Oanda's profit declines in first half but firm achieves 63% production growth

Oando, Nigeria's leading indigenous energy group listed on both the Nigerian Exchange and JSE, in its unaudited results for the six months ended June 30, 2025, said gross profit fell by 28% to ₦59 billion (R7 billion) reflecting both a topline contraction and changing segment mix.

However, the company’s upstream business recorded strong production performance with a 63% year-on-year growth averaging 37 012 boepd (Barrels of Oil Equivalent per Day) in the first half of 2025. This includes crude oil production up 77% to 10 479 bopd, gas volumes up 54% to 25 399 boepd, and NGL production up 375% to 1 135 bpd. The company attributes this performance to the consolidation of the Nigerian Agip Oil Company (NAOC) JV interest and improved uptime across key assets.

The Group reported revenue of ₦1.72 trillion, representing a 15% decline driven by lower trading activity and weaker realised prices, despite stronger upstream contributions.  Nevertheless, the company maintained a profit-after-rax of N63 billion, consistent with the result recorded in the first half of, 2024. Following, its recent acquisition of NAOC from Italian oil giant, Eni, the company has focused heavily on infrastructure upgrades, production optimisation, and integration of the NAOC asset base leading to increased capital expenditure increase of ₦44 billion.

Additionally, Oando said its commitment to safety is demonstrated by achieving zero lost-time injuries (LTIs) and recording 12.3 million LTI-free hours.The Trading subsidiary increased its crude oil liftings to 14 cargoes (12.9 MMbbl) in H1 2025, compared to 10 cargoes (10.6 MMbbl) in the first half 2024, reflecting improved offtake execution.

Wale Tinubu CON, the Group CEO Oando, said: "In H1 2025, we advanced our growth agenda in our upstream division, the primary driver of the Group's performance, by achieving a 63% year-on-year increase in production volumes. This was driven by the successful consolidation of NAOC's assets, early gains from our optimization programme and our assumption of operatorship, which enabled us implement holistic security measures amid improved community relations, resulting in enhanced infrastructure reliability, higher production volumes, and greater operational resilience."

He said Oando's trading segment faced headwinds,  which exerted pressure on the entity's revenue and the sroup's topline as a result of declining PMS ( Premium Motor Spirit) imports into the country due to rising local refining capacity from the Dangote Refinery, a positive development that enhances Nigeria's energy security and self- sufficiency.

In response, Oando had diversified its crude offtake sources, optimized trade flows, and expanded into LNG and metals.

Tinubu said these initiatives are already gaining traction and will support stronger performance in the second half. Oando Clean energy also advanced its e-vehicles, PET recycling and solar module assembly projects, initiatives critical to our long-term diversification goals and broader commitment to environmental sustainability.

"As we enter the second half of the year, our priorities are clear: accelerate upstream monetization through drilling and production assurance, strengthen trading performance, and execute our capital restructuring initiatives to restore balance sheet flexibility. With a focused strategy and a clear execution roadmap, we remain committed to delivering sustained value to our shareholders," Tinubu said. 

BUSINESS REPORT