The indigenous energy major, Oando Plc, has delivered a remarkable turnaround in its nine-month (9M) results, yet the ripples of that success haven’t translated into shareholder delight.
For the nine months to 30 September 2025, Oando posted a Profit After Tax of ₦210 billion, a dramatic jump from ₦76 billion a year earlier (a leap of 164%).The company attributes the surge primarily to stronger production volumes and improved operational efficiency.
The company recorded revenue of ₦2.5 trillion, down from ₦3.2 trillion in the same period last year, which is a decline of around 20%. The drop is partly explained by reduced gasoline imports following the rise of the Dangote Refinery, which has reshaped Nigeria’s refined-products market.
Gross profit also slipped: it stood at ₦113 billion, reflecting a 42% decline, showing the shift in segment mix and market dynamics is weighing on margins.
On the operations side, Oando’s upstream efforts delivered an impressive average production of 38,121 barrels of oil equivalent per day (boepd), up 59% year-on-year. The uplift was driven by the consolidation of its joint venture interest in the Nigerian Agip Oil Company (NAOC) and improved asset uptime across its operated portfolio.
The company 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.”
Meanwhile, to support ongoing growth, Oando upsized its Reserve-Based Lending (RBL 2) facility to US$375 million. It also renegotiated key credit facilities on more favorable terms, extended repayment periods and freed up liquidity to fund its drilling programme. The company is also advancing its international expansion, having been awarded operatorship of Block KON 13 in Angola’s Kwanza Basin and selected as preferred bidder for the Guaracara Refinery in Trinidad & Tobago.
Yet despite these strong indicators in the upstream and strategic development fronts, the share price has not responded well. As at 30 October the stock was trading at ₦46.80, marking a year-to-date decline of 29.09%. For context, the share traded in a 52-week high range of ₦80.70 and a low of ₦35.75.
The company’s performance highlights the economic trade-offs in Nigeria’s energy sector: even with rising upstream productivity, downstream disruption (like the impact of the new Dangote Refinery) and shifting global oil dynamics can suppress revenue flows, which, in turn, affects investor sentiment and capital-market valuations in emerging economies.
Overall, Oando’s strong profit growth and operational momentum are promising; however, the broader macro shifts and market sentiment appear to be limiting the translation of performance into share-price gain.
