiatives.