Oando Records 172% Surge in Gross Profit in Q1 2025, Sustains Growth Momentum, Wale Tinubu

Group Chief Executive Wale Tinubu says the results signal resilience, strategic clarity, and a strong outlook for the energy giant.

OandO, Group Chief Executive, Mr. Wale Tinubu

Oando Plc has reported a 172% increase in gross profit for the first quarter of 2025, marking one of its strongest quarterly performances in recent years. The announcement, made by Group Chief Executive, Mr. Wale Tinubu, reflects what the company describes as sustained growth momentum amid Nigeria’s challenging economic landscape.

The energy company, one of Nigeria’s leading indigenous oil and gas firms, said the performance was driven by improved operational efficiency, increased production output, and strong cost discipline.

“This performance is a reflection of consistent strategy, disciplined execution, and our ability to adapt and grow despite the macroeconomic headwinds,” Tinubu said in a statement accompanying the Q1 results.

Recovery and Strategic Turnaround

Oando’s latest figures represent a significant turnaround from its previous financial trajectory. Following several years of operational restructuring and regulatory challenges, the company began to show signs of steady recovery in late 2023. By the end of 2024, it had recorded a 60% increase in profit — a precursor to the more dramatic results seen in Q1 2025.

The company attributes the growth to its renewed focus on upstream production, midstream asset optimization, and a push toward cost-effective operations. Its international partnerships and refined capital structure have also helped shore up investor confidence and improve its cash flow position.

Sector Implications

Oando’s growth has broader implications for Nigeria’s energy sector, which has been grappling with foreign exchange shortages, oil theft, and regulatory bottlenecks. The company’s performance is seen by analysts as a sign of resilience within the local oil and gas industry.

Industry observers note that Oando’s success is a potential signal of a gradual recovery for indigenous operators, especially those able to align commercial strategy with operational efficiency and policy compliance.

“Oando’s Q1 results demonstrate that with the right corporate governance and market strategy, indigenous companies can deliver world-class results,” said an energy analyst with Lagos-based Afrinvest.

Looking Ahead

With the first quarter of 2025 behind it, Oando says it remains focused on expanding its market footprint while maintaining profitability. The company has also indicated a growing interest in energy transition investments, including gas infrastructure and cleaner energy solutions.

“Our long-term growth will increasingly incorporate sustainable practices and innovation, ensuring we remain competitive in a fast-changing global energy landscape,” Tinubu said.

While challenges in the global oil market persist, Oando’s strong start to the year puts it in a favourable position to deliver value to shareholders and contribute meaningfully to Nigeria’s economic growth.

The company’s Q1 performance, analysts say, is not just a financial milestone but a reflection of the capacity of indigenous energy firms to thrive in adversity.

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