OANDO Plc reported a N49.74 billion loss in its second-quarter (Q2) financial performance, compared to a N3.30 billion profit in the same quarter in 2024, resulting in a return to negative growth during the review period.
The disclosure is contained in Oando’s half-year financial statement released on Thursday, July 31.
An analysis of the report revealed the indigenous oil firm posted negative performances across its profit lines.
It reported a gross loss of N26.22 billion in the second quarter of 2025, compared to a gross profit of N50.89 billion in the same quarter of 2024.
Oando reported an operating loss of N38.37 billion from an operating profit of N4.73 billion. Its net finance cost widened to a N54.81 billion loss from a N29.56 billion loss.
Loss before tax also widened to N93.18 billion from N24.83 billion. Its loss after tax, which represents loss for the period, rose to N49.74 billion from a profit after tax of N3.30 billion.
Not only did the Group – Oando Trading, Oando Energy Resources, and Oando Clean Energy – report losses across all its profit lines, but it also posted a negative financial position.
A negative financial position is a situation where total liabilities exceed total assets, resulting in negative equity.
According to the unaudited financial statements, Oando’s total assets stood at N6.76 trillion and total liabilities at N7.07 trillion as at June 30, 2025, representing a negative equity (indebtedness) of N305.88 billion.
A report by The ICIR in January this year spotlighted that Oando had increasingly sunk deeper into debt in the past five years, raising concerns over its growing liabilities.
The company has, since 2020, steeped into debt and has been unable to crawl out of the obligation as its total liabilities continue to exceed its total assets, thereby widening its indebtedness.
The ICIR can report that assets are resources that a company owns, while liabilities are obligations it has. The difference is its equity, and a negative equity means that a company’s liabilities are greater than its assets.
It is a situation where a company has more debt than it can cover with its assets, thereby wiping out shareholders’ funds, analysts say.
Oando’s independent auditor, BDO Professional Services Chartered Accountants, had in September 2023 expressed concern over the company’s indebtedness, The ICIR reported.
“As stated in the notes, these conditions, together with other matters, indicate the existence of a material uncertainty that may cast significant doubt on the company’s and the group’s ability to continue as a going concern and, therefore, may be unable to realise its assets and settle its liabilities in the ordinary course of business,” the independent auditor, specifically stated.