- Africa Oil reported $50.9mn in Q1 2025 net income, up from $3.5mn in Q1 2024, following its merger with Prime Oil & Gas.
- The company declared a second $25mn dividend and reduced its RBL facility by $210mn during and after the quarter.
- Africa Oil maintained its 2025 guidance with expected net production of 28,000–33,000 boepd and plans new exploration in Namibia and South Africa.
Africa Oil Corp posted strong first-quarter results for 2025, with net income rising to $50.9 million from $3.5 million a year earlier.
During the quarter, the company completed its merger with Prime Oil & Gas Cooperatief U.A., doubling its reserves and production capacity.
Africa Oil produced 33,400 barrels of oil equivalent per day (boepd) on a working interest basis and reported 37,700 boepd in entitlement production. The company sold five crude cargoes, totalling 5 million barrels, at an average price of $79.5 per barrel, above the Dated Brent average of $75.7.
Africa Oil generated $99.8 million in operating cash flow before working capital changes. It reduced its Reserves-Based Lending (RBL) facility by $130 million, bringing the balance down to $620 million. The company closed the quarter with $428.4 million in cash and recorded $191.6 million in net debt. It kept its net debt/EBITDAX ratio at a low 0.3x.
In April, the company paid a $25 million dividend to shareholders. The board approved a second $25 million payout, with payment scheduled for June 2025 and a record date of May 26.
After the quarter, Africa Oil repaid an additional $80 million on its RBL facility. It also started cancelling its $65 million undrawn corporate facility to streamline its capital structure.
The company reminded investors that non-Canadian shareholders must pay applicable dividend withholding taxes. Investors trading shares on the Toronto Stock Exchange will receive dividends in Canadian dollars, and those holding shares on Nasdaq Stockholm will receive payments in Swedish Krona through Euroclear.
Africa Oil reaffirmed its full-year 2025 guidance. The forecast assumes an average Brent price of $75 per barrel. The company expects net production to range between 28,000 and 33,000 boepd. It projected cash flow between $320 million and $370 million from operations. Based on oil price trends, EBITDAX should fall between $500 million and $600 million.
Africa Oil plans to launch a new exploration campaign in the second half of 2025. It will focus on prospects in Namibia and South Africa. The company continues to seek partners for its Equatorial Guinea development projects.
Executives expressed confidence in the company’s financial strength and long-term strategy. They highlighted the benefits of the Prime merger and emphasised their commitment to returning capital to shareholders.
Africa Oil continues to pursue new exploration opportunities while strengthening its balance sheet. With increased production, strong oil prices, and disciplined spending, the company aims to deliver sustained growth through 2025.
Investors will monitor progress on its upcoming drilling campaign and partnership efforts across sub-Saharan Africa.