By Ali Elias
Oando Plc has returned to operating profitability, recording an operating profit of ₦159.7 billion for the nine months ended September 30, 2026, compared with an operating loss of ₦109.7 billion in the corresponding period of 2025.
The indigenous energy company disclosed this in its unaudited nine-month results released on October 30, which showed a nine per cent increase in revenue to ₦2.78 trillion from ₦2.54 trillion a year earlier.
Gross profit rose sharply by 483 per cent to ₦174.5 billion, against ₦29.8 billion in 2025, reflecting higher production, improved sales volumes and stronger operational efficiency.
Average daily production increased by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), from 37,614 boepd in the corresponding period of 2025.
Crude oil output rose 12 per cent to 12,193 barrels per day, while gas production increased 13 per cent to 28,689 boepd. Natural gas liquids (NGL) production recorded the strongest growth, rising 53 per cent to 2,103 barrels per day.
The company attributed the improved performance to higher crude oil liftings, increased gas and NGL sales, improved realised prices and better production reliability across its upstream assets.
Commenting on the results, Group Chief Executive, Wale Tinubu, said the performance reflected improved operational efficiency and the impact of renewed investment across the company’s expanded upstream portfolio.
“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.
Facility uptime improved to 96.1 per cent from 85 per cent in the corresponding period of 2025, while production operating costs declined by 22 per cent to $15.39 per barrel of oil equivalent, from $19.67.
Oando also reported zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked during the period.
Crude oil liftings increased by 43 per cent to 3.97 million barrels, while natural gas sales rose five per cent to 34.01 billion standard cubic feet. NGL sales recorded a 90 per cent increase to 570,000 barrels, taking total exploration and production sales volumes 21 per cent higher to 10.21 million barrels of oil equivalent.
The company said the completion of the Ob/Ob–Kwale reverse-flow project also increased gas supply to the joint venture-owned Okpai Independent Power Plant by 80 per cent, supporting higher electricity generation for the national grid.
Despite the improvement in operating performance, Oando’s profit after tax declined to ₦106.5 billion from ₦201.3 billion in the corresponding period of 2025.
The financial statements showed that finance costs of ₦244.2 billion weighed on earnings, leaving the group with a loss before tax of ₦74.6 billion. An income tax credit of ₦181.1 billion helped produce the reported after-tax profit.
Cash generated from operations stood at ₦285 billion, compared with ₦339.2 billion used in the corresponding period of 2025.
Total borrowings declined to ₦2.16 trillion, representing a 22 per cent reduction from the peak recorded at the end of 2024. Closing cash, however, stood at ₦175.9 billion.
Capital expenditure increased to ₦110.7 billion from ₦85.1 billion, with most of the investment directed towards drilling activities across OMLs 60–63.
On its development programme, Oando said two wells, Idu 6ST and Idu 15, had been completed and brought on stream, while workovers on Samabri 4T and Samabri 7T had also been completed.
Drilling was ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December.
The seven-well programme is expected to add between 16,000 and 20,000 boepd in gross production when completed, supporting the company’s ambition to achieve approximately 100,000 boepd within the next four to five years.
Beyond its upstream operations, Oando reported progress in electric mobility through its partnership with the Lagos Metropolitan Area Transport Authority (LAMATA).
The company said electric buses deployed under the partnership recorded more than 212,000 passenger journeys in the first nine months of 2026, with average capacity utilisation of 73 per cent.
An additional 11 electric buses, the first batch of a planned 50, have arrived in Lagos, bringing the fleet to 13. The expanded fleet is expected to enter service in the fourth quarter, with LAMATA operating the buses on behalf of the Lagos State Government.
Looking ahead, Oando narrowed its full-year production guidance to between 40,000 and 45,000 boepd and projected capital expenditure of $90 million to $100 million for 2026, focused on short-cycle upstream activities.
Tinubu said the company’s priorities for the remaining months of the year included completing its drilling programme, maintaining operational reliability and strengthening shareholders’ funds through a planned equity raise.
The proposed capital raising, he said, is intended to reduce leverage, improve the company’s capacity to finance growth and support future shareholder distributions.
The latest results point to a significant improvement in Oando’s operating performance, although its substantial finance costs and the decline in after-tax profit underline the continuing importance of debt reduction and balance-sheet strengthening as the company pursues its production expansion.