Oando Plc has reported an operating profit of N159.7bn for the nine months ended September 30, 2026, reversing an operating loss of N109.7bn recorded in the corresponding period of last year, amid improved production and operational efficiency.
The company's revenue increased by nine per cent to N2.78tn, while gross profit surged by 483 per cent to N174.5bn from N29.8bn in the same period of 2025.
The performance was driven by increased crude oil liftings, higher gas and Natural Gas Liquids sales volumes, improved realised prices and stronger production across its upstream operations, according to the unaudited results released by the company.
Oando's average daily production rose by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), compared with 37,614 boepd recorded in the corresponding period of 2025.
The Group Chief Executive of Oando, Wale Tinubu, said the results reflected the impact of increased investment and improved operational execution across the company's expanded upstream portfolio.
He said production growth was accompanied by improved facility reliability, with uptime rising to 96.1 per cent from 85 per cent, while production operating costs dropped by 22 per cent to $15.39 per barrel of oil equivalent.
Tinubu added that the company achieved the operational improvements without fatalities or lost-time injuries across approximately 14.9 million hours worked during the period.
Further details of the production figures showed that crude oil output increased by 12 per cent to 12,193 barrels per day, while gas production grew by 13 per cent to 28,689 boepd. Natural Gas Liquids production recorded a 53 per cent increase to 2,103 barrels per day.
The company also recorded significant growth in sales volumes, with crude oil liftings rising by 43 per cent to 3.97 million barrels.
Natural gas sales increased by five per cent to 34.01 billion standard cubic feet, while NGL sales jumped by 90 per cent to 570,000 barrels. Overall, exploration and production sales volumes grew 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 output across a largely fixed field cost base.
On its balance sheet, the company said total borrowings declined to N2.16tn, representing a 22 per cent reduction from the peak level recorded at the end of 2024.
Cash generated from operations stood at N285bn, while capital expenditure reached N110.7bn during the nine-month period, with the bulk of the investment channelled into drilling operations across OMLs 60–63.
The company also provided an update on its seven-well drilling programme for 2026, saying two wells, Idu 6ST and Idu 15, had been completed and brought on stream. Workovers on Samabri 4T and Samabri 7T had also been concluded.
Drilling is continuing at Idu T and Samabri A50, while the final well in the programme, Ogbainbiri, is expected to commence in December.
Oando said the completed campaign could contribute between 16,000 and 20,000 boepd in gross production, helping to counter natural field decline and advance its ambition of achieving approximately 100,000 boepd within the next four to five years.
Beyond its upstream operations, the company reported progress in its electric mobility business, disclosing that its electric buses deployed in partnership with the Lagos Metropolitan Area Transport Authority recorded more than 212,000 passenger journeys between January and September 2026.
The buses operated at an average capacity utilisation of 73 per cent. The company said 11 additional electric buses had arrived in Lagos, bringing its fleet to 13, with the expanded fleet expected to enter service in the fourth quarter.
For the full year, Oando has narrowed its production guidance to between 40,000 and 45,000 boepd and projected capital expenditure of $90m to $100m, to be directed mainly at short-cycle upstream projects.
Tinubu said the company would focus on completing its drilling programme, maintaining operational efficiency and strengthening its financial position in the final quarter.
He also disclosed plans for an equity raise aimed at strengthening shareholders' funds, reducing leverage and providing additional capacity to finance future growth.
According to him, the initiatives would position the company to unlock more value from its resource base and improve its ability to deliver sustainable returns to shareholders.
Leave a Reply