KEY POINTS
- Oando swung to a N127.8bn operating profit in H1 2026 from a N158.7bn operating loss a year earlier.
- Revenue rose 20% to N2.063tn, while cash and cash equivalents more than doubled to N544.9bn.
- Oando targets 50,000 boepd in 2026 and 100,000 boepd medium-term, backed by new drilling, well interventions and planned fundraising.
Oando Plc recorded a significant improvement in its financial performance in the first half of 2026, reversing a substantial operating loss reported an operating profit of N127.8 billion for H1 2026, compared with an operating loss of N158.7 billion in H1 2025.
The Energy Company turnaround was supported by increased production, lower unit operating costs and improved performance from the company’s enlarged upstream asset portfolio.
The result marks a major shift in Oando’s financial position as the company continues to integrate and derive value from its expanded asset base.
Oando’s group revenue increased by 20 per cent year-on-year, rising to N2.063 trillion from N1.720 trillion in the first half of 2025.
The company attributed the growth to stronger contributions from its Exploration & Production and Trading businesses, reflecting improved activity across its core operations.
Gross profit also recorded a substantial increase, jumping 331 per cent to N101 billion. Oando said the improvement was driven largely by lower operating costs and a reduction in its overlift position.
Lower Expenses Support Profitability
The company’s administrative expenses declined by four per cent to N77.8 billion during the period.
The reduction was supported by a N10.2 billion net foreign exchange gain, as well as lower depreciation expenses.
Oando also benefited significantly from the reversal of impairment provisions. The Group recorded a N55.9 billion net impairment reversal on financial assets, compared with a N197.5 billion impairment charge in H1 2025.
These developments helped strengthen the company’s bottom line despite continued pressure from financing costs.
Profit after tax increased by eight per cent, reaching N68.6 billion, compared with N63.3 billion recorded in the same period of 2025.
Earnings per share showed an even stronger improvement, rising by 60 per cent to N8 per share.
The figures indicate that the company’s stronger operating performance is beginning to translate into improved returns for shareholders.
Oando also reported a major improvement in cash generation during the period.
Net cash generated from operating activities stood at N110 billion, compared with a cash outflow of N357.5 billion in H1 2025.
Operating cash before interest and tax was N179.5 billion, while cash and cash equivalents at the end of the reporting period reached N544.9 billion.
That figure was more than twice the N194.2 billion recorded at the end of H1 2025, giving the company a stronger liquidity position as it pursues further expansion.
Despite the improved operating and cash-flow performance, Oando continues to face significant financing costs.
Net finance costs stood at N161.3 billion, while interest payments amounted to N98.9 billion.
The interest expense represented approximately 55 per cent of cash generated from operations, highlighting the financial burden associated with the company’s current capital structure.
