Oando Posts N127.8bn Operating Profit In H1

Oando Plc has reported a major turnaround in the first half of 2026, posting an operating profit of N127.8 billion compared to an operating loss of N158.7 billion in H1 2025, as higher production and lower unit costs began to flow through from its enlarged asset base.

Group revenue rose 20 per cent year-on-year to N2.063 trillion from N1.720 trillion, driven by growth in both the Exploration & Production and Trading segments.

Gross profit surged 331 per cent to N101 billion, supported by lower operating costs and a decline in overlift position. Administrative expenses fell four per cent to N77.8 billion, helped by a N10.2 billion net foreign exchange gain and lower depreciation.

The Group also recorded a net impairment reversal of N55.9 billion on financial assets, compared to a N197.5 billion charge in H1 2025.

Profit after tax rose by eight per cent to N68.6 billion from N63.3 billion, with earnings per share up by 60 per cent to N8 per share.

Cash generation improved sharply. Net cash from operating activities was N110.0 billion compared to a N357.5 billion outflow in H1 2025. Operating cash before interest and tax was N179.5 billion. The Group closed H1 with cash and cash equivalents of N544.9 billion, more than double the N194.2 billion recorded a year earlier.

However, finance costs remained elevated. Net finance cost stood at N161.3 billion and interest paid of N98.9 billion represented 55 per cent of cash generated from operations.

Speaking on the results, group chief executive, Wale Tinubu said, “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.”

Looking ahead, Oando said its priorities for 2026 include completing a seven-well drilling programme and a portfolio-wide well intervention campaign to deliver production of circa 50,000 boepd.

Beyond 2026, the Company identified 62 development wells and 55 planned interventions as the pathway to its medium-term target of approximately 100,000 boepd.

“We shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth,” Tinubu added.