Oando PLC Reports Resilient Profit Despite Operational Headwinds in Q1 2025 - Miss Analyst Forcast (Awaiting Share Bonus)

Three-months 2025 performance highlights Group highlights

• Revenue grew by 2% year-on-year to ₦933 billion (Q1 2024: ₦915 billion), supported by higher upstream volumes and FX revaluation gains.

• Gross profit increased by 172% to ₦85 billion (Q1 2024: ₦31 billion), reflecting stronger E&P margins.

• Capital expenditure rose to ₦45 billion (Q1 2024: ₦9 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 prefinancing 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 statelevel 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 longterm diversification into base metals.

• Focused on de-risking and progressing assets with near-term production potential while securing strategic funding and technical partners2025

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

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