Seplat Energy and Oando Plc, two of Nigeria’s leading oil and gas firms, released their unaudited results for the nine months ending September 30, 2025. While Seplat posted a post-tax profit of N146.6 billion—more than double its N52.8 billion in the same period last year—Oando reported a N210 billion profit largely driven by one-off financial gains. The market reflected these performances: Seplat’s shares climbed 10% in October 2025 and have held steady, while Oando’s stock fell 16.75% in November following its Q3 results, pushing its year-to-date loss to 39.39%.
Seplat’s growth is backed by solid operational execution, anchored by core assets in the Seplat/NPDC joint venture OMLs 4, 38, and 41, as well as stakes in OMLs 40, 53, and 55. The landmark acquisition of Mobil Producing Nigeria Unlimited (MPNU) expanded Seplat’s offshore capacity, supporting an average production of 135,636 barrels of oil equivalent per day (boepd) in 2025. Oando, with average output of 38,121 boepd, increased production by 59% year-on-year but relies heavily on trading and non-recurring financial gains, exposing its profitability to volatility.
Seplat’s 9M 2025 revenue reached N3.36 trillion, with 94% derived from crude sales and gas providing steady domestic supply. The company achieved a gross margin of 40% and an operating margin of 33%, reflecting disciplined cost management amid expansion. Oando, despite generating N2.54 trillion in revenue, reported a gross margin of only 4% and an operating loss of N109.7 billion, highlighting its dependence on trading income and fair-value accounting adjustments.
Seplat maintains a healthy debt-to-equity ratio of 0.77×, assets of N6.18 trillion, and equity of N1.84 trillion, supported by strong cash flows of over N1.56 trillion in nine months. Its dividend policy has remained steady, paying shareholders a total of 167 US cents per share in 2025, making it Nigeria’s highest dividend-paying energy company this year. Oando, in contrast, has negative equity (N–168 billion) and has not paid dividends in nearly a decade due to over-leverage and thin operating profits.
Seplat’s market capitalization stands at N3.55 trillion, with shares trading at N5,917.20 and a P/E ratio of 11.66, signaling investor confidence in sustainable profits. Oando’s market cap is just N497 billion, with shares down nearly 40% YTD and a P/E of 1.55, reflecting weak fundamentals and high risk. Across production, revenue quality, profitability, balance sheet strength, and shareholder returns, Seplat Energy emerges as the clear winner, demonstrating superior execution in Nigeria’s oil and gas sector.
source: nairametrics