Oando Plc reported a strong improvement in its first-half 2026 performance, with higher oil and gas production and better operating efficiency driving revenue and profit growth.
The indigenous energy company announced in its six-month financial report for the period ended June 30, 2026, that group revenue increased by 20 per cent to N2.1 trillion. Gross profit rose sharply by 331 per cent to N101 billion, while profit after tax stood at N68.6 billion.
The results reflected significant operational gains across the company’s upstream business. Oando said facility uptime improved to 92 per cent, compared with 85 per cent in 2025, helping average production rise by 16 per cent to 42,789 barrels of oil equivalent per day (boepd) from 36,836 boepd recorded in the corresponding period of 2025.
Crude oil production increased by 19 per cent to 12,358 barrels per day, gas production climbed 14 per cent to 28,497 boepd, while natural gas liquids (NGL) production rose 16 per cent to 1,935 boepd.
Oando’s share price gained 3.30 per cent on the Nigerian Exchange on Tuesday, outperforming the broader market where declining stocks outnumbered gainers.
The company attributed the stronger first-half performance to cost-saving measures, including lower transportation, logistics, service and ICT expenses, as well as the benefit of higher production on a largely fixed operating cost base.
Oando also said the results were supported by the successful drilling of new wells, the restoration of 12 previously shut-in wells, and sustained improvements in facility uptime across OMLs 60–63.
In its trading business, crude trading volumes rose by 2.1 per cent to 13.15 million barrels, driven by expanded crude marketing and offtake activities and increased sourcing from marginal field producers.
Group Chief Executive Wale Tinubu described the first-half results as an important turning point for the company.
He said Oando had spent the last two years integrating one of the largest upstream acquisitions in Africa and unlocking value from its expanded asset portfolio, adding that the latest results show the operational and financial benefits of that transformation are now becoming evident.
According to him, stronger asset integrity, improved facility reliability and enhanced security in operating areas helped raise facility uptime to 92 per cent and reduce production operating costs by 18 per cent to $16.83 per barrel of oil equivalent.
Tinubu disclosed that the company drilled and completed two land development wells during the period, with another land well currently being drilled and a second drilling rig mobilised to accelerate activities across its operated assets.
He added that extensive rig-less well intervention programmes were also carried out to restore production, maintain output levels and offset natural decline in mature fields.
The company said these activities contributed to the increase in average production to 42,789 boepd and helped generate N179.5 billion in operating cash flow, strengthening liquidity.
Looking ahead, Oando said it is pursuing an extensive drilling campaign across both operated and non-operated assets. The company plans to complete a seven-well drilling programme and carry out about 100 rig-less well intervention activities across its portfolio during 2026.
Tinubu said the immediate target is to deliver production of around 50,000 boepd in 2026, while the company’s medium-term ambition is to reach approximately 100,000 boepd through an identified inventory of 62 development wells supported by 55 planned well interventions.
He also said Oando intends to undertake a fundraising and balance-sheet restructuring programme to improve its capital structure, strengthen liquidity and support future growth.
The company reaffirmed its full-year production guidance of 40,000–50,000 boepd. Two wells have already been completed under the seven-well programme, while two additional wells are currently in progress.
Oando also revised the guidance for its trading division to 22–26 million barrels following adjustments to its crude marketing programme and said it continues to advance its rights issue, $1.5 billion multi-instrument issuance programme, and expansion of its clean energy initiatives.
