Oando Plc has reported a pre-tax profit of N135.76 billion for the fiscal year 2025, marking the strongest annual result in the Nigerian energy group’s history.
The headline figure, however, masks a significant balance sheet strain, with the company disclosing a working capital deficit of N3.76 trillion.
The divergence between top-line profitability and liquidity position highlights the operational challenges facing integrated energy firms in Nigeria amid ongoing macroeconomic volatility.
The profit surge follows the first full year of production from assets acquired in recent strategic moves, which have bolstered the group’s upstream and downstream operations.
Despite the record earnings, the massive working capital gap suggests persistent pressure on cash flow management, likely driven by inventory buildup, receivables delays, or debt servicing obligations common in the sector.
Investors will need to scrutinize the quality of earnings and the company’s ability to bridge the liquidity shortfall without diluting equity or taking on additional high-cost debt.