Nigeria's Oando Posts 68.6 Billion Naira H1 Profit on 20% Revenue Growth

August 5, 2026
By Mintesinot Nigussie

Nigerian energy company Oando Plc reported a first-half profit after tax of 68.6 billion naira, up 8 percent from a year earlier, as higher oil and gas production and lower operating costs lifted earnings despite a challenging operating environment. Revenue increased 20 percent to 2.1 trillion naira in the six months ended June 30, while gross profit surged to 101 billion naira from 23.4 billion naira a year earlier, according to the company's unaudited financial results released on Tuesday.

The stronger performance was driven by higher production from the company's upstream business and lower transport, logistics, service and information technology costs. Average production rose 16 percent to 42,789 barrels of oil equivalent per day (boepd) from 36,836 boepd in the corresponding period last year. Facility uptime improved to 92 percent, compared with 85 percent a year earlier.

Crude oil production increased 19 percent to 12,358 barrels per day, while gas production rose 14 percent to 28,497 boepd. Natural gas liquids output climbed 16 percent to 1,935 boepd. The company attributed the production growth to new wells brought on stream, the restoration of 12 previously shut-in wells and improved operational performance across Oil Mining Leases (OMLs) 60–63. Operating cash flow reached 179.5 billion naira, strengthening liquidity as Oando continued integrating the upstream assets acquired through its purchase of Nigerian Agip Oil Company from Italian energy group Eni.

The group's trading division also recorded growth, with crude oil trading volumes increasing 2.1 percent to 13.15 million barrels, supported by crude marketing programmes and increased sourcing from marginal field producers. Group Chief Executive Wale Tinubu said operational improvements had reduced production operating costs by 18 percent to 16.83 US dollars per barrel of oil equivalent, while supporting higher production and stronger financial performance. Oando has completed two development wells this year and is drilling additional wells as part of a seven-well programme across OMLs 60–63. The company also plans about 100 rig-less well intervention activities during the year to sustain production and offset natural field decline.

The company reaffirmed its full-year production guidance of 40,000 to 50,000 boepd and said it remains on track to pursue a 1.5 billion US dollar multi-instrument fundraising programme and balance sheet restructuring to support future investment. The results come as Nigerian independent oil producers continue to benefit from expanded upstream portfolios. During the first half, Seplat Energy reported a 4 percent increase in average production to 139,000 boepd, while Aradel Holdings reported a more than fivefold increase in output following the expansion of its asset base.

Source: FSX Business News