|
H1 2025 Unaudited Results Release
Oando PLC
(Incorporated in Nigeria and registered as an external company in South
Africa)
Registration number: RC 6474
(External company registration number 2005/038824/10)
Share Code on the JSE Limited: OAO
Share Code on the Nigerian Stock Exchange: UNTP
ISIN: NGOANDO00002
("Oando" or the "Company")
H1 2025 Unaudited Results Release
Lagos, Nigeria | 31 July 2025- Oando PLC ("Oando" or the "Group"), Nigeria's leading indigenous
energy group listed on both the Nigerian Exchange Ltd. and Johannesburg Stock Exchange, today
announces its unaudited results for the six months ended 30 June 2025.
Commenting on the results, Wale Tinubu CON, Group Chief Executive, Oando PLC said:
"In H1 2025, we advanced our growth agenda in our upstream division, the primary driver of the
Group's performance, by achieving a 63% 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.
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
"Six-months 2025 performance highlights
Group highlights
• Revenue declined by 15% year-on-year to N1,721 billion (H1 2024: N2,031 billion), reflecting
lower trading activity and weaker realised prices, despite stronger upstream contributions.
• Gross profit decreased by 28% to N59 billion (H1 2024: N82 billion), in line with the topline
contraction and changing segment mix.
• Capital expenditure rose to N44 billion (H1 2024: N18 billion), driven by infrastructure
upgrades, production optimisation, and integration of the NAOC asset base.
• Capital restructuring initiatives underway, with equity raise and debt conversions to be tabled
at the upcoming AGM/EGM
• All regulatory approvals have been received for the distribution process; the first tranche is
expected to be completed on or before August 8, 2025.
• Ms. Ayotola Jagun appointed Executive Director effective May 20, 2025; to be ratified at the
2025 AGM.
Exploration and Production
• Group production averaged 37,012 boepd in H1 2025, up 63% year-on-year and within
guidance, supported by the consolidation of the NAOC JV interest and improved uptime
across key assets.
• Increased crude output and higher NGL volumes, following the successful revamp of the
NGL processing plant, also contributed to the uplift.
• Completed three rig-less interventions and advanced debottlenecking of surface facilities to
enhance flow assurance and minimise downtime.
• Recorded zero lost-time injuries (LTIs) and 13.6 million LTI-free hours.
• Awarded operatorship of Block KON 13 in Angola, marking a strategic entry into the Kwanza
Basin and expanding Oando's African upstream footprint.
• Upsized the RBL 2 facility to $375 million, enhancing financial flexibility to accelerate
development of the Group's expanded 1 billion boe upstream portfolio.
Trading
• Traded 14 crude oil cargos (12.9 MMbbl) in H1 2025, up from 10 cargos (10.6 MMbbl) in H1
2024, driven by stronger offtake execution.
• No PMS cargos traded in H1 2025 (H1 2024: 7 cargos), reflecting reduced market demand
following subsidy removal and increased local refinery supply.
• Higher crude volumes helped offset the decline in PMS activity, with new pre-financing
structures progressing 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 113,864 EV rides in H1 2025, avoiding 84,814 kg of CO2 emissions via two
operational e-buses.
• Advanced development of a 1.2GW solar PV module assembly plant; land secured, and
financial modelling completed to support fundraising efforts.
• Progressed PET recycling project, with land acquisition finalised and a revised contracting
strategy in place for a 2,750 tons/month facility.
• Completed techno-economic study for a 6MW geothermal pilot project and continued
engagements with key implementation partners.
• Published Nigeria's National Wind Resource Capacity Report, mapping state-level wind
potential to inform future investments.
Mining and Infrastructure
• Signed Production Sharing Contract (PSC) with Kebbi State for joint development of lithium
and gold assets.
• Positive lithium and gold assay results confirmed across Kebbi and Kaduna licenses; partner
selection for lithium development advanced.
• Initiated assessment of historical tin lease in Kwara State to support early cash flow strategy
• Targeting investment decision on at least one mineral asset by Q3 2025 to enable near-term
production.
H2 2025 Outlook
• Target full-year production of 30,000 –40,000 boepd maintained, driven by a balanced capital
programme of 3 new wells 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 expected to be deployed in 2025; progress solar PV module assembly plant
toward FID.
Responsibility for publication
This announcement has been authorised for publication on behalf of Oando PLC by:
Adeola Ogunsemi,
Group Chief Financial Officer
About Oando PLC
Oando PLC is Africa's leading indigenous energy solutions provider listed on the Nigerian Exchange
(NGX) and the Johannesburg Stock Exchange (JSE). Oando operates across the entire energy value
chain, encompassing upstream exploration and production, trading and renewable energy initiatives.
Through its subsidiaries, Oando Energy Resources and Oando Trading, the Company holds interests
in onshore and offshore oil and gas assets and maintains a significant presence in the global energy
trading market. Oando is committed to driving Africa's energy transition and delivering innovative,
sustainable and value-driven solutions that meet the continent's unique energy needs.
For more information visit, oandoplc.com
Follow Oando on LinkedIn: https://www.linkedin.com/company/oando-plc/
X: https://x.com/Oando_PLC
Enquiries +234 (1) 2704000
Adeola Ogunsemi / Group CFO
Lagos
1 August 2025
JSE Sponsor to Oando
Questco Corporate Advisory Proprietary Limited
Disclaimer- forward-looking statements
This results release contains forward-looking statements regarding the operations, financial condition,
strategy, and prospects of Oando PLC ("the Company"). These statements are based on current
expectations and assumptions and are subject to risks and uncertainties that could cause actual
results to differ materially. Such risks include, but are not limited to, market conditions, regulatory
developments, geopolitical events, operational challenges, and the Company's ability to implement
key initiatives, including its capital re-structuring, energy transition and diversification strategy.
Readers are cautioned to carefully consider the foregoing factors and other uncertainties, and not to
place undue reliance on forward-looking statements. Forward-looking statements apply only as of the
date on which they are made, and the Company undertakes no obligation to update or revise any
forward-looking statements, except as required by applicable laws and regulations.
Operations Review
E&P Business Performance
Production Unit H12025 H12024 %Change
Crude Oil bopd 10,479 5,928 77%
Gas boepd 25,399 16,543 54%
NGLs bpd 1,135 239 375%
Total boepd 37,012 22,710 63%
1. Production in 2025 comprise Oando's 40% working interest (WI) in OMLs 60,61,62,63, 40% WI in Qua Ibo Marginal
Field, and 45% WI in Ebendo Marginal Field.
2. Volumes are subject to reconciliation and may differ from liftings within the period.
3. Gas production volumes reflect the total quantity of gas produced during the period, inclusive of volumes utilised for
operations or reinjection.
4. Natural gas volumes have been converted to barrels of oil equivalent (boe) using a standard industry conversion factor
of 5.8 million standard cubic feet (Mscf) per boe.
Group Production Performance
Production for the period was within guidance, averaging 37,012 boepd—representing a 63%
increase compared to H1 2024. This growth was largely driven by a 77% year-on-year increase in
crude oil output, supported by improved facility uptime, the reactivation of shut-in wells, and the full
consolidation of the NAOC joint venture interest.
Gas production rose by 54%, reflecting sustained output across core assets and improved network
stability. NGL volumes increased significantly by 375%, bolstered by the successful revamp of the
NGL processing plant as well as process optimisation, which enhanced recovery efficiency and
contributed meaningfully to the overall production uplift.
Drilling and field optimisation activities
To date, the Group's upstream strategy has prioritised low-hanging opportunities such as well
reactivations, rig-less interventions, and flowline repairs—delivering quick, capital-efficient production
gains. In the second half of the year, we will commence drilling activities with a focus on two wells.
During the first half, we also concentrated on debottlenecking surface facilities and optimising our
production network to maximise flow assurance and minimise downtime. Three rig-less interventions
have been successfully completed, with the remaining three scheduled for completion before year-
end.
We are already seeing the benefits of our optimisation programme, reflected in the increase in
production volumes from improved operational efficiency across key assets.
OMLs 60–63 (40% WI, Operator)
Production from OMLs 60–63 averaged 34,172 boepd in H1 2025, an 81% increase from 18,872
boepd in the prior year. This significant uplift was driven by the additional 20% working interest
secured through the NAOC acquisition, improved security surveillance across critical delivery
infrastructure, and the successful overhaul of key processing facilities.
Crude oil output rose by 145% year-on-year to 9,012 bopd, supported by the reactivation of previously
shut-in wells and improved plant reliability. Gas production increased by 61%, despite persistent
challenges such as wet gas conditions, periodic pipeline vandalism, and flowline disruptions.
Recovery efforts remain ongoing, with targeted well workovers, pipeline restoration projects, and
active intervention at the Obiaku-44 well site to stabilise and sustain volumes.
OML 56 – Ebendo (45% WI)
Average daily production declined by 28% to 2,465 boepd (H1 2024: 3,425 boepd), primarily due to
the temporary shut-in of the Ebendo North field between February and April 2025, as the Company
awaited regulatory approval to transition from the Extended Well Testing (EWT) phase to full field
development. During this period, Oando worked closely with the Nigerian Upstream Petroleum
Regulatory Commission (NUPRC) to update the Field Development Plan (FDP) in line with evolving
operational and regulatory requirements.
Following approval, the field has begun ramping back up to normal production levels. Additionally, the
commissioning of the 4.1 km evacuation pipeline in early 2025 enabled a successful transition from
trucking to full pipeline evacuation—enhancing evacuation efficiency and reducing operating costs.
OML 13 – Qua Ibo (40% WI)
Production averaged 375 bopd in H1 2025, down 9% from 413 bopd in H1 2024, primarily due to
natural field decline. Drilling activity is planned for H2 2025, with one new well expected to support
production volumes.
Entry into Angola – Block KON 13
In January 2025, Oando Energy Resources was awarded operatorship and a 45% interest in Block
KON 13 located in Angola's Kwanza Basin, following a successful bid round. The block holds
estimated prospective resources of 770–1,100 MMbbl. Oando will operate in partnership with
Effimax (30%) and Sonangol (15%), with Production Sharing Contract (PSC) negotiations currently
underway.
Pipeline Integrity and Incident Response
In April 2025, Oando experienced three incidents of pipeline sabotage, triggering the Company's
emergency response protocol. Joint Investigation Visits (JIVs) with regulators confirmed third-party
interference, and containment and repair operations were promptly executed to minimise
environmental and operational impact.
In July 2025, a spill was identified along the Ewelesuo axis at Golugbokiri, connected to the Obama-
Brass pipeline. A JIV was conducted with NOSDRA, BSMENV, and community representatives,
confirming the cause and enabling immediate containment. The Obama Flowstation was shut down,
the line depressurised, and repairs carried out.
Trunkline repairs at the affected site have now been completed, restoring the 2,800 bopd flow station
and reactivating previously shut-in wells. Oando continues to strengthen pipeline surveillance, deepen
stakeholder engagement, and implement long-term infrastructure security under its ESG and risk
mitigation framework.
HSE Performance
H12025 H12024
Fatalities (FAT) 0 0
Lost Time Injuries (LTI) 0 0
Medical Treatment Cases (MTC) 0 1
TRIR 0.00 0.10
LTIF 0.00 0.00
Near misses 17 26
Hours worked 10,281,485 9,837,643
Oando achieved strong HSE performance in H1 2025, recording zero fatalities, zero lost-time
injuries, and a TRIR of 0.00 across nearly 10.3 million hours worked. Continued focus on proactive
risk identification and mitigation contributed to a safer work environment across operations.
Trading Business Performance
Traded Volumes Unit H12025 H12024 %Change
Crude Oil MMbbl 12.88 10.63 21%
Refined Products kMT - 452 nm
Trading Performance and Strategic Developments
In H1 2025, the Trading Division continued to advance its strategic objectives despite ongoing market
volatility. A total of 14 crude oil cargos (12.88 MMbbl) were traded during the period, up from 10 cargos
(10.63 MMbbl) in H1 2024, driven by sustained momentum under Project Gazelle. No PMS cargos
were traded in the period (H1 2024: 7 cargos), reflecting continued weakness in market demand
following the removal of fuel subsidies, increased local refinery output, and FX-related constraints
impacting participation.
The division's near-term focus has remained on reinforcing operational resilience, strengthening
relationships with key counterparties, and optimising current trade flows. These efforts have yielded
steady gains, laying the groundwork for an anticipated pickup in refined product trading in H2 2025,
as market conditions stabilise and pipeline opportunities crystallise.
Progress also continues on the development of offtake-linked financing structures, with long-term
arrangements expected to unlock additional volumes and support margin expansion. Concurrently,
commercial initiatives to grow market share across West Africa remain active, alongside strategic
moves into gas trading and preliminary engagement in the metals space, aligned with the Group's
broader diversification ambitions.
Strategic entry into Caribbean Downstream Market
In February 2025, Oando Trading Division (OTD) was selected as the preferred bidder for the lease
of the Guaracara Refinery in Trinidad & Tobago, marking a significant step in the Company's entry
into the Caribbean downstream market. In July 2025, the newly appointed government reaffirmed
Oando's preferred bidder status and initiated a process to advance discussions on the refinery's
restart. Engagements with key government and regulatory stakeholders are ongoing to finalise the
lease structure and operational framework.
Clean Energy business performance
In the first half of 2025, the Group sustained momentum on its clean energy strategy, recording steady
progress across the sustainable transport, solar module assembly, Polyethylene Terephthalate (PET)
recycling, and geothermal power initiatives.
Grid-based charging for the electric bus fleet remained fully operational, facilitating over 113,000
commuter rides during the period. The electric ride-hailing initiative also advanced, with ongoing
collaboration with vehicle manufacturers and the Lagos State Government to support a pilot launch
in H2 2025.
Preparations for the 1.2GW solar module assembly plant progressed, with land secured and project
structuring completed to support imminent fundraising.
The PET recycling project also gained momentum, with a site secured and construction of the planned
2,750 tons/month facility targeted for Q4 2026.
In renewable power, the National Wind Resource Capacity Report, a publication detailing the wind
resource potential in all 36 States and the FCT, was finalized. The Group also concluded a review of
the techno-economic study for its geothermal project in collaboration with the NNPC RTI.
The clean energy portfolio remains closely aligned with national energy transition goals, with a
continued focus on scalable local execution and long-term value delivery.
Mining and Infrastructure business performance
In H1 2025, Oando Mining advanced its early-stage development strategy across key minerals
including lithium, gold, tin, and bitumen, with a focus on technical validation, state-level partnerships,
and commercial structuring.
Reconnaissance and sampling programmes were conducted across lithium prospects in Kebbi State,
with positive assay results confirming mineralisation and supporting further exploration. A Production
Sharing Contract (PSC) was finalised with the Kebbi State Government for joint development of
lithium and gold assets. The technical partner selection process for lithium progressed, with two
vendors advancing to commercial evaluation.
Gold exploration gained momentum, with promising assay results of up to 17g/t from artisanal license
areas in Kaduna State. Engagements with the Kaduna State Government are ongoing to establish a
framework for joint asset development.
For bitumen, samples were dispatched for testing to Oriental Yuhong in China, while technical and
commercial discussions commenced with the Ondo State Government. Additionally, Canadian firm
Crucible Engineering was engaged to support technical advisory and investor outreach.
Initial assessments were also carried out on tin licenses in Kwara, Kaduna, and Kogi States. A
historical tin-producing lease in Kwara has become a focus area, aligned with our early cash flow
strategy. Activities in Plateau State remain suspended due to ongoing security concerns.
Investments made during the period totalled approximately N15.8 million, covering sample testing,
ESIA certification, reconnaissance surveys, and license fees.
Looking ahead, Oando Mining aims to complete technical and economic evaluations, prioritise high-
potential assets, and make an investment decision on at least one project by the end of Q3 2025.
These efforts are integral to our vision of building a credible and commercially viable mining business,
focused on near-term production and long-term sector leadership.
Financial review
unit H12025 H12024 %Change
Revenue1 N'billion 1,721 2,031 (15)%
Crude proceeds N'billion 200 109 83%
Gas proceeds N'billion 45 28 61%
NGL proceeds N'billion 3 0.05 5900%
OTD operations N'billion 1,451 1,875 (23%)
Gross Profit N'billion 59 82 (28)%
Operating (Loss)/Profit N'billion (159) 122 (230)%
Income tax credit/ (expense) N'billion 209 (17) nm
Profit-After-Tax N'billion 63 63 0%
EPS N 5 5 0%
Cash (used in)/generated N'billion (287) 293 (198)%
from operations2
Cash and bank balance2 N'billion 228 155 47%
Total Capex3 N'billion 44 18 144%
Crude oil lifting MMbbl 2.32 1.09 113%
Gas sales4 MMscf 19.16 10.89 76%
NGL sales MMbbl 0.20 0.02 900%
Average Realized Oil Price $/bbl 66.34 84.98 (22)%
Average Realized Gas Price $/Mscf 1.65 1.96 (16)%
Average Realized NGL Price $/bbl 8.79 5.54 59%
Exchange rate N/$ 1,552 1,345 15%
1. Includes revenue from Independent Power Projects (IPP), pipeline tariffs, and electric vehicle (EV) initiatives.
2. Represents the balance at 30 June 2025 and 30 June 2024.
3. Total capex does not include asset acquisition costs.
4. Gas sales represents the portion of produced gas that was sold to third parties. Accordingly, sales gas volumes are
lower than total gas production.
Overview
Oando's first-half 2025 performance reflects the full consolidation of the NAOC JV assets acquired in
2024, driving a step-change in upstream capacity and operational resilience. Total production
increased by 72% year-on-year to 5.2 MMboe, supported by improved asset uptime, the
reinstatement of shut-in wells, and the assumption of operatorship across OMLs 60–63. Strong E&P
performance, including a 113% increase in crude oil lifted volumes and a 76% increase in natural gas
sales, helped offset softer trading revenues and weaker realised prices. Profitability was impacted by
non-cash valuation adjustments, resulting in an operating loss for the period.
The Group remains focused on optimising cash flow, maintaining cost discipline, and strengthening
its capital structure.
Revenue
Group revenue declined by 15% year-on-year to N1,721 billion in H1 2025 (H1 2024: N2,031 billion),
primarily reflecting a slowdown in trading activity, despite stronger performance in the Exploration &
Production (E&P) segment.
Key segment performance highlights include:
• Crude Oil: Lifted volumes rose 113% to 2.32 MMbbl (H1 2024: 1.09 MMbbl), contributing
N200 billion in revenue. This was partially offset by a 22% decline in the average realised price
to $66.34/bbl (H1 2024: $84.98/bbl).
• Natural Gas: Sales volumes increased 76% to 3.19 MMboe (H1 2024: 1.81 MMboe),
generating N45 billion in revenue. The average realised price declined by 16% to $9.92/boe
(H1 2024: $11.76/boe).
• Natural Gas Liquids (NGLs): Revenue grew to N3 billion, supported by a rise in volumes
(0.20 MMbbl vs. 0.02 MMbbl) and stronger pricing ($8.79/bbl vs. $5.54/bbl).
• Trading: Revenue declined to N1,451 billion (H1 2024: N1,875 billion), reflecting reduced
PMS trading activity and a total of 12.88 MMbbl of crude traded during the period.
Gross Profit
Gross profit declined by 28% to N59.2 billion in H1 2025 (H1 2024: N82.3 billion), driven by the drop
in Group revenue. Cost of sales also declined by 15% to N1,661.6 billion (H1 2024: N1,948.7 billion),
in line with reduced trading volumes and improved cost control measures.
Administrative Expenses
Administrative expenses decreased by 50% to N117.2 billion in H1 2025 (H1 2024: 233.4 billion),
largely due to a N146.5 billion exchange loss arising from the revaluation of foreign currency
denominated payables and borrowings that impacted the prior period.
Depreciation and amortisation increased by 89% to N42.7 billion (H1 2024: N22.6 billion), reflecting
higher production volumes of 5.2 MMboe (H1 2024: 4.1 MMboe) and the consolidation of the NAOC
asset base.
Impairment of assets
The Group recognised a net impairment reversal of N197.5 billion on financial assets in H1 2025,
compared to an impairment charge of N7.2 billion in H1 2024. The improvement was primarily driven
by the resolution and restructuring of previously impaired receivables, following the execution of a
settlement arrangement during the period.
Operating Profit/(Loss)
The Group reported an operating loss of N158.7 billion in H1 2025, compared to an operating profit
of N121.9 billion in H1 2024. The decline was primarily due to other operating loss of N298.3 billion
(H1 2024: other operating income of N280.2 billion), largely driven by a N311.6 billion fair value loss
recognised on the modification of financial instruments during the period.
Net Finance Income/(Costs)
Net finance income rose to N12.9 billion in H1 2025, compared to a net finance cost of N76.4 billion
in the prior year period. The improvement reflects lower accretion expenses, increased lease income
from the NAOC asset base, and reduced finance costs within the trading segment, and the impact of
debt restructuring initiatives.
Taxation
The Group recognised a tax credit of N209.1 billion in H1 2025, compared to a tax expense of N17.1
billion in H1 2024. This was driven by the reversal of previously recognised tax provisions from 2019
to 2022, alongside the recognition of unutilised capital allowances.
Profit After Tax
Profit After Tax stood at N63.3 billion in H1 2025, slightly above N62.6 billion in H1 2024, supported
by a stronger underlying performance from the E&P segment and favourable tax-related adjustments.
Earnings per share (EPS) remained flat at N5/share.
Cash Flow
Net cash used in operating activities stood at N357.4 billion in H1 2025, compared to N329.5 billion
used in H1 2024. This shift was driven by a N287.8 billion cash outflow from operations, reflecting
acquisition-related and operational expenditures, partly offset by a N58.3 billion working capital inflow
due to higher trade and other payables.
Net cash used in investing activities totalled N54.4 billion in H1 2025 (H1 2024: N0.3 billion), reflecting
a significant increase in capital expenditure of N44.5 billion compared to N18.2 billion in the prior year,
alongside a N16.5 billion premium paid on hedges.
Net cash generated from financing activities was N451.4 billion in H1 2025, compared to N364.1
billion in H1 2024. This was primarily driven by N868.1 billion in new borrowings to support acquisition-
related funding, working capital, and operational scaling. These inflows were partly offset by
significant outflows, including N385.6 billion used for debt repayments, N8.8 billion in lease and
restricted cash outflows.
Capital Structure
Total borrowings rose to N3.2 trillion as at 30 June 2025 (31 December 2024: N2.8 trillion), primarily
driven by acquisition-related financing and the impact of naira depreciation on USD-denominated
debt. Net debt stood at N3.0 trillion, while cash and cash equivalents (excluding overdrafts)
improved to N227.7 billion (Dec. 2024: N221.8 billion), reflecting stronger liquidity management.
The Group continues to focus on maintaining a healthy liquidity profile, supported by access to a
diversified lender base and active management of funding costs. In addition, efforts are underway to
refinance short-term maturities, extend average debt tenor, and implement enhanced treasury
practices and FX risk mitigation strategies to reduce earnings volatility and strengthen financial
resilience.
Funding and Capital Restructuring Update
To support long-term growth and reduce balance sheet pressure, the Group is progressing a
comprehensive capital restructuring and funding programme. The proposed initiatives aim to
strengthen capital adequacy, improve credit metrics, and enhance financial flexibility through a mix of
equity, debt conversion, and other financing instruments.
These proposals will be presented to shareholders for approval at the 2025 Annual General Meeting
and Extraordinary General Meeting scheduled for 11 August 2025. If approved, they are expected to
significantly improve the Group's capital structure, reduce foreign currency risk, and support long-
term value creation.
$375 Million Refinancing Completed to Accelerate Upstream Development
In June 2025, Oando Oil Limited (OOL), an upstream subsidiary of Oando PLC and 20% participant
in the OMLs 60–63 Joint Venture, successfully upsized its reserve-based lending facility ("RBL2") to
$375 million. Originally secured at $525 million in 2019 and paid down to $100 million by December
2024, the refinancing, led by Afreximbank with support from Mercuria, enhances the Group's financial
flexibility and supports its long-term production targets of 100,000 bopd and 1.5 Bcfd by 2029.
The transaction follows Oando's acquisition of Nigerian Agip Oil Company Limited in August 2024,
positioning the Group as operator of one of Nigeria's largest upstream portfolios with c.1 billion boe
in 2P reserves. The upsized facility will support the efficient development and monetisation of these
assets.
Hedging
To manage oil price volatility and support revenue stability, the Group implemented a hedging
programme covering 3,000 barrels per day using purchased put options with strike price of $59/bbl.
These instruments provide downside protection while preserving upside exposure.
Shareholder distribution
In January 2025, the Board of Directors of Oando PLC approved the phased distribution of 1.28 billion
ordinary shares to shareholders, following the resolution passed at the 45th Annual General Meeting
in December 2024. The distribution is structured in two equal tranches: Tranche 1, comprising
641,856,301 shares for shareholders on record as of 14 February 2025, and Tranche 2, comprising
641,856,300 shares for those on record as of 30 June 2025. For Tranche 1, the shares will be
distributed at a ratio of one new share for every twelve existing shares held as at the qualification date
and distributed.
We are pleased to announce that the distribution process has now received all necessary regulatory
approvals, including clearance from the Securities and Exchange Commission (SEC). With these
approvals secured, Oando confirms that the Tranche 1 distribution is expected to be completed on or
before August 8, 2025.
Appointment of Executive Director
Effective May 20, 2025, Ms. Ayotola Jagun was appointed by the Board of Directors as an Executive
Director of Oando PLC. A qualified legal and governance professional with over 30 years of
experience, Ms. Jagun has served as Oando's Chief Compliance Officer & Company Secretary for
the past 14 years. Her appointment underscores the Company's commitment to strong corporate
governance and inclusive leadership. The appointment will be presented for ratification by
shareholders at the 2025 Annual General Meeting.
Date: 01-08-2025 01:43:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS. |
|
