Oando Plc reported a ₦159.7 billion operating profit in the nine months ended September 2026, reversing a ₦109.7 billion loss a year earlier, as higher oil and gas production and lower operating costs strengthened its financial performance.
Revenue increased by 9% to ₦2.78 trillion from ₦2.54 trillion, while adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) recovered to ₦181.8 billion from a negative ₦194.1 billion recorded a year earlier.
Average production rose 14% year-on-year to 42,985 barrels of oil equivalent per day (boepd), reflecting improved facility reliability, new well deliveries and higher output across its upstream portfolio.
Despite the improvement in operating performance, profit after tax declined to ₦106.5 billion from ₦201.3 billion in the corresponding period of 2025, largely reflecting ₦244.2 billion in finance costs associated with acquisition-related debt.
Production growth drives operational recovery
Oando’s production growth was largely driven by its 40% working interest in OMLs 60–63, which recorded average production of 40,017 boepd, representing a 16% increase year-on-year.
The company attributed the improvement to new wells at Idu, the restart of Samabri 4T and the return of the Oshie flow station.
Production operating expenses declined by 22% to $15.39 per barrel of oil equivalent (boe), compared with $19.67 per boe in the corresponding period of 2025.
Facility uptime also improved significantly to 96.1% from 85% a year earlier, reflecting better operational reliability.
The company recorded zero fatalities and zero lost-time injuries across 14.9 million work hours during the reporting period.
Oando’s natural gas liquids (NGL) delivery reached 9.5 thousand barrels per day on a gross basis, its highest level in five years.
Gas supply to the joint venture-owned Okpai Independent Power Plant also increased by 80% following the completion of the Ob/Ob–Kwale reverse flow project, supporting higher electricity generation for Nigeria’s national grid.
Seven-well drilling programme targets additional production
Oando said its seven-well drilling campaign across OMLs 60–63 was progressing according to schedule, with two wells already brought on stream and workovers completed.
The final well is expected to be spudded in December 2026.
The drilling programme is projected to add between 16,000 and 20,000 boepd of gross production when completed, potentially strengthening the company’s output capacity.
Capital expenditure increased to ₦110.7 billion during the nine-month period, with the bulk directed towards drilling activities across the OMLs 60–63 assets.
Cash generation improves as debt restructuring continues
Cash generated from operations stood at ₦285 billion, compared with ₦339.2 billion used in the corresponding period of 2025.
Closing cash increased to ₦175.9 billion, while total borrowings declined by 22% from their financial year 2024 peak to ₦2.16 trillion.
The company said its Corporate Facility and Medium-Term Loan had been restructured and remained in good standing.
However, the ₦244.2 billion finance cost highlights the continued impact of acquisition-related borrowing on its bottom line, despite the substantial recovery in operating profitability.
Commenting on the results, Wale Tinubu CON, Group Chief Executive of Oando, said the company’s operational performance reflected the benefits of improved execution and renewed investment across its 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.
“These operational gains supported revenue of ₦2.78 trillion, operating profit of ₦159.7 billion and cash generated from operations of ₦285.0 billion. We continued to invest in growth while strengthening the balance sheet…”
Tinubu said the company would focus on advancing its drilling programme, sustaining operational reliability and strengthening shareholders’ funds through its planned equity raise.
“For the remainder of 2026, our priorities are to progress the seven-well development programme, sustain operational reliability and strengthen shareholders’ funds through our impending equity raise. These initiatives are intended to reduce leverage, enhance our capacity to fund growth and support future shareholder distributions.”
Oando narrows 2026 production guidance
Looking ahead, Oando has narrowed its full-year 2026 production guidance to between 40,000 and 45,000 boepd.
The company is also advancing a rights issue, which is currently under review by the Securities and Exchange Commission (SEC), alongside a planned $1.5 billion issuance programme.
The proposed financing initiatives are intended to refinance acquisition-related debt, extend repayment maturities and reduce interest costs.
