Oando PLC has reported a 9 per cent increase in revenue to ₦2.78 trillion for the nine months ended September 30, 2026, driven by higher crude oil production, stronger gas and natural gas liquids sales, and improved operational efficiency. The company also returned to operating profitability, posting an operating profit of ₦159.7 billion compared with a loss of ₦109.7 billion in the corresponding period of 2025.
Oando PLC, the indigenous energy company listed on the Nigerian Exchange (NGX) and Johannesburg Stock Exchange (JSE), has reported improved financial and operational performance in its unaudited results for the first nine months of 2026, reflecting sustained growth across its upstream portfolio and ongoing investments in production capacity.
The Group’s revenue rose by 9 per cent to ₦2.78 trillion, while gross profit surged by 483 per cent to ₦174.5 billion from ₦29.8 billion recorded in the corresponding period of 2025.
A significant improvement was also recorded at the operating level, with Oando moving from an operating loss of ₦109.7 billion in the first nine months of 2025 to an operating profit of ₦159.7 billion in 2026.
The improved results were supported by stronger crude oil liftings, increased natural gas and natural gas liquids (NGL) sales, higher average realised prices and better production efficiency.
Commenting on the performance, Wale Tinubu, CON, Group Chief Executive of Oando PLC, said the results reflected the impact of disciplined operational execution, renewed investment and improved reliability across the company’s expanded upstream portfolio.
According to Tinubu, average daily production increased by 14 per cent year-on-year to 42,985 barrels of oil equivalent per day (boepd), while facility uptime improved to 96.1 per cent from 85 per cent.
He added that production operating costs declined by 22 per cent to US$15.39 per barrel of oil equivalent, demonstrating improved cost efficiency across the company’s operations.
The Group also recorded zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked during the reporting period.
Oando Records Growth Across Crude Oil, Gas and NGL Production
Oando’s upstream operations recorded increased production across all three major product categories, strengthening the company’s overall output and sales performance.
Average daily production rose from 37,614 boepd in the first nine months of 2025 to 42,985 boepd in the corresponding period of 2026.
Crude oil production increased by 12 per cent to 12,193 barrels per day, while natural gas production rose by 13 per cent to 28,689 boepd. Natural gas liquids production recorded the strongest growth, increasing by 53 per cent to 2,103 barrels per day.
The company also recorded significant improvements in sales volumes.
Crude oil liftings increased by 43 per cent to 3.97 million barrels, while natural gas sales grew by 5 per cent to 34.01 billion standard cubic feet (Bscf).
NGL sales rose by 90 per cent to 0.57 million barrels, contributing to a 21 per cent increase in total exploration and production (E&P) sales volumes to 10.21 million barrels of oil equivalent.
The improved production and sales figures underscore the contribution of Oando’s upstream investment programme to its financial performance.
Operating Efficiency Improves as Production Costs Fall 22%
Operational efficiency remained a major contributor to Oando’s improved performance during the period.
The company reduced production operating costs by 22 per cent to US$15.39 per boe, supported by cost optimisation across transportation, logistics, services and information and communications technology.
Higher production volumes also helped improve cost efficiency across a largely fixed field-cost base.
Facility uptime improved significantly to 96.1 per cent, compared with 85 per cent in the corresponding period of 2025. The improvement strengthened the reliability of production and evacuation infrastructure, positioning the Group to accommodate additional output as its development programme advances.
Oando also maintained a strong safety record, recording no fatalities or lost-time injuries across approximately 14.9 million hours worked. Total hours worked increased by 55 per cent compared with the same period in 2025.
Oando Reduces Borrowings to ₦2.16 Trillion, Generates ₦285 Billion Operating Cash
The Group also reported progress in its financial management and cash generation initiatives.
Total borrowings declined to ₦2.16 trillion, representing a 22 per cent reduction from the peak recorded at the end of 2024.
Cash generated from operations reached ₦285 billion during the nine-month period, while capital expenditure stood at ₦110.7 billion.
The capital investments were primarily directed towards drilling activities across Oil Mining Leases (OMLs) 60–63, reflecting the company’s continued focus on expanding production and unlocking value from its operated assets.
The combination of improved operating profitability, stronger cash generation and lower borrowings represents an important development in Oando’s efforts to strengthen its financial position and support future growth.
Seven-Well Drilling Programme Targets Additional 20,000 boepd
Oando’s 2026 upstream investment programme is progressing across its operated assets, with the company pursuing a seven-well drilling campaign designed to increase production capacity and offset natural field decline.
The company disclosed that Idu 6ST and Idu 15 have been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T have also been completed.
Drilling operations are ongoing at Idu T and Samabri A50, while the final well in the programme, Ogbainbiri, is scheduled to spud in December 2026.
Upon completion, the drilling campaign is expected to contribute an additional 16,000 to 20,000 boepd in gross production.
The expected increase would support production sustainability across the operated portfolio and contribute to Oando’s medium-term ambition of achieving approximately 100,000 boepd within the next four to five years.
The programme highlights the company’s strategy of directing capital towards high-impact, short-cycle upstream opportunities capable of delivering additional production and improving asset performance.
Oando Expands Electric Mobility Operations in Lagos
Beyond its traditional oil and gas operations, Oando continued to advance its clean-energy and electric mobility initiatives during the reporting period.
Electric buses deployed through the company’s partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) recorded more than 212,000 passenger journeys in the first nine months of 2026, with average capacity utilisation of 73 per cent.
The company also disclosed that an additional 11 electric buses, representing the first batch of a planned 50 buses, had arrived in Lagos.
The new arrivals increased the electric bus fleet to 13, with the expanded fleet expected to commence operations in the fourth quarter of 2026.
LAMATA will operate the buses on behalf of the Lagos State Government.
The initiative forms part of Oando’s broader diversification strategy, extending its participation in Nigeria’s evolving energy landscape beyond conventional oil and gas production.
Oando Targets 40,000–45,000 boepd Production in Full-Year 2026
Looking ahead, Oando said its priorities for the final quarter of 2026 include completing its drilling programme, sustaining operational reliability and strengthening its capital structure.
The Group has narrowed its full-year production guidance to between 40,000 and 45,000 boepd, while projecting capital expenditure of approximately US$90 million to US$100 million for the year.
The planned expenditure will focus primarily on high-impact, short-cycle upstream activities.
Tinubu said the company would also prioritise strengthening shareholders’ funds through its proposed equity raise, which is expected to support debt reduction, improve funding capacity and create room for future shareholder distributions.
He expressed confidence in the opportunities available across the company’s strategic assets, emphasising its commitment to unlocking the potential of its resource base and delivering sustainable long-term value to shareholders.
Stronger Production and Profitability Position Oando for Long-Term Growth
Oando’s nine-month 2026 performance highlights the contribution of increased production, improved operational efficiency and stronger cash generation to its business outlook.
The 9 per cent revenue growth to ₦2.78 trillion, 483 per cent increase in gross profit and return to operating profitability reflect significant improvements in the company’s operating performance.
With production averaging 42,985 boepd, lower production costs, reduced borrowings and an active upstream drilling programme, the Group is positioning itself to sustain operational momentum into 2027.
Its investments in electric mobility also demonstrate an effort to build a broader energy business while maintaining upstream production growth as a central driver of its financial performance.
As Oando approaches the end of 2026, the successful execution of its drilling campaign, continued cost discipline and proposed capital restructuring will be important factors in determining how effectively the company translates its operational gains into sustained profitability and long-term shareholder value.