The domestic upstream energy sector is seeing shifts in profitability as indigenous groups transition from asset acquisition to direct operational execution. Oando Plc reported an audited profit after tax of ₦204.8 billion for the financial year ended December 31, 2025. This performance marks the first full-year fiscal contribution from the newly integrated Nigerian Agip Oil Company (NAOC) joint venture assets.
A key highlight of the fiscal period was the group’s sharp turnaround in cash conversion. The firm generated ₦258.3 billion in positive cash from core operations, helping drive its overall cash and cash equivalents up by 172% to close the year at ₦422.9 billion.
Production Surges and Infrastructure Upgrades
The consolidation of the NAOC assets significantly boosted the firm’s upstream volumes. Net average daily production expanded by 32% year-on-year to reach 32,482 barrels of oil equivalent per day (boepd).
Beyond baseline processing revamps, the firm expanded its infrastructure footprint by completing and commissioning the Obiafu-44 gas-condensate well. This project represents the company’s first operated development well since assuming control of the joint venture fields. Alongside these capacity expansions, field operations maintained a stable safety record, logging zero fatalities and zero lost-time injuries with a total recordable incident rate (TRIR) of 0.05.
Production Guidance and Green Transition Matrix
With the asset portfolio fully integrated, the corporate group is targeting aggressive organic scaling for the next production cycle.
To complement its core fossil fuel business, the energy group is expanding its green transition portfolio. This includes allocating capital toward regional electric bus deployments, waste recycling initiatives, and modular gas-to-power infrastructure projects. By balancing high-yield, short-cycle upstream projects with long-term carbon mitigation assets, the enterprise aims to protect its revenue streams while helping to stabilize the region’s expanding power grids.
