Oando PLC, a prominent indigenous energy group, has embarked on an ambitious journey toward diversifying its portfolio and solidifying its position as a key player in the African energy landscape. The company’s Q1 2025 unaudited results showcase significant progress across various initiatives, including upstream operations, renewable energy projects, and expansion into new geographical territories. A key highlight of this period is the advancement of a groundbreaking 1.2-gigawatt solar PV module assembly plant, a project poised to revolutionize Nigeria’s renewable energy sector. Land acquisition has been secured, and financial modelling is complete, marking crucial steps towards realizing this ambitious venture. This project, a collaboration with the Rural Electrification Agency (REA), is not only significant for its scale but also for its innovative incorporation of a recycling line, a first for Africa. This feature will allow for the sustainable repurposing of old and dysfunctional solar panels, further solidifying Oando’s commitment to environmentally responsible practices. With the first 600 MW line slated for a 2026 rollout, the project promises to significantly boost local manufacturing capacity, generate employment opportunities, and expand energy access across Nigeria.
Beyond the solar plant, Oando’s clean energy endeavors extend to electric mobility. The company reported considerable progress in its electric vehicle program, achieving over 53,000 electric vehicle rides and averting a substantial amount of CO2 emissions in the first quarter of 2025 alone. These achievements underscore Oando’s commitment to sustainable transportation solutions and its contribution to reducing Nigeria’s carbon footprint. The company plans to deploy 50 electric buses in 2025, further strengthening its presence in the e-mobility sector. This integrated approach to clean energy, encompassing both solar power generation and electric transportation, positions Oando as a leader in the transition towards a more sustainable energy future for Nigeria. The company’s dedication to these initiatives not only aligns with global sustainability goals but also contributes significantly to local economic development and job creation.
Oando’s Q1 2025 performance also reflects robust growth in its traditional upstream operations. The successful integration of the NAOC assets, coupled with improved asset reliability and the reactivation of shut-in wells, has led to a substantial 72% year-on-year increase in production volumes. This positive trajectory underscores the company’s focus on operational efficiency and disciplined execution. With secured working capital providing financial flexibility, Oando is well-positioned to accelerate the execution of its strategic plans, including targeted infrastructure upgrades, rig-less well interventions, and an extensive drilling program slated for the latter half of the year. This strategic approach aims to maximize the value of the company’s expanded upstream portfolio and further solidify its position in the oil and gas sector.
The company’s financial performance in Q1 2025 paints a picture of robust growth and increasing profitability. A remarkable 172% surge in gross profit to N85 billion and a 2% year-on-year revenue growth to N933 billion demonstrate the effectiveness of Oando’s operational strategies and its ability to capitalize on market opportunities. Looking ahead, the company has reaffirmed its full-year production target and allocated substantial capital expenditure towards drilling, infrastructure development, and ESG projects, with a focus on cost reduction. This forward-looking approach emphasizes the company’s commitment to sustainable growth and responsible resource management.
Oando’s strategic expansion beyond Nigeria is also noteworthy. The company’s entry into Angola’s Kwanza Basin marks a significant milestone in its ambition to scale its upstream footprint across Africa. This expansion into new territories demonstrates Oando’s commitment to diversifying its portfolio and tapping into the vast potential of the African energy market. Furthermore, being named the preferred bidder for the Guaracara Refinery in Trinidad and Tobago signifies the strength of Oando’s integrated business model and underscores its growing influence in the Afro-Caribbean energy landscape. This strategic move highlights the company’s evolution into a more geographically diversified energy company, poised to capitalize on opportunities across multiple regions.
In addition to its core business activities, Oando continues to explore innovative and sustainable energy solutions. While a waste-to-energy project with BGE is currently under feasibility review due to capital cost considerations, the company has completed a techno-economic study for a 6 MW geothermal pilot project and is actively engaged with key partners. This ongoing exploration of alternative energy sources reflects Oando’s commitment to innovation and its proactive approach to shaping a sustainable energy future. The company’s diversified portfolio, coupled with its strategic investments in both traditional and renewable energy sectors, positions it for continued growth and success in the evolving global energy landscape. Oando’s vision extends beyond immediate gains, focusing on long-term sustainability and its contribution to the development of a robust and diversified energy sector in Africa and beyond.
