Oando Revenue Hits ₦2.1trn as Oil, Gas Output Rises 16% in H1
Oando Plc recorded a 20 per cent increase in revenue to ₦2.1 trillion in the first half of 2026, driven by higher oil and gas production, improved operational efficiency and lower operating costs, as the indigenous energy company continues to unlock value from its expanded upstream portfolio.
The company, listed on both the Nigerian Exchange (NGX) and the Johannesburg Stock Exchange (JSE), announced its unaudited results for the six months ended June 30, 2026.
The strong performance was supported by cost optimisation initiatives, including lower transportation, logistics, services and ICT expenses, as well as increased production across a largely fixed-cost asset base.
As a result, profit after tax (PAT) rose eight per cent to ₦68.6 billion, while gross profit surged 331 per cent to ₦101 billion.
Operationally, Oando’s upstream business delivered a 92 per cent facility uptime, compared with 85 per cent in the corresponding period of 2025, leading to a 16 per cent increase in average production to 42,789 barrels of oil equivalent per day (boepd) from 36,836 boepd.
Crude oil production increased 19 per cent to 12,358 barrels per day (bpd), gas production rose 14 per cent to 28,497 boepd, while natural gas liquids (NGL) output climbed 16 per cent to 1,935 boepd.
The company attributed the production growth to the successful drilling of new wells, the restoration of 12 previously shut-in wells, and sustained improvements in facility reliability across OMLs 60, 61, 62 and 63.
Oando’s trading business also recorded a 2.1 per cent increase in trading volumes to 13.15 million barrels, supported by crude oil marketing and offtake programmes, as well as increased sourcing from marginal field operators.
Commenting on the results, Group Chief Executive of Oando Plc, Wale Tinubu, said the first half of 2026 marked a major turning point following the integration of one of Africa’s largest upstream acquisitions.
“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,” he said.
Tinubu noted that operational efficiency remained central to the company’s performance, with improved asset integrity, facility reliability and enhanced security helping to reduce production operating costs by 18 per cent to $16.83 per barrel of oil equivalent.
He added that Oando successfully drilled and completed two land development wells during the period, while another land well is currently being drilled. The company has also mobilised a second drilling rig and intensified rig-less well intervention activities aimed at restoring production, sustaining output and mitigating natural field decline.
According to him, these activities contributed to the increase in average production and generated ₦179.5 billion in operating cash flow, strengthening the company’s liquidity position.
Tinubu said Oando remains focused on achieving average production of about 50,000 boepd in 2026 through the completion of its seven-well drilling programme and a portfolio-wide well intervention campaign.
Beyond 2026, he disclosed that the company has identified 62 development wells and 55 planned well interventions, providing a pathway to its medium-term production target of approximately 100,000 boepd.
He also said the company would execute an intensive fundraising and balance-sheet restructuring programme aimed at strengthening liquidity, improving financial flexibility and supporting long-term growth.
The company reaffirmed its full-year production guidance of 40,000–50,000 boepd, supported by ongoing drilling activities across OMLs 60–63, where two wells have already been completed and two others are currently being drilled.
It also confirmed plans to advance its Rights Issue, the US$1.5 billion multi-instrument capital raising programme, and the expansion of its clean energy business.
The strong performance comes as other indigenous producers also reported production growth in the first half of the year. Seplat Energy Plc posted a 4 per cent increase in average production to 139,509 boepd, while Aradel Holdings Plc reported a 523 per cent jump in production to 139.5 kboepd, underscoring the continued expansion of Nigeria’s indigenous upstream oil and gas sector.
