…Cash pile swells
Oando Plc posted its strongest annual profit on record, as the first full year of production from the former Nigerian Agip Oil Company (NAOC) assets pushed output and cash generation sharply higher, giving Nigeria’s indigenous energy sector fresh evidence that it can wring value from fields abandoned by international majors.
The Lagos- and Johannesburg-listed producer said profit after tax climbed to N204.8 billion for the year ended December 31, a gain the company attributed to the integration of the NAOC joint venture it acquired in 2024.
Average daily production rose 32 percent to 32,482 barrels of oil equivalent, while cash from operations reached N258.3 billion. Oando closed the year with N422.9 billion in cash and equivalents, nearly triple
Having absorbed the Agip assets, one of the largest divestitures by an international oil major in Nigeria’s history, Oando shifted its focus in 2025 to running the fields itself, taking on operatorship duties it previously shared with its former partner.
“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,” Wale Tinubu, Oando’s group chief executive, said in a statement accompanying the results. “Having successfully completed the integration phase, our focus shifted to operatorship, operational excellence, and value realisation across the enlarged portfolio.”
Crude output rose 36 percent and gas production climbed 24 percent, Oando said, while natural gas liquids production surged more than sevenfold after the company upgraded processing infrastructure it inherited from Agip.
The company also brought online the Obiafu-44 gas-condensate well, its first development well completed since taking over as operator, a milestone Oando cast as proof it can execute complex projects without its former partner’s technical backing.
Safety metrics held steady through the ramp-up: Oando reported zero fatalities and zero lost-time injuries for the year, with a recordable-incident rate of 0.05.
The company’s trading arm, which buys and sells crude and refined products, expanded volumes 24 percent to 25.7 million barrels. Oando said it deliberately scaled back gasoline import trading, a lower-margin, politically sensitive business in Nigeria, in favor of crude and gas trades tied more closely to its own production.
Oando used part of its cash buildup to upsize a reserve-based lending facility to $375 million, giving it more room to fund a development program the company says will lift output to between 40,000 and 50,000 barrels of oil equivalent per day in 2026.
Capital spending is budgeted at $90 million to $100 million, concentrated on the OMLs 60-63 license blocks that make up the core of the former Agip acreage. The trading division is targeting 30 million to 35 million barrels of volume next year, up from 25.7 million.
Tinubu said the balance-sheet repair gives Oando latitude to keep investing without returning to the acquisition trail that defined its recent history.
“With operational control firmly embedded, a strong reserves base, and improving financial flexibility, we are well-positioned to build on the momentum achieved in 2025 and enter 2026 from a position of strength,” he said.
The company is also pressing ahead with lower-carbon ventures, including an expansion of its electric-bus fleet and gas-to-power projects, even as its core earnings remain tied to oil and gas output.
The International Energy Agency has said investment in gas and upstream infrastructure is likely to stay resilient globally as governments prioritise energy security, a backdrop Oando is counting on as it works to convert its enlarged reserve base into steadier, longer-term cash flow.
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