Nigerian Oando's revenues increased by 20% during the first half of 2026
Written by: Ayman Ragab
Oando Plc reported a 20 percent increase in revenue to 2.1 trillion Nigerian Naira during the first half ending June 30, driven by higher crude oil production, improved operational efficiency, and cost rationalization.
According to the company’s unaudited financial results announced Tuesday in Lagos, the company recorded an 8 percent increase in net profit after tax to 68.6 billion naira, while gross profit jumped 331 percent to 101 billion naira during the audit period.
The company’s average daily production increased by 16 percent to 42,789 barrels of oil equivalent per day (boepd), compared to 36,836 boepd during the same period in 2025.
Production growth included a 19 percent increase in crude oil production to 12,358 barrels per day, a 14 percent increase in gas production to 28,497 barrels of oil equivalent per day, and a 16 percent increase in natural gas liquids production to 1,935 barrels of oil equivalent per day.
Nigerian oil
The company attributed the improved performance to the successful drilling of new wells, the reactivation of 12 previously inactive wells, and the improved operational readiness of facilities through oil mining lease contracts (OMLs 60 to 63).
The company said that the facility readiness rate rose to 92 percent during the first half of 2026, compared to 85 percent during the same period in 2025.
She added that production operating costs decreased by 18 percent to $16.83 per barrel of oil equivalent during the period under review.
The company’s trading sector also recorded a 2.1 percent increase in trading volumes to 13.15 million barrels, supported by the expansion of crude oil marketing and purchasing programs, along with increased supplies from marginal field producers.
Exploration expansion
Oando Group CEO Wally Tinobo said the company's performance reflects the successful integration of its expanded portfolio in the exploration and production sector.
He added: “The first half of 2026 represents a significant turning point in Oando’s journey. Over the past two years, our priority has been to complete one of the largest upstream acquisitions in Africa and realize the full value of our expanded portfolio.”
He explained that the progress achieved during the period demonstrates the company's ability to achieve the expected operational and financial results from this transformation.
He said:
“Operational efficiency has supported our performance, as we have enhanced asset integrity, improved facility reliability, and strengthened security measures in our areas of operation, resulting in an average facility availability of 92 percent, while reducing production operating costs by 18 percent to $16.83 per barrel of oil equivalent.”
He noted that the company’s development program has gained significant momentum following the successful drilling and completion of two onshore development wells, with drilling continuing on another onshore well, in addition to the commissioning of a second drilling rig to accelerate activities in the company’s portfolio of operations.
He added that the company continued a broad program of well interventions without the use of drilling rigs, with the aim of restoring production, maintaining production levels and reducing the impact of the natural decline in field production.
He explained that these activities raised the average production to 42,789 barrels of oil equivalent per day, an annual increase of 16 percent.
He said that this was reflected in the financial performance, with revenues rising by 20 percent to 2.1 trillion naira, while the company achieved operating cash flows of 179.5 billion naira, which boosted liquidity.
He added that net profit after tax rose by 8 percent to 68.6 billion naira, reflecting the overall improvement in operating performance during the period.
Tinobo confirmed that Oando is on track to complete its seven-well drilling program through OMLs 60 to 63 oil leases and achieve an average production of approximately 50,000 barrels of oil equivalent per day during 2026.
He noted that the company has identified 62 development wells and 55 planned well interventions to support its medium-term goal of reaching production of approximately 100,000 barrels of oil equivalent per day.
Tinobo revealed plans to implement a fundraising and balance sheet restructuring program aimed at strengthening the company's financial position, improving liquidity, and accelerating growth.
The company confirmed it would continue to implement its rights issue, a $1.5 billion multi-instrument capital-raising program, while simultaneously expanding its clean energy initiatives.
GIK/APA
