Oando Grows Half-Year Revenue to N2.1trn

Oando Plc has reported a strong financial and operational performance for the first half of 2026, recording a 20 percent increase in revenue to N2.1 trillion for the six months ended June 30, 2026. The energy company attributed the growth to higher crude oil production, improved operational efficiency and continued efforts to optimise costs across its operations.

The latest performance marks an important stage in Oando’s post-acquisition growth strategy, particularly following the company’s expanded upstream portfolio. The company said the first half of 2026 represented an important inflection point in its development, with the benefits of integrating its enlarged upstream assets increasingly reflected in production and financial performance.

Alongside the revenue increase, Oando recorded an eight percent rise in profit after tax to N68.6 billion. Gross profit recorded an even stronger improvement, surging by 331 percent to N101 billion during the period. The significant increase in gross profit indicates that the company’s higher revenue was accompanied by substantial improvement in its gross-profit position.

A major contributor to the performance was the increase in oil and gas production. Oando’s average daily production increased by 16 percent to 42,789 barrels of oil equivalent per day (boepd), compared with 36,836 boepd in the first half of 2025.

Crude oil production increased by 19 percent to 12,358 barrels per day, while gas production rose by 14 percent to 28,497 boepd. Natural gas liquids production also increased by 16 percent to 1,935 boepd. These improvements demonstrate the contribution of increased production volumes to the company’s overall revenue performance.

Oando attributed the production growth to several operational improvements, including the successful drilling of new wells, the restoration of 12 previously shut-in wells and improved facility uptime across Oil Mining Leases 60 to 63.

Facility uptime increased to 92 percent in the first half of 2026 from 85 percent in the corresponding period of 2025. Higher uptime means that the company was able to keep its production facilities operational for a greater proportion of the period, supporting increased output and improving the utilisation of its upstream assets.

Cost management was another important component of the company’s performance. Production operating costs declined by 18 percent to $16.83 per barrel of oil equivalent during the period. The reduction indicates that Oando was able to increase production while simultaneously lowering the average operating cost associated with producing each barrel of oil equivalent.

For an energy company operating in a volatile commodity environment, cost efficiency is particularly important. Changes in crude oil prices, production volumes, foreign-exchange conditions and operating expenses can significantly affect profitability. Reducing production costs therefore provides greater resilience and can help protect margins when market conditions become less favourable.

Oando’s trading business also recorded growth during the period. Trading volumes increased by 2.1 percent to 13.15 million barrels, supported by expanded crude oil marketing and offtake programmes as well as increased sourcing from marginal field producers.

The improvement in trading activity adds another dimension to the company’s performance. While upstream production remained a major driver of growth, the increase in trading volumes demonstrates the contribution of Oando’s wider energy portfolio to its business activities.

The company’s performance follows a significant transformation in its upstream operations. Oando’s acquisition of additional interests in the Nigerian Agip Oil Company joint venture has increased the scale of its upstream portfolio, and the company has subsequently focused on integrating those assets and improving their operational performance.

Oando’s 2025 results had already shown the impact of the expanded portfolio, with the company reporting average production of 32,482 boepd for the full year and highlighting improved operational reliability across its core assets. The company has described the transition as one from acquisition-led growth toward operational execution and balance-sheet optimisation.

The first-half results suggest that this strategy continued to gain traction in 2026. Higher production, improved facility uptime and lower operating costs provide evidence of operational progress, while the increase in revenue demonstrates the financial contribution of the expanded asset base.

For investors, however, the most important consideration will be whether Oando can sustain these improvements over the remainder of the year. The energy sector remains exposed to international oil-price movements and other factors beyond the company’s direct control. Maintaining production levels and cost discipline will therefore remain critical to protecting earnings.

The company’s financial performance also has wider implications for Nigeria’s energy industry. Higher domestic production can contribute to increased activity across the oil and gas value chain, including logistics, field services, engineering and other support industries. Improved production from indigenous operators can also contribute to the broader objective of strengthening Nigeria’s domestic energy capacity.

At the same time, the company’s continued emphasis on gas production is significant. Gas remains an important component of Nigeria’s energy transition and industrialisation strategy, with potential applications in electricity generation, manufacturing and other economic activities. Oando’s increase in gas production therefore forms part of a broader opportunity within Nigeria’s energy market.

Group Chief Executive Officer Wale Tinubu said the first-half performance reflected the successful integration of Oando’s expanded upstream portfolio. The results indicate that the company is increasingly focused on extracting operational value from its assets rather than relying solely on acquisitions to drive expansion.

The challenge ahead will be to convert the improved operational performance into sustainable long-term growth. This will require continued investment in wells and infrastructure, strong facility management, disciplined costs and effective management of market risks.

Oando’s first-half results nevertheless provide a positive indication of the company’s current trajectory. Revenue reached N2.1 trillion, profit after tax rose to N68.6 billion, gross profit climbed to N101 billion and average daily production increased to 42,789 boepd.

These figures point to a company benefiting from increased production and improving operational efficiency. As Oando moves into the second half of 2026, its ability to sustain production growth, control costs and maximise the value of its expanded asset portfolio will determine whether the momentum achieved during the first six months can translate into stronger full-year performance.

For Nigeria’s indigenous energy sector, Oando’s results also underscore the potential of domestic operators to play a larger role in oil and gas production. If the company can maintain its operational gains, its post-acquisition strategy could provide a foundation for continued expansion while contributing to greater activity and investment across Nigeria’s energy value chain.