Oando Reports Revenue N2.78trn Growth As Production Rises 14% in 9 Months

Oando Plc, has published its unaudited results for the nine months ended September 30, 2026, reporting a nine per cent increase in revenue to N2.78 trillion.

The revenue growth, according to the company, reflects higher crude oil liftings, increased gas and Natural Gas Liquids sales volumes, and improved average realised prices across its expanded upstream portfolio.

The results showed a significant turnaround in operating performance, with the Group moving from an operating loss of N109.7 billion in nine months 2025 to an operating profit of N159.7 billion in 2026. Gross profit increased by 483 per cent to N174.5 billion, compared with N29.8 billion in the corresponding period of 2025.

The improvement in profitability was attributed to improved production efficiency, with facility uptime rising to 96.1 per cent from 85 per cent in the prior year, and lower unit costs.

Speaking on the results, group chief executive of Oando, Wale Tinubu said, “our performance in the first nine months of 2026 demonstrates how diligent execution under our operatorship, supported by our renewed investment drive, is delivering greater efficiency, improved reliability, lower unit costs and ultimately higher production across our expanded upstream portfolio.”

“Production averaged 42,985 boepd, up 14 per cent year-on-year, while facility uptime improved to 96.1 per cent and production operating costs declined by 22 per cent to US$15.39 per boe. These gains were achieved with zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked,” Tinubu added.

Operational data showed average daily production increased from 37,614 boepd in 2025 to 42,985 boepd in 2026. Crude oil production rose 12 per cent to 12,193 barrels per day, gas production increased 13 per cent to 28,689 boepd, and NGL production grew 53 per cent to 2,103 barrels per day.

Sales volumes also strengthened. Crude oil liftings rose 43 per cent to 3.97 million barrels, natural gas sales rose 5 per cent to 34.01 billion standard cubic feet, and NGL sales increased by 90 per cent to 0.57 million barrels. In total, Exploration and Production sales volumes rose by 21 per cent to 10.21 million barrels of oil equivalent.

Operational improvements further strengthened performance. Production operating costs declined by 22 per cent to US$15.39/boe, reflecting cost optimisation across transport, logistics, services, and information and communications technology, alongside higher production across a largely fixed field cost base.

On the financial position, total borrowings declined to N2.16 trillion, 22 per cent below the peak recorded at the end of 2024, while cash generated from operations reached N285 billion. The Group invested N110.7 billion in capital expenditure, primarily directed towards drilling across OMLs 60–63.

The Group’s seven-well drilling programme for 2026 has progressed. Idu 6ST and Idu 15 have been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T have been completed. Drilling is ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December 2026.

On completion, the drilling campaign is expected to add approximately 16,000 to 20,000 boepd gross of production, helping to sustain output and support its medium-term ambition of approximately 100,000 boepd in the next four to five years.