Oando Plc posted a significantly higher income tax credit of ₦226.1 billion in 2025 from ₦163.7 billion the previous year, amid concerns over the company’s weaker operations and financial position.
A review of its 2025 audited financial statement released on Sunday, February 1, shows that the tax credit boosted Oando’s profit for the year, despite a sharp decline in revenue and operating income.
A report earlier by Pinnacle Daily pointed out that tax credit to Oando jumped by 303 per cent in the third quarter of 2025 amid the company’s poor financial performance over the past years.
A breakdown of the full-year results revealed that Oando’s revenue fell to ₦3.21 trillion from ₦4.09 trillion in 2024, reflecting weaker performance across its core operations.
Operating income dropped sharply to ₦50.2 billion, down from ₦569.7 billion in the previous year.
Profit before tax also declined significantly, falling to ₦15.2 billion from ₦383.8 billion in 2024, while earnings per share rose to ₦30 from ₦18.
Despite the weaker operating results, Oando reported a profit for the year of ₦241.3 billion, up from ₦220.1 billion a year earlier, largely due to the income tax credit.
A review of the results indicated that the tax credit was largely linked to Oando’s Exploration and Production (E&P) segment and a sharp increase in deferred tax assets.
While the group recorded a consolidated tax credit of ₦226.1 billion, the E&P business alone accounted for a tax credit of ₦249.6 billion, which was partly offset by tax expenses in other segments, such as Corporate and Supply & Trading.
Deferred tax assets rose sharply from ₦60.5 billion in 2024 to ₦234.2 billion in 2025, as the increase suggests a change in management’s outlook on the company’s ability to utilise past losses against future profits.
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However, Oando’s balance sheet continues to show financial strain as its equity stood at a negative ₦553.8 billion, worsening from a negative ₦361.0 billion in 2024.
Its total liabilities rose to ₦7.26 trillion, exceeding total assets of ₦6.70 trillion, while total borrowings climbed to ₦3.01 trillion.
Legal battles slow plans to go private
Meanwhile, Oando’s plan to go private, which it began in 2021 after minority shareholders, led by Venus Construction Limited, remains stalled by legal challenges.
Ocean and Oil Development Partners Limited (OODP), Oando’s major shareholder, had proposed to acquire minority holdings at ₦7.07 per share through a court-approved Scheme of Arrangement.
If completed, the deal would lead to Oando’s delisting from the Nigerian Exchange Group (NGX) and the Johannesburg Stock Exchange (JSE); however, court rulings and ongoing lawsuits have delayed the process, with some cases now adjourned to 2026.
Commenting on the results in a statement on Monday, February 2, the Group Chief Executive, Oando, Wale Tinubu, said, 2025 was a year of relentless execution as the company successfully transitioned from the integration of the NAOC Joint Venture into operational delivery.
“Over the year under review, we reinforced asset integrity, strengthened security across our operating areas and materially improved uptime, delivering a 32% year-on-year increase in total production.
“With operational control firmly embedded and the foundations for growth clearly established, our focus is on the diligent execution of our development programme to accelerate production growth, strengthen cash generation and enhance long-term value creation.
“As we enter 2026, we will continue to allocate capital prudently, deepen operational resilience and build on the momentum achieved,” his statement read in part.
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X
