Oando Plc has reported a 9 per cent increase in revenue to ₦2.78 trillion for the nine months ended September 30, 2026, supported by higher crude oil liftings, increased natural gas and Natural Gas Liquids (NGL) sales, and improved average realised prices.
The indigenous energy company disclosed the performance in its unaudited financial results for the period, highlighting significant improvements in production, profitability, operational efficiency and cash generation.
One of the major highlights was the Group’s return to operating profitability. Oando recorded an operating profit of ₦159.7 billion, compared with an operating loss of ₦109.7 billion in the corresponding period of 2025.
Gross profit also increased substantially by 483 per cent to ₦174.5 billion, up from ₦29.8 billion recorded in the same period last year.
The improvement was attributed to stronger production performance, increased operational efficiency and improved facility reliability.
Average daily production increased by 14 per cent year-on-year to 42,985 barrels of oil equivalent per day (boepd), compared with 37,614 boepd in the corresponding period of 2025.
Speaking on the results, Group Chief Executive of Oando Plc, Wale Tinubu, said the performance reflected the company’s commitment to operational execution, investment and efficiency across its expanded upstream portfolio.
He noted that improved production reliability, lower operating costs and increased output had contributed significantly to the company’s performance.
Tinubu added that production operating costs declined by 22 per cent to US$15.39 per barrel of oil equivalent, while facility uptime improved to 96.1 per cent from 85 per cent.
The company also recorded zero fatalities and zero lost-time injuries across approximately 14.9 million working hours during the reporting period.
Production and Sales Volumes Increase
The company’s production growth was recorded across crude oil, natural gas and NGLs.
Crude oil production increased by 12 per cent to 12,193 barrels per day, while gas production rose by 13 per cent to 28,689 boepd. NGL production recorded the strongest growth, climbing 53 per cent to 2,103 barrels per day.
Sales volumes also improved during the period. Crude oil liftings increased by 43 per cent to 3.97 million barrels, while natural gas sales rose by 5 per cent to 34.01 billion standard cubic feet.
NGL sales surged by 90 per cent to 0.57 million barrels, bringing total exploration and production sales volumes to 10.21 million barrels of oil equivalent, representing a 21 per cent increase from the 8.45 million barrels of oil equivalent recorded in 9M 2025.
These improvements reflect the contribution of increased production, better facility performance and the company’s ongoing investment in its upstream operations.
Borrowings Decline as Cash Generation Improves
Oando also reported progress in its financial management, with total borrowings declining to ₦2.16 trillion, approximately 22 per cent below the peak recorded at the end of 2024.
Cash generated from operations reached ₦285 billion, compared with ₦339 billion used in the corresponding period of 2025.
The company invested ₦110.7 billion in capital expenditure during the nine-month period, with a significant portion directed towards drilling activities across Oil Mining Leases (OMLs) 60–63.
However, despite the improvement in operating performance, the company recorded a profit after tax of ₦106.5 billion, down from ₦201.3 billion in the corresponding period of 2025. Its results also reflected substantial finance costs associated with acquisition-related borrowing.
This highlights the importance of the company’s ongoing capital management programme as it works to reduce financing costs and strengthen its balance sheet.
Seven-Well Drilling Programme Targets Higher Production
As part of its expansion strategy, Oando continued implementing its seven-well drilling programme for 2026 across its operated assets.
The company confirmed that Idu 6ST and Idu 15 had been completed and brought into production, while workovers at Samabri 4T and Samabri 7T had also been completed.
Drilling activities were ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to commence drilling in December 2026.
Upon completion, the drilling campaign is expected to contribute approximately 16,000 to 20,000 boepd in gross production.
The additional output is expected to support existing production levels, offset natural declines across the company’s operated assets and strengthen its ambition to achieve approximately 100,000 boepd within the next four to five years.
Tinubu said the company remained focused on completing its development programme, sustaining operational reliability and strengthening its financial position.
Oando Expands Electric Mobility Operations in Lagos
Beyond its oil and gas business, Oando continued expanding its clean energy initiatives through its electric mobility partnership with the Lagos Metropolitan Area Transport Authority (LAMATA).
The company’s electric buses recorded more than 212,000 passenger journeys during the first nine months of 2026, with average capacity utilisation of 73 per cent.
An additional 11 electric buses, representing the first batch of a planned 50 buses, arrived in Lagos during the period, bringing the fleet to 13.
The expanded fleet is expected to enter service in the fourth quarter of 2026, with LAMATA operating the buses on behalf of the Lagos State Government.
The initiative forms part of Oando’s broader efforts to diversify its energy operations and support cleaner transportation solutions.
Company Narrows Full-Year Production Guidance
Looking ahead, Oando has narrowed its full-year 2026 production guidance to between 40,000 and 45,000 boepd.
The company also expects capital expenditure of approximately US$90 million to US$100 million for the full year, focusing on high-impact and short-cycle upstream activities.
Its priorities for the remaining months include completing the seven-well drilling programme, maintaining production efficiency, reducing acquisition-related debt and strengthening shareholders’ funds through a planned equity raise.
Commenting on the company’s outlook, Tinubu said the initiatives were designed to reduce leverage, improve its capacity to finance future growth and support potential shareholder distributions.
He expressed confidence in the opportunities available across the company’s energy assets, emphasising its commitment to maximising its resource base and delivering sustainable value to shareholders.
Overall, Oando’s nine-month results demonstrate significant improvements in revenue, gross profit, production and operating efficiency. However, the decline in profit after tax and the continued burden of acquisition-related finance costs remain important financial considerations as the company enters the final quarter of 2026.
With its drilling programme, debt-reduction initiatives and clean energy investments underway, the company is positioning itself for further growth in Nigeria’s oil and gas industry.
