Oando Plc returned to operating profitability in the nine months ended September 2026, supported by higher crude oil production, improved facility uptime and lower operating costs, as revenue rose 9 percent to N2.78 trillion.
The indigenous energy company recorded an operating profit of N159.7 billion, compared with an operating loss of N109.7 billion in the corresponding period of 2025, according to its unaudited financial results for the nine months ended September 2026.
Average daily production increased 14 percent to 42,985 barrels of oil equivalent per day (boepd), from 37,614 boepd a year earlier, reflecting higher output across crude oil, natural gas and natural gas liquids (NGLs).
Gross profit rose 483 percent to N174.5 billion from N29.8 billion, while facility uptime improved to 96.1 percent from 85 percent, indicating better reliability across its upstream operations.
Wale Tinubu, group chief executive of Oando, said the improved performance reflected investments in its upstream assets and operational efficiency.
“Our performance in the first nine months of 2026 demonstrates how diligent execution under our operatorship, supported by our renewed investment drive, is delivering greater efficiency, improved reliability, lower unit costs and ultimately higher production across our expanded upstream portfolio,” he said.
Crude oil production increased 12 percent to 12,193 barrels per day, while gas production rose 13 percent to 28,689 boepd. NGL production grew 53 percent to 2,103 barrels per day.
The company’s total exploration and production sales volumes increased 21 percent to 10.21 million barrels of oil equivalent. Crude oil liftings rose 43 percent to 3.97 million barrels, while natural gas sales increased 5 percent to 34.01 billion standard cubic feet. NGL sales climbed 90 percent to 570,000 barrels.
The improved production performance also helped lower production operating costs by 22 percent to $15.39 per barrel of oil equivalent, from $19.67 in the corresponding period of 2025.
Despite the operating recovery, Oando’s earnings remained under pressure from financing costs. The company recorded a loss before tax of N74.7 billion, compared with a profit before tax of N19.5 billion a year earlier, as net finance costs reached N235.2 billion.
Profit after tax fell 47 percent to N106.5 billion from N201.3 billion, supported by an income tax credit of N181.1 billion.
Cash generated from operations stood at N285 billion, compared with N339.2 billion used in the corresponding period of 2025. The company invested N110.7 billion in capital expenditure, mainly in drilling activities across its OMLs 60–63 assets.
Total borrowings declined to N2.16 trillion, representing a 20 percent reduction from the end of 2025, while closing cash increased to N175.9 billion from N143.8 billion a year earlier.
Oando is also advancing a seven-well drilling programme across its operated assets. The company said it had completed drilling and brought Idu 6ST and Idu 15 on stream, while workovers at Samabri 4T and Samabri 7T had been completed.
Drilling is ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December. The programme is expected to add between 16,000 and 20,000 boepd in gross production when completed.
The company has narrowed its 2026 full-year production guidance to between 40,000 and 45,000 boepd and expects capital expenditure of $90 million to $100 million, focused on upstream development activities.
In its electric mobility business, Oando said its partnership with the Lagos Metropolitan Area Transport Authority recorded more than 212,000 passenger journeys in the first nine months of the year. The company also received 11 additional electric buses, bringing its fleet to 13, with the expanded fleet expected to enter service in the fourth quarter.
Tinubu said the company would focus on completing its drilling programme, sustaining production and strengthening its balance sheet through a planned equity raise.
Ayomide Odunlami is a Tax Reporter at BusinessDay, covering Nigeria’s tax reforms, compliance trends, and government revenue strategies. She reports on how evolving tax policies affect businesses, investors, and the broader economy, providing clarity on complex regulatory issues through data-driven journalism.
