Stock Market Performance: A Tale of Two Stories
Seplat Energy’s share price soared 10% in October 2025, closing at N5,917.20, and has since remained flat in November, signaling investor confidence as the market continues to digest the company’s strong financial results. Meanwhile, Oando experienced a modest 4.4% increase in October 2025, but after releasing its Q3 2025 results on October 30, the company’s stock plummeted by 16.75% in November, pushing its year-to-date loss to 39.39%. The contrasting performance of the two companies reflects the market’s divergent view of their financial health and growth prospects.
Seplat Energy’s Impressive Growth vs. Oando’s Reliance on One-Off Gains
Seplat Energy, led by Roger Thompson Brown, posted a remarkable post-tax profit of N146.6 billion for the first nine months of 2025, more than double the N52.8 billion it made in the same period of 2024. The company’s strong production growth, particularly from its key offshore operations and its landmark acquisition of Mobil Producing Nigeria Unlimited (MPNU), has positioned it as one of Nigeria’s largest independent oil producers. Seplat’s gas operations, including the Oben and Sapele plants, are central to its domestic power and industry supply, reinforcing its position as a leading gas supplier in Nigeria.
In contrast, Oando, headed by Adewale Tinubu, reported a 59% increase in production for the first nine months of 2025, reaching 38,121 barrels of oil equivalent per day (boepd). However, much of its profit was driven by one-off financial gains, such as interest income and impairment reversals, rather than sustainable operational performance. As a result, Oando’s financials have remained inconsistent, with operating losses and challenges like pipeline sabotage and high leverage overshadowing its recovery.
Seplat’s Strong Operational Performance vs. Oando’s Volatility
In terms of production, Seplat has clearly outperformed Oando. The company’s average output for the first nine months of 2025 was 135,636 boepd, a significant increase from 52,393 boepd in the same period of 2024. Seplat’s robust operational performance, particularly in offshore fields like OMLs 4, 38, 41, 40, 53, and 55, has enabled it to maintain consistent growth, with gas volumes from the Oben and Sapele plants providing a steady revenue stream.
Oando, on the other hand, saw production rise to 38,121 boepd, up 59% year-on-year. However, this growth came from a smaller base, and Oando’s performance has been more volatile, heavily impacted by external factors like operational shutdowns and pipeline sabotage.
Revenue, Cost Management, and Profitability: Seplat Leads the Way
Seplat’s revenue growth has been robust, rising from N294 billion in 2021 to N1.65 trillion in 2024, with a compound annual growth rate (CAGR) of approximately 78%. For 9M 2025, Seplat’s revenue hit N3.36 trillion, driven by its strong production performance and the addition of MPNU’s offshore assets. The company’s revenue mix—80% from exports and 20% from domestic gas—provides both scale and resilience.
Oando’s revenue also grew significantly, from N805 billion in 2021 to N4.09 trillion in 2024, but this was largely driven by crude trading rather than production. In 9M 2025, Oando’s revenue fell to N2.54 trillion, reflecting the volatility tied to its reliance on trading volumes, with oil prices normalizing during the period.
Seplat also outshone Oando in terms of profitability. Seplat’s gross profit for 9M 2025 rose to N1.36 trillion, with a healthy gross margin of 40%. Operating profit stood at N1.1 trillion, reflecting strong cost management even amid expansion. In contrast, Oando’s gross profit for 9M 2025 was only N113 billion, with a slim gross margin of 4%. The company posted an operating loss of N109.7 billion after a fair-value loss on assets.
Balance Sheet Strength: Seplat’s Financial Resilience
Seplat’s balance sheet is far stronger than Oando’s, with assets totaling N6.18 trillion, equity of N1.84 trillion, and borrowings of N1.41 trillion, yielding a healthy debt-to-equity ratio of 0.77x. The company’s strong cash flow, exceeding N1.56 trillion in 9M 2025, allows it to maintain financial flexibility without needing to raise new equity.
Oando, however, is struggling with over-leverage and liquidity issues. The company’s equity is negative, at N–168 billion, and its borrowings have ballooned to N2.47 trillion, leaving it vulnerable to financial strain. Oando will likely need to raise equity or sell assets to rebalance its finances.
Investor Returns: Seplat’s Dividend Policy Sets It Apart
Seplat has consistently rewarded its investors, paying dividends quarterly and recently paying a total of 167 US cents per share (about N152 billion) for the 2025 financial year—making it Nigeria’s highest dividend-paying company. In contrast, Oando has not paid a dividend in nearly a decade due to its high debt levels and inconsistent operating profits.
Market Valuation: Seplat’s Premium Valuation Reflects Strong Fundamentals
Seplat’s market capitalization stands at N3.55 trillion, with shares trading at N5,917.20, up 3.8% year-to-date. The company’s price-to-earnings (P/E) ratio of 11.66 indicates that investors view its profits as sustainable and worth paying a premium for.
Oando, on the other hand, has a market capitalization of just N497 billion, and its shares have fallen nearly 40% year-to-date. The company’s low P/E ratio of 1.55 and negative net assets signal weak investor sentiment and fundamental strain.
Bottom Line: Seplat Energy Stands Out as the Clear Winner
Across production growth, revenue quality, profitability, debt management, and investor returns, Seplat Energy has clearly outperformed Oando in 2025. The company’s strong operational performance, robust balance sheet, and consistent dividend policy make it a safer and more attractive investment option. Oando, despite its efforts to recover, remains hindered by volatility, high debt levels, and reliance on one-off financial gains.
In conclusion, Seplat Energy’s strong fundamentals and consistent performance make it the standout player in the Nigerian oil and gas sector.