Oando PLC, Africa’s leading indigenous energy solutions provider listed on both the Nigerian Exchange (NGX) and Johannesburg Stock Exchange (JSE), has reported a significant improvement in its financial and operational performance, recording revenue of ₦2.78 trillion for the nine months ended September 30, 2026.
The company’s unaudited results showed a 9 per cent increase in revenue, driven by higher crude oil liftings, increased natural gas and Natural Gas Liquids (NGL) sales volumes, as well as improved average realised prices.
More significantly, Oando returned to operating profitability, posting an operating profit of ₦159.7 billion, compared with an operating loss of ₦109.7 billion recorded in the corresponding period of 2025.Gross profit also surged by 483 per cent to ₦174.5 billion from ₦29.8 billion in the previous year, reflecting improved production efficiency, stronger output and enhanced operational reliability.
The performance was supported by a significant improvement in facility uptime, which rose to 96.1 per cent from 85 per cent in the corresponding period of 2025.Commenting on the results, Wale Tinubu, CON, Group Chief Executive of Oando PLC, said the company’s performance during the period demonstrated the benefits of disciplined operational execution, increased investment and improved efficiency 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 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.”
Oando’s upstream operations recorded significant production growth during the nine-month period, with average daily production increasing by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), compared with 37,614 boepd in the corresponding period of 2025.
Growth was recorded across crude oil, natural gas and NGL production.Crude oil production increased by 12 per cent to 12,193 barrels per day, while gas production rose by 13 per cent to 28,689 boepd. NGL production recorded the strongest growth, increasing by 53 per cent to 2,103 barrels per day.The improvement in production volumes translated into higher sales across the Group’s exploration and production operations.
Crude oil liftings increased 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 (Bscf).NGL sales also recorded substantial growth, increasing by 90 per cent to 0.57 million barrels.
Consequently, total exploration and production sales volumes increased by 21 per cent to 10.21 million barrels of oil equivalent (MMboe).Operating Efficiency and Safety GainsThe Group also recorded significant improvements in operational efficiency, with production operating costs declining by 22 per cent to US$15.39 per barrel of oil equivalent.
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The reduction reflected cost optimisation across transportation, logistics, services, and information and communications technology, alongside increased production across a largely fixed field cost base.Operational reliability also improved, with facility uptime reaching 96.1 per cent, strengthening production and evacuation infrastructure and positioning the company to handle additional volumes as its development programme progresses.
On safety, Oando recorded zero fatalities and zero lost-time injuries during the period, despite approximately 14.9 million hours worked.This represented a 55 per cent increase in total hours worked compared with the corresponding period of 2025.Capital Investment and Drilling ProgrammeOn the financial front, Oando continued to strengthen its balance sheet and cash generation capacity.
Total borrowings declined to ₦2.16 trillion, representing a 22 per cent reduction from the peak recorded at the end of 2024.Cash generated from operations reached ₦285 billion, while capital expenditure stood at ₦110.7 billion, largely directed towards drilling activities across OMLs 60–63.The company’s seven-well drilling programme for 2026 is progressing across its operated assets.Idu 6ST and Idu 15 have been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T have also been completed.
Drilling activities are ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December 2026.Upon completion, the drilling campaign is expected to contribute approximately 16,000 to 20,000 boepd of additional gross production.The anticipated increase is expected to sustain output, offset natural field decline across the company’s operated portfolio and support its medium-term ambition of achieving approximately 100,000 boepd within the next four to five years.
Oando Expands Electric Mobility Operations
Beyond its traditional upstream operations, Oando is also expanding its presence in the clean energy and electric mobility market.Its electric bus partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) recorded more than 212,000 passenger journeys during the first nine months of 2026, with average capacity utilisation of 73 per cent.
The company also received an additional 11 electric buses, representing the first batch of a planned 50-bus expansion.The delivery brings the total fleet to 13 electric buses, with the expanded fleet expected to commence operations in the fourth quarter of 2026.LAMATA will operate the buses on behalf of the Lagos State Government.
The initiative underscores Oando’s growing commitment to cleaner transportation solutions and the development of sustainable urban mobility infrastructure.
2026 Outlook: Production Target of 40,000–45,000boepd
As the company enters the final quarter of 2026, management is prioritising the completion of its drilling programme, sustaining operational reliability and advancing its capital management initiatives.Oando has narrowed its full-year production guidance to between 40,000 and 45,000 boepd, while projecting full-year capital expenditure of approximately US$90 million to US$100 million.
The planned expenditure will primarily focus on high-impact, short-cycle upstream activities designed to accelerate production growth and improve returns on investment.
