Oando grows half-year revenue to N2.1 trillion

Oando Plc announced a significant 20% jump in revenue, reaching N2.1 trillion for the first half of the year ending June 30. This growth stems from increased crude oil production, enhanced operational efficiency, and effective cost optimization strategies. The company's unaudited financial results, released in Lagos, also revealed an 8% rise in profit after tax to N68.6 billion and a substantial 331% surge in gross profit to N101 billion.

Production metrics saw a notable improvement, with average daily output climbing 16% to 42,789 barrels of oil equivalent per day (boepd). This increase was composed of a 19% rise in crude oil output, a 14% increase in gas production, and a 16% growth in natural gas liquids production. Oando credited these gains to the successful drilling of new wells, the reactivation of 12 previously shut-in wells, and improved facility uptime across its Oil Mining Leases (OMLs) 60 to 63. Facility uptime improved to 92% in the first half of 2026, up from 85% in the same period of 2025.

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The first half of 2026 marks an important inflection point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation.

The company also reported a 18% reduction in production operating costs, bringing them down to $16.83 per barrel of oil equivalent. Oando's trading business also performed well, with trading volumes increasing by 2.1% to 13.15 million barrels, supported by expanded crude oil marketing and offtake programs. Group Chief Executive Officer, Mr. Wale Tinubu, highlighted the successful integration of the company's expanded upstream portfolio, stating that the performance reflects the "operational and financial outcomes expected from that transformation." He emphasized the company's focus on asset integrity, facility reliability, and security, which contributed to the improved uptime and reduced costs.

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Operational efficiency underpinned our performance 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 boe.