Oando’s N68.6bn half year profit represents 8% growth

Oando Plc has released its unaudited results for the six months (H1) ended June 30, 2026. The company’s operational delivery and value realisation drive earnings and cash growth in the first half.

Oando Plc delivered average production of 42,789 boepd (+16 percent YoY), within guidance, supported by new wells drilled, the restoration of previously shut-in wells and improved uptime.

Its production opex reduced 18 percent to $16.83/boe (H1 2025: $20.62/boe), reflecting delivery of the Group’s cost optimisation initiatives across the enlarged asset base.

Oando recorded facility uptime of 92 percent (H1 2025: circa 85 percent) and zero lost-time injuries recorded during the period.

Trading volumes of 13.15 MMbbl (H1 2025: 12.88 MMbbl), was supported by increased sourcing from marginal field producers. Oando H1 revenue went up 20 percent year-on-year to N2.1 trillion (H1 2025: N1.7 trillion), led by growth in the E&P segment and higher product prices.

Profit after tax (PAT) went up 8 percent to N68.6 billion (H1 2025: N63.3 billion), supported by improved operating profits and tax credits. Cash generated from operations stood at N179.5 billion, against N287.9 billion used in H1 2025, reflecting improved operational cash conversion.

Capex of N81.4 billion (H1 2025: N48.3 billion) was directed to high-impact upstream drilling across OMLs 60–63 and the non-operated portfolio.

The company reported closing cash and cash equivalents of N544.9 billion (H1 2025: N194.2 billion), strengthening the Group’s liquidity position. Corporate Facility and Medium-Term Loan were restructured, with both facilities in good standing.

Oando commenced long-term gas supply of 11.2 MMscfd to the newly commissioned 60 MW Bayelsa Independent Power Plant, expanding the Group’s domestic gas monetisation portfolio.

The company also executed the Production Sharing Contract (PSC) for Block KON 13 in Angola, following the award of the block in January 2025, with Oando holding a 45 percent participating interest and serving as operator.

Commenting on the results, Wale Tinubu, group chief executive, Oando Plc said: “The first half of 2026 marks an important inflection point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio.

“The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation.Operational efficiency underpinned our performance during the period as we strengthened asset integrity, improved facility reliability and reinforced security across our operating areas, resulting in average facility uptime of 92 percent while reducing production operating costs by 18 percent to US$16.83 per boe.

“Our development programme also gathered significant momentum during the period as we successfully drilled and completed two land development wells, with an additional land well currently being drilled, while mobilising a second drilling rig to accelerate activity across our operated portfolio. In parallel, we continued an extensive programme of rig-less well interventions designed to restore production, sustain plateau output and mitigate natural field decline.

“Together, these activities increased average production to 42,789 boepd, representing 16 percent year-on-year growth.This translated into a stronger financial performance, with revenue increasing by 20 percent to N2.1 trillion, while the business generated N179.5 billion in operating cash, improving liquidity. Profit after tax also increased by 8 percent to N68.6 billion, reflecting the overall improvement in operating performance during the period”.

“Looking ahead in 2026, Tinubu said, “Our priorities remain firmly centred on completing our sevenwell drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd. Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium-term production ambition of approximately 100,000 boepd.

“Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder valueWe have built a resilient operating platform and established a clear roadmap for growth. Our focus is now on translating our significant opportunities into higher production, a stronger balance sheet and superior long-term returns for our shareholders,” he added.