Oando PLC (NGX: OANDO) has reported a slight increase in revenue and nearly doubled its profit for the first quarter of 2025 bolstered by a substantial income tax credit of ₦165.62 billion, compared to a tax expense of ₦11 billion in the previous year.
Oando recorded a 1.87% growth in consolidated revenue to ₦932.57 billion in Q1 2025, from ₦915.42 billion in Q1 2024. Despite the slight increase in revenue gross profit surged by 172% to ₦85.43 billion, up from ₦31.41 billion in the same period last year.
Oando earned majority of its revenue from trading which contributed N805.8 billion. Crude oil contributed N98 billion of the total revenue, while natural gas brought in N24 billion. N430 million was earned from natural gas liquids.
Oando’s administrative expenses declined by 46% to ₦86.15 billion in Q1 2025 from ₦158.90 billion in Q1 2024.
The company’s net finance income rose to ₦67.78 billion. This is a significant turnaround from the ₦46.86 billion net finance cost incurred in Q1 2024.
Despite the reduction in cost of sales and administrative expenses compared to the prvious year, Oando reported a N52.56 billion loss before tax compared to N70 billion profit before tax recorded in the previous year.
This is mainly due to other operating loss amounting to N301.9 billion in Q1 2025, a negative swing of N549.96 billion from the N248.1 billion other operating income reported in Q1 2024.
The profit after tax (PAT) surged by 90.5% to ₦113.06 billion in Q1 2025 from ₦59.35 billion in Q1 2024. The profit after tax is lower than its tax credit of ₦165.62 billion, signifying that Oando would have reported a loss if the the tax credit is voided.
Total assets rose to ₦6.83 trillion from ₦6.43 trillion as at December 2024—an increase of ₦400 billion or 6.2%. Comprising of N5.6 trillion non-current assets and N1.23 trillion current assets. This growth reflects a strengthened position in non-current investments and receivables.
Major Components of Assets
- Property, Plant and Equipment (PPE): ₦3.22 trillion
- Intangible Assets: ₦1.03 trillion.
- Non-Current Receivables: ₦743.97 billion
- Trade & Other Receivables + Contract Assets: ₦694.89 billion
- Finance Lease Receivables (Non-current): ₦423.74 billion
- Cash & Cash Equivalents: ₦303.90 billion
- Deferred Tax Assets: ₦96.40 billion
- Inventories: ₦56.21 billion
However, total liabilities also rose to ₦7.07 trillion, up from ₦6.80 trillion, largely due to increased borrowings. The liabilities comprised of N2.65 trillion non-current liabilities and N4.42 trillion current libilities.
Major Components of Liabilities
- Trade & Other Payables: ₦2.64 trillion
- Long-term Borrowings: ₦1.69 trillion
- Short-term Borrowings: ₦1.35 trillion
- Decommissioning Provisions: ₦730.76 billion
- Lease Liabilities (Non-current): ₦576.44 million
- Income Tax Liabilities: ₦389.06 billion
- Other Long-Term Payables: ₦144.45 billion
Despite a notable quarterly profit, the company’s equity remains negative at ₦240.12 billion, though this marks an improvement from ₦360.98 billion in the prior period.
Oando reported a net cash outflow of ₦176.98 billion from operating activities, compared to a positive inflow of ₦379.29 billion in Q1 2024. Investing activities also consumed ₦38.99 billion, primarily due to capital expenditure. However, the company generated ₦327.15 billion in financing activities, mainly through new borrowings. As a result, cash and cash equivalents rose by ₦111.18 billion, ensuring short-term liquidity despite operational cash strain.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
