MORGANABLE BUSINESS / COMPANIES
Oando PLC has reported revenue of ₦2.78 trillion for the first nine months of 2026, while average daily production rose by 14 per cent.
Akure —
Oando PLC has reported revenue of ₦2.78 trillion for the first nine months of 2026, while average daily production rose by 14 per cent.
Oando released the unaudited results on October 30. Revenue increased by 9 per cent from ₦2.54 trillion recorded in the same period last year.
The company attributed the increase to higher crude oil liftings, stronger gas and natural gas liquids sales, and improved realised prices.
Average production reached 42,985 barrels of oil equivalent per day, compared with 37,614 barrels a day in the first nine months of 2025.
However, stronger revenue did not lead to higher profit after tax. Oando recorded ₦106.45 billion in after-tax profit, down from ₦201.31 billion a year earlier. This represents a decline of about 47 per cent.
The company also reported a loss before tax of ₦74.65 billion, compared with a profit of ₦19.46 billion in the corresponding period of 2025.
Net finance costs reached ₦235.23 billion. An income tax credit of ₦181.10 billion helped Oando report a profit after tax despite the pre-tax loss.
Oando’s operating performance improved sharply. It recorded an operating profit of ₦159.7 billion, compared with an operating loss of ₦109.7 billion in the first nine months of 2025.
Gross profit climbed to about ₦174.5 billion from ₦29.8 billion. The company linked the improvement to higher production, stronger sales volumes and better realised prices.
Production growth came from crude oil, gas and natural gas liquids. Crude oil output increased by 12 per cent to 12,193 barrels per day.
Gas production rose by 13 per cent to 28,689 barrels of oil equivalent per day. Natural gas liquids production increased by 53 per cent to 2,103 barrels per day.
Sales volumes also improved. Crude oil liftings rose by 43 per cent to 3.97 million barrels, while natural gas sales increased by 5 per cent to 34.01 billion standard cubic feet.
Natural gas liquids sales climbed by 90 per cent to 0.57 million barrels. Overall, exploration and production sales volumes grew by 21 per cent to 10.21 million barrels of oil equivalent.
Oando also reported better operational reliability and cost control. Facility uptime increased to 96.1 per cent from 85 per cent a year earlier.
Production operating costs fell by 22 per cent to $15.39 per barrel of oil equivalent, compared with $19.67.
The group spent ₦110.7 billion on capital expenditure during the period, mainly on drilling across Oil Mining Leases 60 to 63.
It generated ₦285 billion in cash from operations, compared with cash used of ₦339.2 billion in the same period of 2025. Closing cash stood at ₦175.9 billion.
Total borrowings fell to ₦2.16 trillion, which was 22 per cent below the peak recorded at the end of 2024. Oando also said it had restructured its corporate facility and medium-term loan.
The company’s seven-well development programme is central to its production plans. Oando said it had completed and brought the Idu 6ST and Idu 15 wells on stream.
It also completed workovers at Samabri 4T and Samabri 7T. Drilling continued at Idu T and Samabri A50, while it scheduled the final well, Ogbainbiri, to begin in December.
When completed, the programme is expected to add about 16,000 to 20,000 barrels of oil equivalent per day in gross production. This is a target, not current output.
Oando said the new wells should help offset natural declines from existing fields. The company also aims to reach production of about 100,000 barrels of oil equivalent per day within four to five years.
For 2026, Oando narrowed its full-year production guidance to between 40,000 and 45,000 barrels of oil equivalent per day. It expects capital expenditure of $90 million to $100 million, focused on short-cycle upstream projects.
It also revised its traded crude oil volume guidance to between 22 million and 26 million barrels after a change to one marketing programme.
Beyond oil and gas, Oando reported progress in its electric mobility activities in Lagos.
Its electric bus service, run through a partnership with the Lagos Metropolitan Area Transport Authority, recorded more than 212,000 passenger journeys in the first nine months of the year.
Average capacity use stood at 73 per cent. Eleven more buses arrived, taking the fleet to 13.
The expanded fleet is expected to enter service in the fourth quarter of 2026. Oando described the buses as part of its wider clean energy activities.
However, oil, gas and trading remain central to its financial performance and account for major parts of its business.
Group Chief Executive Wale Tinubu said the results reflected better efficiency, reliability and production across the company’s upstream portfolio.
He said management would focus on completing the drilling programme, maintaining reliable operations and strengthening shareholders’ funds through a planned equity raise.
Oando expects these steps to reduce debt pressure and support future growth.
Overall, the nine-month results show a recovery in production and operating performance. Revenue rose, output increased and operating costs declined.
At the same time, lower after-tax profit and the pre-tax loss underline the impact of financing costs.
The next test will be whether higher production, careful spending and planned capital measures can improve earnings and strengthen Oando’s financial position.
Investors will watch how the company manages its financing costs in the final quarter.
Although stronger production can support revenue, sustained growth will depend on operations, timely project delivery and disciplined borrowing.
These factors will shape Oando’s ability to convert operational gains into stronger financial returns.
