Oando Plc has reported a 20 per cent increase in revenue to 2.1 trillion naira for the first half of 2026, driven by higher hydrocarbon production, improved operational efficiency and sustained cost optimization. The company’s unaudited results for the six months ended June 30, 2026 also showed profit after tax rising 8 per cent to 68.6 billion naira, while gross profit surged 331 per cent to 101 billion naira, with the company crediting lower transport, logistics, service and technology costs, alongside higher production across a largely fixed field cost base.
Operationally, Oando’s upstream subsidiary recorded facility uptime of 92 per cent during the period, up from 85 per cent a year earlier, resulting in a 16 per cent increase in average production to 42,789 barrels of oil equivalent per day, from 36,836 barrels previously. Production comprised crude oil output of 12,358 barrels per day, up 19 per cent, gas production of 28,497 barrels of oil equivalent per day, up 14 per cent, and natural gas liquids production of 1,935 barrels of oil equivalent per day, up 16 per cent. The company said the improved performance was driven by successful drilling of new wells, restoration of 12 previously shut in wells, and sustained improvements in facility uptime across its OML 60, 61, 62 and 63 assets. Its trading business also recorded a 2.1 per cent increase in crude trading volumes to 13.15 million barrels, supported by its crude oil marketing and offtake programmes along with increased sourcing from marginal field producers.
Group Chief Executive Wale Tinubu described the first half of the year as a major milestone in the company’s transformation, calling it an inflection point. “The first half of 2026 marks an important inflection point in Oando’s journey. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” he said. He noted that operational efficiency remained central to performance, with strengthened asset integrity, improved facility reliability and enhanced security helping to reduce production operating costs by 18 per cent to 16.83 dollars per barrel of oil equivalent, while the company’s drilling and well intervention programme gathered momentum with two development wells completed, a third currently underway, and a second drilling rig mobilized to accelerate activity across operated assets.
“Operational efficiency underpinned our performance during the period as we strengthened asset integrity, improved facility reliability and reinforced security across our operating areas, resulting in average facility uptime of 92 per cent while reducing production operating costs by 18 per cent to 16.83 dollars per barrel of oil equivalent,” Tinubu said. “Our development programme also gathered significant momentum during the period as we successfully drilled and completed two land development wells, with an additional land well currently being drilled, while mobilizing a second drilling rig to accelerate activity across our operated portfolio. In parallel, we continued an extensive programme of rig less well interventions designed to restore production, sustain plateau output and mitigate natural field decline. Together, these activities increased average production to 42,789 barrels of oil equivalent per day, representing 16 per cent year on year growth. This translated into a stronger financial performance, with revenue increasing by 20 per cent to 2.1 trillion naira, while the business generated 179.5 billion naira in operating cash, improving liquidity. Profit after tax also increased by 8 per cent to 68.6 billion naira, reflecting the overall improvement in operating performance during the period.”
Tinubu said the company has embarked on an extensive drilling programme across both its operated and non operated assets, with early results already evident across its OML 60 to 63 portfolio, and confirmed plans to complete a seven well drilling campaign across the Idu T, Samabri A and Ogbanbiri fields, alongside roughly 100 rig less well intervention activities across the portfolio this year to sustain production and mitigate natural decline. “Looking ahead in 2026, our priorities remain firmly centered on completing our seven well drilling programme and portfolio wide well intervention campaign while delivering production of circa 50,000 barrels of oil equivalent per day. Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium term production ambition of approximately 100,000 barrels of oil equivalent per day,” he said. “Furthermore, 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 and maximize long term shareholder value. We have built a resilient operating platform and established a clear roadmap for growth.”
The company reaffirmed its full year production guidance of between 40,000 and 50,000 barrels of oil equivalent per day, supported by its seven well drilling programme across OMLs 60 to 63, of which two wells have been completed and two remain in progress. Oando also revised guidance for its trading business to between 22 million and 26 million barrels following adjustments to its crude oil marketing programme, and said it continues to advance its Rights Issue, its planned 1.5 billion dollar multi instrument capital raising programme, and the expansion of its clean energy initiatives.
