Key points
- Oando reported a 20 per cent increase in half-year revenue to N2.1 trillion, driven by higher production and improved operational efficiency.
- Profit after tax rose eight per cent to N68.6 billion, while gross profit jumped 331 per cent to N101 billion.
- The company remains on track to achieve average production of about 50,000 barrels of oil equivalent per day (boepd) in 2026.
Main story
Oando Plc has reported a 20 per cent increase in revenue to N2.1 trillion for the half-year ended June 30, 2026, supported by higher crude oil production, improved operational efficiency and lower production costs.
According to the company’s unaudited financial results released on Tuesday in Lagos, profit after tax increased by eight per cent to N68.6 billion, while gross profit surged by 331 per cent to N101 billion during the review period.
Average daily production rose by 16 per cent to 42,789 barrels of oil equivalent per day (boepd), compared with 36,836 boepd recorded in the corresponding period of 2025.
The increase was driven by a 19 per cent rise in crude oil production, a 14 per cent increase in gas output and a 16 per cent growth in natural gas liquids production.
Oando attributed the improved performance to the successful drilling of new wells, the restoration of 12 previously shut-in wells and improved facility uptime across Oil Mining Leases (OMLs) 60 to 63.
The company said facility uptime improved to 92 per cent from 85 per cent a year earlier, while production operating costs declined by 18 per cent to $16.83 per barrel of oil equivalent.
Its trading business also recorded a 2.1 per cent increase in volumes to 13.15 million barrels, supported by expanded crude oil marketing, increased offtake programmes and additional sourcing from marginal field producers.
Group Chief Executive Officer, Mr Wale Tinubu, said the results reflected the successful integration of the company’s expanded upstream portfolio following one of Africa’s largest upstream acquisitions.
He said the company strengthened asset integrity, improved facility reliability and accelerated its drilling programme, resulting in higher production and stronger financial performance.
Tinubu added that Oando remains on track to complete its seven-well drilling programme across OMLs 60 to 63 and achieve average production of about 50,000 boepd in 2026.
He also disclosed plans to implement a balance sheet restructuring and a $1.5 billion multi-instrument capital-raising programme to improve liquidity and support future growth.
The issues
Nigeria’s upstream oil sector is witnessing renewed investment and production growth as operators focus on improving operational efficiency, restoring idle wells and increasing output. Stronger financial performance by major operators could support higher domestic production and attract additional investment into the sector.
What’s being said
“The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation.” — Wale Tinubu, Group Chief Executive Officer, Oando Plc.
“We remain on track to complete our seven-well drilling programme across OMLs 60 to 63 and achieve average production of about 50,000 boepd in 2026.” — Wale Tinubu.
What’s next
Oando plans to complete its ongoing drilling programme, execute well intervention projects and advance its $1.5 billion capital-raising initiative while pursuing its medium-term production target of about 100,000 boepd.
Bottom line
Higher production, improved operational efficiency and lower costs lifted Oando’s first-half earnings, positioning the company to pursue higher output and strengthen its financial position through new investment and capital raising.
