Oando records N74.65 billion pre-tax loss in 9M 2026 as finance costs hit N235.23 billion

Oando Plc recorded a pre-tax loss of N74.65 billion for the nine months ended September 30, 2026, compared with a pre-tax profit of N19.46 billion in the corresponding period of 2025, as high net finance costs outweighed a recovery in operating profit.

According to the company’s unaudited consolidated financial statements filed with the Nigerian Exchange (NGX) on Friday, October 30, 2026, revenue increased by 9.23% to N2.78 trillion from N2.54 trillion.

Despite the pre-tax loss, Oando reported an after-tax profit of N106.45 billion, supported by an N181.10 billion income tax credit, although this was 47.12% below the N201.31 billion recorded a year earlier.

Finance costs wipe out operating gains:

Oando’s operating profit recovered to N159.69 billion from a loss of N109.73 billion, supported by higher gross profit and an improvement in other operating income.

• However, net finance costs reached N235.23 billion, compared with net finance income of N128.01 billion in the corresponding period of 2025, pushing the group into a pre-tax loss.
• Gross profit increased by 484.73% to N174.53 billion from N29.85 billion, lifting gross margin to approximately 6.29% from 1.17%.
• Other operating income improved to N80.74 billion from a N159.89 billion loss, including N45.88 billion in net foreign exchange gains and N12.43 billion in profit from asset sales.
• Finance costs stood at N244.20 billion, including N218.58 billion in bank interest, while finance income declined to N8.98 billion from N368.69 billion.
• Administrative expenses increased by 21.1% to N157.91 billion, including approximately N79 billion in professional fees.
• The decline in finance income was particularly significant, as the corresponding 2025 period included N321.10 billion in interest income from loan receivables and deposits.

Nairametrics previously reported that Oando’s full-year 2025 after-tax profit of N204.81 billion was also supported by a tax credit rather than stronger pre-tax earnings.

For the nine months of 2026, the N181.10 billion tax credit included N254.40 billion in reversals of previously recognised tax provisions.

Oando Upstream revenue jumps 58.5%:

Oando’s Exploration and Production segment recorded revenue growth of 58.5% to N553.64 billion, reflecting stronger upstream performance during the nine-month period.

• The segment also returned to an operating profit of N183.52 billion from a loss of N138.81 billion, although financing expenses continued to affect its bottom line.
• Exploration and Production recorded a pre-tax loss of N13.87 billion after N198.28 billion in net finance costs.
• Supply and Trading revenue increased by 1.4% to N2.22 trillion, but its operating loss widened to N28.20 billion from N6.84 billion.
• Third-quarter group revenue declined by 13.2% to N712.62 billion, while pre-tax earnings swung to a N41.81 billion loss from a N165.20 billion profit.
• Third-quarter net finance costs reached N73.93 billion, compared with net finance income of N115.04 billion in the corresponding period of 2025.
• During the third quarter, Exploration and Production revenue increased to N209.41 billion from N81.80 billion, while Supply and Trading revenue declined by approximately 32% to N501.79 billion.

The Supply and Trading segment’s quarterly operating loss widened to N31.85 billion, while group operating profit declined by 35% to N31.85 billion.

Despite higher quarterly gross profit, after-tax profit fell by 72.5% to N37.90 billion from N137.99 billion.

Oando debt falls to N2.16 trillion:

Oando reduced its borrowings by 19.8% to N2.16 trillion from N2.70 trillion at the end of December 2025, reflecting substantial loan repayments during the period.

• The company repaid N792.69 billion in borrowings and raised N457.67 billion in new loans, resulting in a net reduction of approximately N335.02 billion.
• Operating cash flow improved to N217.79 billion from a negative N234.98 billion in the corresponding period of 2025.
• Financing activities recorded net outflows of N337.14 billion, while cash and cash equivalents declined by 60% to N175.94 billion.
• Total assets declined by 32.26% to N5.04 trillion, while total liabilities fell by 30.65% to N5.56 trillion.
• Shareholders’ equity remained negative at N512.59 billion, although retained earnings improved to N19.78 billion from a negative N88.49 billion.
• Part of the balance-sheet contraction reflected the planned sale of Oando’s 95% stake in Oando Petroleum Development Company Limited to Energia Limited for a base price of $48.45 million.
• Oando shares declined by 4.55% to N31.50 on October 30, representing a year-to-date loss of approximately 21.64% and a market capitalisation of about N390.6 billion.

Investors will be monitoring whether further debt reduction and sustained upstream profitability can offset financing costs and restore recurring pre-tax profitability.