Lower trading activity, especially from Premium Motor Spirit (PMP), otherwise known as petrol, and weaker realised prices amid stronger performance in the Exploration and Production (E&P) segment of the business contributed to a 15 per cent year-on-year decline in the revenue of Oando Plc in the first six months of 2025.
Details of the financial statements of the energy firm released to the Nigerian Exchange (NGX) Limited showed that the company’s revenue slipped to N1.7 trillion from the N2.0 trillion achieved in the same period of 2024, amid a decline in the gross profit by 28 per cent to N59 billion from N82 billion, in line with the topline contraction and changing segment mix.
Business Post reports that Oando also recorded an operating loss of N159 billion between January and June 2025 versus an operating profit of N122 billion in the corresponding period of last year, with ...-tax profit remaining unchanged at N63 billion.
From crude oil sales, the company generated about N200 billion from 2.32 MMbbl versus the 1.09 MMbbl sold in H1 2024, with sales volume from natural gas rising by 76 per cent to 3.19 MMboe from 1.81 MMboe in the first half of last and N45 billion generated.
Earnings from PMS trading went down to N1.5 trillion from N1.9 trillion.
“In H1 2025, we advanced our growth agenda in our upstream division, the primary driver of the group’s performance, by achieving a 63 per cent year-on-year increase in production volumes.
“This was driven by the successful consolidation of NAOC’s assets, early gains from our optimization programme and our assumption of operatorship, which enabled us implement holistic security measures amid improved community relations, resulting in enhanced infrastructure reliability, higher production volumes, and greater operational resilience,” the chief executive of Oando, Mr Wale Tinubu, stated.
He said further that, “Our trading segment faced headwinds which exerted pressure on the entity’s revenue and the group’s topline as a result of declining PMS imports into the country due to rising local refining capacity from the Dangote Refinery, a positive development that enhances Nigeria’s energy security and self-sufficiency.
“In response, we diversified our crude offtake sources, optimized trade flows, and expanded into LNG and metals. These initiatives are already gaining traction and will support stronger performance in H2.”
“Oando Clean energy also advanced its e-vehicles, PET recycling and solar module assembly projects, initiatives critical to our long-term diversification goals and broader commitment to environmental sustainability.
“As we enter the second half of the year, our priorities are clear: accelerate upstream monetization through drilling and production assurance, strengthen trading performance, and execute our capital restructuring initiatives to restore balance sheet flexibility. With a focused strategy and a clear execution roadmap, we remain committed to delivering sustained value to our shareholders,” Mr Tinubu added.