Oando Plc has applied for regulatory approval to raise N221 billion through a rights issue as the indigenous energy company seeks to strengthen its capital base and support future growth plans.
A filing with the Nigerian Exchange (NGX) showed that the company plans to offer about 4.42 billion ordinary shares at N50 per share to existing shareholders. Under the proposed arrangement, shareholders will be entitled to one new share for every two shares held as of February 13, 2026.
The planned capital raise follows an improvement in the company’s financial performance in 2025. Oando reported a profit after tax of N241.3 billion, representing a 10 per cent increase from N220.1 billion recorded in 2024.
The company’s upstream operations recorded strong growth during the year, with average production rising by 32 per cent to 32,482 barrels of oil equivalent per day. Crude oil production increased by 36 per cent, while gas production rose by 24 per cent.
Oando attributed the growth to the full-year contribution of assets acquired through the Nigerian Agip Oil Company (NAOC) Joint Venture deal, improved operational efficiency and infrastructure upgrades across its assets.
Despite the increase in profit, revenue declined by 21 per cent to N3.21 trillion from N4.09 trillion in the previous year. The company said the drop reflected its decision to reduce lower-margin refined product trading and focus more on crude oil and gas transactions.
Group Chief Executive Officer, Wale Tinubu, said the company successfully moved from integrating the NAOC assets to driving operational performance, resulting in higher production levels and improved uptime.
He noted that Oando has commenced a development drilling programme with the completion of the Obiafu-44 gas-condensate well, the first phase of a planned 36-well campaign aimed at boosting future production.
Tinubu said the company remains focused on expanding output, strengthening cash generation and creating long-term value for shareholders.
The company also reported $17.7 million in cost savings through contract optimisation and operational efficiency initiatives, while increased investment in infrastructure and asset development positions it for future growth.
