Oando Profit Grows by 164% as Group Recognises N182bn Tax Credit
Oando Plc’s profit after tax skyrocketed by 164% year-on-year, reaching N201.3 billion in the first nine months of the 2025 financial year, compared to N76.3 billion in the same period of 2024, its unaudited financial statement revealed.
The significant profitability growth was supported by a stronger underlying performance from the E&P segment and favourable tax-related adjustments, which resulted in about N182 billion in tax credit recognition.
Reflecting its bumper bottom line performance, earnings per share increased by 167% to N16/share from N6/share in the comparable period. Oando gross profit declined by 42% to N113.0 billion in 9M 2025 from N194.4 billion, driven by the drop in Group revenue.
Cost of sales also declined by 19% to N2,428.4 billion from N2,995.2 billion in the equivalent period in 2024, in line with reduced trading volumes and improved cost control measures.
Oando reported that its administrative expenses decreased by 73% to N86.3 billion from N316.6 billion in 9M-2024, primarily due to a N186.7 billion reduction in exchange loss arising from the revaluation of foreign currency-denominated payables and borrowings that impacted the prior period, and a reversal of legal provisions no longer required of N120.9 billion.
The group depreciation and amortisation increased by 64% to N65 billion from N40 billion in the equivalent period in 2024, reflecting higher production volumes of 8.23 MMboe , up from 3.5 MMboe and the consolidation of the NAOC asset base.
Oando recognised a net impairment reversal of N150.7 billion on financial assets in 9M 2025, compared to an impairment charge of N25.5 billion in 9M 2024.
The improvement was primarily driven by the resolution and restructuring of previously impaired receivables, following the execution of a settlement arrangement during the period. The energy company reported a N109.7 billion operating loss in 9M 2025, compared to an operating profit of N161.0 billion in 9M 2024.
The group explained that the sharp decline was primarily due to other operating losses of N287.2 billion, driven mainly by a N311.6 billion fair value loss recognised on the modification of its financial instruments during the period.
Net finance income rose to N128.0 billion in 9M 2025, compared to a net finance cost of N131.1 billion in the prior-year period. The improvement was driven primarily by lower finance costs and the resolution of long-outstanding items recognised during the period, reflecting continued progress in strengthening the Group’s financial position and balance sheet integrity.
The Group recognised a tax credit of N181.8 billion in 9M 2025, compared with N45.2 billion in 9M 2024 – driven by the reversal of previously recognised tax provisions from 2019 to 2022, as well as the recognition of unutilised capital allowances.
Commenting on the results, Wale Tinubu CON, Group Chief Executive, Oando PLC said: “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.
“Production uptime currently stands at 82%, translating to a 59% year-on-year increase in crude oil and gas production, which now averages 38,121boepd, clear evidence of the beginning of the dawn of unlocking the tremendous value our reserves possess.
“During the period, we made meaningful progress in integrating operations, strengthening security and community relations, as well as resolving legacy issues inherited at the point of operatorship.
“Most notably, we achieved a partial recovery of substantial receivables that had remained outstanding for several years and made significant headway in renegotiating long-standing legal matters that had previously been fully provisioned for.
“These milestones underscore the depth of our leadership and our unwavering commitment to unlocking value.” Across our trading business, refined product volumes remained under pressure, largely due to the well-deserved and expected success of the Dangote refinery in meeting Nigeria’s import needs.
“Consequently, our focus had shifted to expanding global crude exports and leveraging structured Pre-Export transactions, an area in which we have continued to record robust success.
“In addition, we also executed the first tranche of our share distribution programme, delivering a 5.33% dividend yield, with the second tranche scheduled for early next year.
“This is yet another tangible demonstration of our focus on creating and returning value to our shareholders.
“As we enter the final quarter of 2025, we remain focused on further strengthening our balance sheet, accelerating production growth, expanding our trading footprint, optimising our cash flows, and sustaining long-term value creation”. OML Dispute- First Bank Victory Against GHL to Boost Investors’ Confidence
