Oando Turns Around, Posts N159.7bn Operating Profit In 9 Months Amid Production Surge

Oando Plc has swung from an operating loss to an operating profit of N159.7 billion in the nine months ended 30 September 2026, as higher production, better facility reliability and lower costs lifted its performance.

In its unaudited results, the company, which is listed on the Nigerian Exchange and the Johannesburg Stock Exchange, reported an operating loss of N109.7 billion for the corresponding period of 2025. Group revenue rose by 9 per cent to N2.78 trillion, driven by higher crude oil liftings, increased gas and Natural Gas Liquids (NGL) sales volumes, and improved average realised prices.

Gross profit grew by 483 per cent to N174.5 billion, from N29.8 billion in the same period of 2025. Oando attributed this to improved production efficiency, with facility uptime rising to 96.1 per cent from 85 per cent.

Average daily production at the Group’s upstream subsidiary rose by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), up from 37,614 boepd a year earlier. Crude oil output increased by 12 per cent to 12,193 barrels per day, gas production grew by 13 per cent to 28,689 boepd, and NGL production rose by 53 per cent to 2,103 barrels per day.

Crude oil liftings jumped by 43 per cent to 3.97 million barrels, while natural gas sales rose by 5 per cent to 34.01 billion standard cubic feet. 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.

Production operating costs fell by 22 per cent to US$15.39 per barrel of oil equivalent, which Oando attributed to savings in transport, logistics, services, and information and communications technology, alongside higher output across a largely fixed field cost base.

The company also recorded zero fatalities and zero lost-time injuries over about 14.9 million working hours, 55 per cent more than in the same period of 2025.

Group chief executive Wale Tinubu said the results showed the effect of disciplined execution under the company’s operatorship and its renewed investment drive.

“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,” he said.

On the balance sheet, total borrowings fell to N2.16 trillion, which is 22 per cent below the peak recorded at the end of 2024. Cash generated from operations reached N285 billion, while capital expenditure stood at N110.7 billion, mostly for drilling across OMLs 60 to 63.

Oando’s seven-well drilling programme for 2026 is progressing. Idu 6ST and Idu 15 have been completed and brought on stream, and workovers at Samabri 4T and Samabri 7T are finished. Drilling is under way at Idu T and Samabri A50, while the final well, Ogbainbiri, is scheduled to spud in December 2026. Once completed, the campaign is expected to add about 16,000 to 20,000 boepd (gross), helping to offset natural field decline and support the company’s target of about 100,000 boepd within four to five years.

In clean energy, electric buses deployed by the Lagos Metropolitan Area Transport Authority (LAMATA) made more than 212,000 passenger journeys over nine months, with an average capacity utilisation of 73 per cent. Eleven more buses, the first batch of a planned 50, have arrived in Lagos, bringing the fleet to 13. The expanded fleet is expected to enter service in the fourth quarter, with LAMATA operating the buses on behalf of Lagos State.

For the full year, Oando has narrowed its production guidance to 40,000 to 45,000 boepd and expects capital expenditure of about US$90 million to US$100 million, with a focus on short-cycle upstream activities.

Mr Tinubu said the company’s priorities for the rest of 2026 are to advance the drilling programme, sustain operational reliability and strengthen shareholders’ funds through an impending equity raise. “These initiatives are intended to reduce leverage, enhance our capacity to fund growth and support future shareholder distributions,” he said.