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 liftings, increased gas and Natural Gas Liquids (NGL) sales, and improved average realised prices.
The indigenous energy company also recorded a significant improvement in profitability, swinging from an operating loss of ₦109.7 billion in the corresponding period of 2025 to an operating profit of ₦159.7 billion in the first nine months of 2026.
According to the company’s unaudited financial results, gross profit surged by 483 per cent to ₦174.5 billion, compared with ₦29.8 billion recorded in the corresponding period last year.
The improved performance was supported by stronger production, enhanced operational efficiency and increased facility reliability, with production facility uptime rising to 96.1 per cent from 85 per cent.
Commenting on the results, Group Chief Executive of Oando Plc, Wale Tinubu, said the performance reflected the impact of improved operational execution and renewed investment across the company’s expanded upstream portfolio.
He disclosed that average daily production increased by 14 per cent year-on-year to 42,985 barrels of oil equivalent per day (boepd), while production operating costs declined by 22 per cent to $15.39 per barrel of oil equivalent.
Tinubu added that the company achieved the production growth alongside improved operational reliability, recording zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked during the period.
A breakdown of production figures showed that crude oil output increased by 12 per cent to 12,193 barrels per day, while gas production rose by 13 per cent to 28,689 boepd.
Similarly, NGL production recorded the strongest growth, increasing by 53 per cent to 2,103 barrels per day.
The growth in production translated into higher sales volumes across the company’s upstream business. Crude oil liftings increased by 43 per cent to 3.97 million barrels, while natural gas sales rose by five per cent to 34.01 billion standard cubic feet (Bscf).
NGL sales also surged by 90 per cent to 0.57 million barrels, pushing total exploration and production sales volumes up by 21 per cent to 10.21 million barrels of oil equivalent.
Oando attributed the reduction in operating costs to optimisation across transportation, logistics, services and information and communications technology, as well as higher production volumes spread across a largely fixed field cost base.
On its financial position, the company disclosed that 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 stood at ₦285 billion, while capital expenditure during the nine-month period amounted to ₦110.7 billion, largely directed towards drilling activities across OMLs 60–63.
The company’s seven-well drilling programme for 2026 has also recorded progress across its operated assets.
Oando said the Idu 6ST and Idu 15 wells had been completed and brought on stream, while workovers on Samabri 4T and Samabri 7T had also been completed.
Drilling activities are ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to commence in December 2026.
Upon completion, the drilling campaign is expected to contribute between 16,000 and 20,000 boepd in gross production, helping to sustain output and offset natural field decline.
The programme is also expected to support the company’s medium-term ambition of achieving approximately 100,000 boepd within the next four to five years.
In its clean energy business, Oando reported growing adoption of its electric mobility initiative in partnership with the Lagos Metropolitan Area Transport Authority (LAMATA).
The electric buses deployed under the partnership 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, had arrived in Lagos, bringing the fleet to 13. The expanded fleet is expected to commence operations in the fourth quarter, with LAMATA managing the buses on behalf of the Lagos State Government.
Looking ahead, Oando said its priorities for the final quarter include completing its drilling programme, sustaining operational efficiency and strengthening its balance sheet.
The company has narrowed its full-year production guidance to between 40,000 and 45,000 boepd, while projecting capital expenditure of approximately $90 million to $100 million, primarily for high-impact, short-cycle upstream activities.
Tinubu said the company was also preparing for an equity raise aimed at strengthening shareholders’ funds, reducing leverage and improving its capacity to finance future growth.
He noted that the planned capital initiative, alongside continued operational improvements, would position the company to pursue expansion opportunities and enhance shareholder value.
Oando Plc is listed on both the Nigerian Exchange (NGX) and the Johannesburg Stock Exchange (JSE).
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