• Revenue rises 9% to ₦2.78trn as gross profit surges 483% to ₦174.5 bn

• Beats total debt down to ₦2.16 trn

Oando Plc has returned to strong operating profitability, posting an operating profit of ₦159.7 billion for the nine months ended September 30, 2026, against an operating loss of ₦109.7 billion recorded in the corresponding period of 2025, as improved production, operational efficiency and higher crude oil and gas sales volumes strengthened its financial performance.

The indigenous energy group, listed on both the Nigerian Exchange and Johannesburg Stock Exchange, reported a 9 per cent increase in revenue to ₦2.78 trillion, driven by higher crude oil liftings, increased natural gas and Natural Gas Liquids (NGL) sales, and improved average realised prices.

Gross profit also surged by 483 per cent to ₦174.5 billion from ₦29.8 billion in the corresponding period of 2025, reflecting improved production efficiency and increased facility reliability, with operational uptime rising to 96.1 per cent from 85 per cent.

The performance was underpinned by a 14 per cent year-on-year increase in average daily production to 42,985 barrels of oil equivalent per day (boepd), alongside a 22 per cent reduction in production operating costs to $15.39 per barrel of oil equivalent.

Group Chief Executive of Oando, Wale Tinubu, said the results demonstrated the impact of disciplined execution under the company’s operatorship and renewed investment drive across its expanded upstream portfolio.

He 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% year-on-year, while facility uptime improved to 96.1% and production operating costs declined by 22% 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.”

A breakdown of production figures showed that the group’s average daily output increased from 37,614 boepd in 2025 to 42,985 boepd in the review period, with growth recorded across crude oil, natural gas and NGLs.

Crude oil production rose by 12 per cent to 12,193 barrels per day, while natural gas output increased by 13 per cent to 28,689 boepd. NGL production recorded the strongest growth, rising by 53 per cent to 2,103 barrels per day.

The increase in production translated into higher sales volumes across the company’s upstream portfolio. Crude oil liftings grew by 43 per cent to 3.97 million barrels, while natural gas sales increased by five per cent to 34.01 billion standard cubic feet (Bscf). NGL sales also surged by 90 per cent to 570,000 barrels.

Consequently, total exploration and production sales volumes increased by 21 per cent to 10.21 million barrels of oil equivalent.

The company attributed the improvement in operating efficiency to cost optimisation across transportation, logistics, services and information and communications technology, as well as higher production volumes spread across a largely fixed field cost base.

Beyond the financial gains, Oando reported a strong safety performance, recording zero fatalities and zero lost-time injuries during the period despite a 55 per cent increase in total hours worked to approximately 14.9 million compared with the corresponding period of 2025.

Improved facility uptime also enhanced the reliability of production and evacuation infrastructure, strengthening the company’s capacity to accommodate additional output as its upstream development programme progresses.

On the financial front, the group continued to pursue balance-sheet improvements, reducing total borrowings to ₦2.16 trillion, representing a 22 per cent decline from the peak recorded at the end of 2024. Cash generated from operations stood at ₦285 billion, while capital expenditure amounted to ₦110.7 billion, largely directed towards drilling activities across Oil Mining Leases (OMLs) 60–63.

The company’s renewed upstream investment drive is being driven by a seven-well drilling programme for 2026, which is progressing across its operated assets.

Oando said drilling operations at Idu 6ST and Idu 15 had been completed, with both wells brought on stream. Workovers at Samabri 4T and Samabri 7T had also been completed, while drilling was ongoing at Idu T and Samabri A50.

The final well in the programme, Ogbainbiri, is scheduled to spud in December 2026.

Upon completion, the campaign is expected to deliver additional gross production of between 16,000 and 20,000 boepd, helping to sustain output, offset natural field decline and strengthen the company’s medium-term production growth ambitions.

Oando is targeting production of approximately 100,000 boepd within the next four to five years, reflecting its strategy to unlock the potential of its expanded upstream asset portfolio through sustained drilling and operational improvements.

Meanwhile, the group’s diversification into clean energy and electric mobility is recording gradual progress, with electric buses deployed under its partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) recording more than 212,000 passenger journeys in the first nine months of 2026.

The buses achieved average capacity utilisation of 73 per cent during the period, while an additional 11 electric buses, representing the first batch of a planned 50, arrived in Lagos, bringing the fleet to 13.

The expanded fleet is expected to commence operations in the fourth quarter, with LAMATA operating the buses on behalf of the Lagos State Government.

Looking ahead, Oando said its priorities for the final quarter of 2026 include completing its drilling programme, sustaining operational reliability and strengthening its financial position through planned capital management initiatives.

The group has narrowed its full-year production guidance to between 40,000 and 45,000 boepd, while projecting capital expenditure of approximately $90 million to $100 million, largely targeted at high-impact, short-cycle upstream activities.

Tinubu said the company was also preparing an equity raise to strengthen shareholders’ funds, reduce leverage and improve its capacity to finance future growth.

“For the remainder of 2026, our priorities are to progress the seven-well development programme, sustain operational reliability and strengthen shareholders’ funds through our impending equity raise.

“These initiatives are intended to reduce leverage, enhance our capacity to fund growth and support future shareholder distributions. We have demonstrated what we can achieve across our strategic assets and are confident in the opportunities ahead. Our commitment remains to realise the full potential of our substantial resource base and deliver lasting value for our shareholders,” he said.

The latest results underscore the impact of Oando’s expanded upstream operations and renewed capital investment on its production profile, operating margins and cash generation, as the company seeks to consolidate its return to profitability, strengthen its balance sheet and build a more sustainable platform for long-term growth.