Wrap Text
Q1 2025 Unaudited Results Release
Oando PLC
(Incorporated in Nigeria and registered as an external
company in South Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
("Oando" or the "Company")
25 June 2025
Q1 2025 UNAUDITED RESULTS RELEASE
Lagos, Nigeria | 25 June 2025- Oando PLC ("Oando" or the "Group"), Nigeria's
leading indigenous energy group listed on both the Nigerian Exchange Ltd. and
Johannesburg Stock Exchange, today announces its unaudited results for the three
months ended 31 March 2025.
Commenting on the results, Wale Tinubu CON, Group Chief Executive, Oando
PLC said:
"Q1 2025 marked a strong start to the year for us, with a 72% year-on-year increase
in production volumes as a result of the successful integration of the NAOC assets
into our portfolio, improved asset reliability and the reactivation of shut-in wells,
reflecting early wins from our focus on operational efficiency and disciplined execution.
Beyond Nigeria, we have expanded our regional presence with our entry into Angola's
Kwanza Basin marking a major milestone in scaling our upstream footprint across
Africa. Similarly, being named preferred bidder for the Guaracara Refinery in Trinidad
and Tobago demonstrates the strength of our integrated business model, our growing
role in the Afro-Caribbean landscape, and a reflection of our evolution into a more
geographically diversified energy company.
Following a transformative 2024, our priority is to maximize the value of our expanded
upstream portfolio through targeted infrastructure upgrades, rig-less well interventions
and an extensive drilling programme in the second half of the year. These activities
are now enabled by the working capital we have secured, giving us financial flexibility
to accelerate execution. We are also taking decisive action to restructure our balance
sheet towards restoring financial resilience.
With a full-year contribution from the NAOC assets, a more diversified trading
operations and an optimized balance sheet, we are confident in our ability to generate
stronger cash flows, reduce leverage, and deliver sustainable value to our
shareholders."
Three-months 2025 performance highlights
Group highlights
• Revenue grew by 2% year-on-year to N933 billion (Q1 2024: N915 billion),
supported by higher upstream volumes and FX revaluation gains.
• Gross profit increased by 172% to N85 billion (Q1 2024: N31 billion), reflecting
stronger E&P margins.
• Capital expenditure rose to N45 billion (Q1 2024: N9 billion), driven by asset
integration and production optimisation initiatives following the NAOC
acquisition.
• Pursuant to shareholder approval, the Board approved the distribution of 1.28
billion ordinary shares, reinforcing value return commitments.
Exploration and Production
• Achieved average daily production of 37,595 boepd (within guidance), up 72%
year-on-year, driven by the full consolidation of NAOC assets and well
reactivations.
• Crude oil production rose 132% to 11,369 bopd, gas volumes grew 56% to
25,185 boepd, and NGL production increased 30% to 1,040 bpd.
• Recorded zero lost-time injuries (LTIs) and 12.3 million LTI-free hours,
underscoring continued HSE excellence.
• Awarded operatorship of Block KON 13 in Angola, marking a strategic entry
into the Kwanza Basin and expanding Oando's African upstream footprint.
Trading
• 6 crude oil cargos (5.96 MMbbl) traded in Q1 2025, up from 4 cargos (4.86
MMbbl) in Q1 2024, driven by stronger offtake execution.
• No PMS cargos traded in Q1 2025 (Q1 2024: 4 cargos), reflecting lower market
demand post-subsidy removal and increased local refinery supply.
• Increased crude volumes partially offset reduced PMS activity, with new pre-
financing structures advancing to support future growth.
• Selected as preferred bidder for the Guaracara Refinery in Trinidad & Tobago,
establishing a strategic foothold in the Caribbean downstream market.
Clean Energy
• Achieved 53,941 EV rides in Q1 and 42,779 kg of CO2 emissions averted
through 2 operational e-buses under the electric mobility programme.
• Advanced development of a 1.2GW solar PV module assembly plant, with land
secured and financial modelling completed.
• Progressed PET recycling facility with land acquisition finalised and revised
contracting strategy in place for a 2,750 tons/month plant.
• Re-evaluated waste-to-energy project with BGE due to capital cost
considerations; feasibility review ongoing.
• Completed techno-economic study for a 6MW geothermal pilot, continued
engagements with key partners.
• Published Nigeria's National Wind Resource Capacity Report, identifying state-
level wind potential across the country.
Mining and Infrastructure
• Advanced partnerships on bitumen and lithium development; sample testing
confirmed resource viability.
• Launched early-stage assessments for gold and tin assets, supporting long-
term diversification into base metals.
• Focused on de-risking and progressing assets with near-term production
potential while securing strategic funding and technical partners.
2025 Outlook
• Target full-year production of 30–40 kboepd maintained, driven by a balanced
capital programme of 3 new wells, 9 workovers, and 6 rig-less interventions
• Projected capex of $250–270 million focused on drilling, infrastructure, and
ESG projects, with a 20% cost reduction goal
• Trading guidance of 25 – 35 MMbbl crude oil; 750,000 – 1,000,000 MT refined
products
• 50 electric buses to be deployed in 2025; progress solar PV module assembly
plant toward FID.
• Executing capital restructure and liquidity optimisation to improve financial
resilience and returns.
Responsibility for publication
This announcement has been authorised for publication on behalf of Oando PLC by:
Adeola Ogunsemi
Group Chief Financial Officer
About Oando PLC
Oando PLC is Africa's leading indigenous energy solutions provider listed on the Nigerian
Exchange (NGX) and the Johannesburg Stock Exchange (JSE). Oando operates across the
entire energy value chain, encompassing upstream exploration and production, trading and
renewable energy initiatives.
Through its subsidiaries, Oando Energy Resources and Oando Trading, the Company holds
interests in onshore and offshore oil and gas assets and maintains a significant presence in
the global energy trading market. Oando is committed to driving Africa's energy transition and
delivering innovative, sustainable and value-driven solutions that meet the continent's unique
energy needs.
For more information visit, oandoplc.com
Follow Oando on LinkedIn: https://www.linkedin.com/company/oando-plc/
X: https://x.com/Oando_PLC
Enquiries +234 (1) 2704000
Adeola Ogunsemi / Group CFO
Disclaimer- forward-looking statements
This results release contains forward-looking statements regarding the operations, financial condition,
strategy, and prospects of Oando PLC ("the Company"). These statements are based on current
expectations and assumptions and are subject to risks and uncertainties that could cause actual results
to differ materially. Such risks include, but are not limited to, market conditions, regulatory
developments, geopolitical events, operational challenges, and the Company's ability to implement key
initiatives, including its capital re-structuring, energy transition and diversification strategy. Readers are
cautioned to carefully consider the foregoing factors and other uncertainties, and not to place undue
reliance on forward-looking statements. Forward-looking statements apply only as of the date on which
they are made, and the Company undertakes no obligation to update or revise any forward-looking
statements, except as required by applicable laws and regulations.
Operations Review
E&P Business Performance
Production Unit Q12025 Q12024 %Change
Crude Oil bopd 11,369 4,907 132%
Gas boepd 25,185 16,141 56%
NGLs bpd 1,040 800 30%
Total boepd 37,595 21,848 72%
1. Production comprise Oando's 40% working interest (WI) in OMLs 60,61,62,63, 40% WI in Qua Ibo
Marginal Field, and 45% WI in Ebendo Marginal Field.
2. Volumes are subject to reconciliation and may differ from liftings within the period.
3. Gas production volumes reflect the total quantity of gas produced during the period, inclusive of volumes
utilised for operations or reinjection.
4. Natural gas volumes have been converted to barrels of oil equivalent (boe) using a standard industry
conversion factor of 5.8 million standard cubic feet (Mscf) per boe.
Production for the quarter was within guidance, averaging 37,595 boepd—a 72% increase
from Q1 2024. This uplift was primarily driven by a 132% rise in crude oil volumes,
underpinned by improved uptime, reactivation of previously shut-in wells, and the full
consolidation of the NAOC JV interest. Gas and NGL production also rose by 56% and 30%,
respectively, reflecting stable output across core assets and enhanced infrastructure reliability.
OMLs 60–63 (40% WI, Operator)
Production from OMLs 60–63 averaged 35,535 boepd in Q1 2025, up 77% from 20,036 boepd
in the prior year. This increase was underpinned by the additional 20% working interest
acquired through the NAOC transaction, enhanced security surveillance along delivery
pipelines, and the successful revamp of key processing infrastructure.
Crude oil output rose by 132% year-on-year to 11,369 bopd, bolstered by the reinstatement of
previously inactive wells and improved plant uptime. Gas production increased by 56%,
despite ongoing operational challenges including wet gas production, pipeline vandalism, and
flow line disruptions. Recovery efforts remain ongoing, with targeted well workovers, pipeline
repairs, and a rig currently on site at Obiaku-44 to restore and stabilise volumes.
To date, the Group's upstream strategy has prioritised low-hanging opportunities such as well
reactivations, rig-less interventions, and flowline repairs—delivering quick, capital-efficient
production gains. The focus on drilling new wells will commence in the second half of the year,
once near-term optimisation efforts have been fully executed.
OML 56 – Ebendo (45% WI)
Average daily production rose by 20% to 1,681 boepd (Q1 2024: 1,396 boepd), following the
completion of extended well testing and the transition to full pipeline evacuation via the 4.1 km
evacuation line completed in early 2025. The decommissioning of trucking operations has
improved evacuation efficiency and reduced operating costs.
OML 13 – Qua Ibo (40% WI)
Production averaged 379 bopd in Q1 2025, down 9% from 416 bopd in Q1 2024, primarily due
to natural field decline. Drilling activity is planned for H2 2025, with one new well expected to
support production volumes.
Entry into Angola – Block KON 13
In January 2025, Oando Energy Resources was awarded operatorship and a 45% interest in
Block KON 13 located in Angola's Kwanza Basin, following a successful bid round. The
block holds estimated prospective resources of 770–1,100 million barrels. Oando will
operate in partnership with Effimax (30%) and Sonangol (15%), with Production Sharing
Contract (PSC) negotiations currently underway.
Pipeline Incidents and Response Measures
In April 2025, Oando experienced three incidents of pipeline sabotage, triggering the
Company's emergency response protocol. Containment teams were immediately deployed,
and repair works commenced promptly to minimise environmental and operational impact.
Joint Investigation Visits (JIVs) were conducted with regulators, confirming third-party
interference as the cause of the breaches. The Company continues to strengthen surveillance
systems, deepen stakeholder engagement, and implement long-term infrastructure security
measures as part of its broader ESG and risk mitigation framework.
HSE Performance
Q12025 Q12024
Fatalities (FAT) 0 0
Lost Time Injuries (LTI) 0 0
Medical Treatment Cases (MTC) 0 1
TRIR 0.00 0.20
LTIF 0.00 0.00
Near misses 8 14
Hours worked 4,870,121 4,904,431
Oando achieved strong HSE performance in Q1 2025, recording zero fatalities, zero lost-
time injuries, and a TRIR of 0.00 across nearly 4.9 million hours worked. Continued focus on
proactive risk identification and mitigation contributed to a safer work environment across
operations.
________________________________________________________________________
Trading Business Performance
Traded Volumes Unit Q12025 Q12024 %Change
Crude Oil MMbbl 5.96 4.86 23%
Refined Products kMT - 125 nm
During the first quarter of 2025, the trading division continued to make steady progress in line
with its strategic objectives. The business recorded a total of 6 crude oil cargos traded (5.96
MMbbl), up from 4 cargos in Q1 2024 (4.86 MMbbl), supported by sustained activity under
Project Gazelle. No PMS cargos were traded during the quarter (Q1 2024: 4 cargos), reflecting
subdued market demand following fuel subsidy removal, increased supply from local
refineries, and limited FX driven participation.
Our near-term focus has been on strengthening operational foundations, deepening
counterparty relationships, and optimising existing trade flows—delivering steady gains
despite market headwinds. Full-scale trading activity, particularly in refined products, is
expected to resume in the second half of the year as market conditions stabilise and pipeline
opportunities mature.
New offtake-linked financing structures are also progressing, with long-term arrangements
expected to support future volume growth and margin expansion. Commercial efforts to
deepen regional market share across West Africa remain active, alongside strategic moves
into gas trading and exploratory discussions in the metals segment in line with the Group's
broader diversification strategy
Strategic entry into Caribbean Downstream Market
In February 2025, Oando Trading Division (OTD) was selected as the preferred bidder for
the lease of the Guaracara Refinery in Trinidad & Tobago, marking its entry into the
Caribbean downstream market. Engagements with government and regulatory stakeholders
are ongoing to finalise the lease structure and operational framework.
_________________________________________________________________________
Clean Energy business performance
The Group continued to advance its clean energy strategy during the first quarter of 2025,
achieving meaningful progress across sustainable transport, solar module manufacturing,
PET recycling, and renewable power initiatives.
In the electric mobility space, grid-based charging operations for the Group's bus fleet were
fully restored, enabling over 53,000 commuter rides during the quarter. The electric ride-hailing
initiative also progressed, with continued engagements with vehicle manufacturers and the
Lagos State Government to lay the groundwork for pilot deployment in the second half of the
year.
Preparatory work also advanced for the development of a 1.2GW solar module assembly
plant, with land secured and a financial model completed in readiness for fundraising. In
parallel, the Group progressed its PET recycling initiative, securing a project site and targeting
the start of construction for a 2,750 tons/month facility in Q4 2025.
In the renewable power segment, engagements were held with the NNPC Renewable
Technology Initiative to review the completed techno-economic study for the Group's
geothermal power project. Meanwhile, the proposed waste-to-energy plant is under review
due to high equipment costs, with options being explored to enhance the project's commercial
viability.
Overall, the clean energy portfolio remains aligned with Nigeria's national energy transition
goals, with a continued emphasis on local execution, scalable impact, and long-term value
creation.
_________________________________________________________
Mining and Infrastructure business performance
The mining division made steady progress in Q1 2025, advancing early-stage development
across its bitumen, lithium, gold, and tin assets. During the quarter, bitumen samples were
dispatched to China for quality testing in support of ongoing partnership and farm-down
discussions. In Kebbi State, reconnaissance surveys and laboratory analysis confirmed the
presence of lithium mineralisation, reinforcing interest from prospective partners and state-
level stakeholders.
Progress was also made on the Group's gold and tin development efforts, with discussions
advancing under a proposed production-sharing framework for gold, and the
commencement of field evaluations across eight tin licences in Jos—marking a step toward
diversification into base metals.
A total of N8.1 million was invested during the quarter in completing the Environmental and
Social Impact Assessment for the bitumen project, alongside targeted spending on lithium
licensing, laboratory analysis, and project logistics.
Looking ahead, the focus remains on securing technical and funding partners, while
prioritising assets with near-term production potential that can deliver early returns and
support the Group's broader strategy of long-term mineral development and value creation.
Financial review
unit Q12025 Q12024 %Change
Revenue N'billion 933 915 2%
Gross crude proceeds N'billion 98 60 63%
Gas proceeds N'billion 24 16 50%
NGL proceeds N'billion 0.43 0.01 4200%
OTD operations N'billion 806 843 (4%)
Gross Profit N'billion 85 31 174%
Operating (Loss)/Profit N'billion (120) 117 (203)%
Income tax credit/ (expense) N'billion 166 (11) nm
Profit-After-Tax N'billion 113 59 92%
EPS N 9 5 80%
Cash (used in)/generated N'billion (177) 379 (147)%
from operations1
Cash and bank balance1 N'billion 304 330 8%
Total Capex2 N'billion 46 9 411%
Crude oil lifting MMbbl 0.89 0.42 112%
Gas sales3 MMscf 8.89 5.35 66%
NGL sales MMbbl 0.53 0.02 2550%
Average Realized Oil Price $/bbl 73.56 102.81 (28)%
Average Realized Gas Price $/Mscf 1.80 2.11 (15)%
Average Realized NGL Price $/bbl 7.5 5.6 34%
1. Represents the balance at 31 March 2025 and 31 March 2024.
2. Total capex does not include asset acquisition costs.
3. Gas sales represents the portion of produced gas that was sold to third parties. Accordingly, sales gas
volumes are lower than total gas production.
Overview
Oando's First Quarter 2025 performance reflects a strong operational start to the year,
underpinned by the full consolidation of the NAOC JV assets acquired in 2024. The Group
delivered significant growth in production volumes and gross profitability, despite continued
macroeconomic volatility and FX-driven pressures. Total production rose 72% year-on-year,
supported by improved asset uptime, the reinstatement of shut-in wells, and the assumption
of operatorship across OMLs 60–63. While profitability was impacted by mark-to-market
losses on financial instruments and acquisition-related balance sheet movements, core
fundamentals remain resilient. The Group is focused on translating its expanded upstream
capacity into long-term value through disciplined execution, cost control, and cash flow
optimisation.
Revenue
Group revenue grew by 2% year-on-year to N933 billion (Q1 2024: N915 billion), supported
by stronger performance in the E&P segment and favourable FX revaluation gains following
the further devaluation of the Naira (Q1 2025: N1,502.01/$1 vs Q1 2024: N1,410.41/$1).
However, softer trading activity during the period weighed on overall topline growth. Key
performance drivers included:
• Crude Oil lifted volumes rose 112% to 0.89 MMbbl (Q1 2024: 0.42 MMbbl),
contributing N98 billion in revenue, partially offset by a 28% decline in the average
realised price to $73.56/bbl (Q1 2024: $102.81/bbl).
• Natural Gas sales volumes increased 66% to 1.5 MMboe (Q1 2024: 0.9 MMboe),
generating of N24 billion in revenue. The average realised price declined by 15% to
$1.80/Mscf (Q1 2024: $2.11/Mscf).
• Natural Gas Liquids (NGLs) revenue increased to N0.43 billion, supported by both
higher prices ($7.5/bbl vs. $5.6/bbl) and significant uplift in volumes (0.53 MMbbl vs.
0.02 MMbbl).
• Trading revenue declined to N805.8 billion (Q1 2024: N843.5 billion), reflecting
reduced PMS activity and 5.96 MMbbl of crude traded
Gross Profit
Gross profit rose by 172% to N85.4 billion in Q1 2025 (Q1 2024: N31.4 billion), driven by
improved upstream margins and lower cost of sales. Total cost of sales declined 4% to N847.1
billion (Q1 2024: N884.0 billion), reflecting FX revaluation despite increased production costs
related to the NAOC acquisition.
Administrative Expenses
Administrative expenses decreased by 46% to N86.2 billion in Q1 2025 (Q1 2024: 158.9
billion), largely due to a N116.2 billion exchange loss arising from the revaluation of foreign
currency denominated payables and borrowings.
Depreciation and amortisation rose to N22 billion in Q1 2025 (Q1 2024: N12 billion), primarily
reflecting higher production volumes of 2.7 MMboe (Q1 2024: 1.8 MMboe) and consolidation
of the NAOC asset base.
Impairment of assets
The Group recorded a net impairment reversal of N182.3 billion on financial assets in Q1 2025,
(Q1 2024: N3.4 billion impairment charge). This improvement was driven by the resolution and
restructuring of previously impaired receivables, following the execution of a settlement
arrangement.
Operating Profit/(Loss)
The Group reported an operating loss of N120.3 billion in Q1 2025 (Q1 2024 operating profit:
N117.2 billion). This was largely attributable to other operating loss of N301.9 billion (Q1 2024
other operating income: N248.1 billion), driven mainly by a N311.6 billion fair value loss on
modification of financial instruments.
Net Finance Income/(Costs)
Net finance income increased to N67.8 billion in Q1 2025 (Q1 2024 net finance cost: N46.9
billion), supported by lower accretion expenses, increased lease income from the NAOC asset
base and reduced finance costs in the trading segment. These gains were partially offset by
FX-related impacts and holding company obligations.
Taxation
The Group recognised a tax credit of N165.6 billion in Q1 2025, (Q1 2024 tax expense: N11.0
billion in Q1 2024), largely driven by the reversal of CIT provisions from 2019-2022, and
deferred tax income, and unutilised capital allowances across various subsidiaries.
Profit After Tax
Profit After Tax stood at N113.1 billion in Q1 2025 (Q1 2024: N59.3 billion), reflecting stronger
underlying performance for the E&P segment and the tax-related effects described above.
Earnings Per Share (EPS) increased to N9/sh, compared to N5/sh in Q1 2024.
Cash Flow
Net cash used in operating activities stood at N176.9 billion in Q1 2025, compared to N379.3
billion generated in Q1 2024. This shift was driven by a N213.5 billion cash outflow from
operations, reflecting acquisition-related outlays, partly offset by a N46.9 billion working capital
inflow from higher trade and other payables.
Net cash used in investing activities totalled N38.9 billion (Q1 2024: N1.2 billion), reflecting a
significant increase in capital expenditure of N45.7 billion compared to N9.0 billion in the prior
year, reflecting increased investment in asset development and infrastructure upgrades.
Net cash generated from financing activities was N327.2 billion (Q1 2024 outflow: N157.5
billion). This was primarily driven by N347.2 billion in new borrowings to support acquisition-
related funding, working capital, and operational scaling. The period also benefited from a
N33.9 billion inflow from the release of restricted cash, partially offset by debt repayments and
lease obligations. The financing inflows helped cushion the impact of higher operating and
investing outflows, enabling the Group to maintain a closing cash and equivalents balance of
N266.6 billion (Q1 2024: N329.8 billion), despite the increased capital intensity.
Capital Structure
Total borrowings increased to N3.0 trillion (2024: N2.8 trillion), primarily reflecting acquisition-
related financing and currency revaluation impacts on USD-denominated debt. Net debt
stood at N2.7 trillion. A strengthened cash position and access to a diversified lender base
provided liquidity headroom.
The Group remains committed to optimising its capital structure through deleveraging,
refinancing short-term maturities and rebalancing its funding mix. Enhanced treasury
practices and FX risk mitigation measures are also being considered to manage exposure
and reduce volatility.
Hedging
To manage oil price volatility and support revenue stability, the Group implemented a hedging
programme covering 3,000 barrels per day using purchased put options with strike prices of
$55/bbl and $59/bbl. These instruments provide downside protection while preserving upside
exposure.
_________________________________________________________________________
Shareholder distribution
In January 2025, Oando PLC's Board of Directors approved the phased distribution of 1.28
billion ordinary shares to shareholders following the resolution passed at the 45th Annual
General Meeting in December 2024. This distribution will occur in two tranches: Tranche 1,
comprising 641,856,301 shares, for shareholders on record as of 14 February 2025, and
Tranche 2, also comprising 641,856,300 shares, for those on record as of 30 June 2025. The
shares will be applied at a ratio of one new share for every twelve existing shares held. The
distribution will be effected upon receipt of all relevant regulatory approvals and within 36
months commencing 30 January 2025.
JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited
Date: 26-06-2025 07:12:00
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