Oando’s 9M post-tax profit reaches N106.45 billion as revenue rises to N2.78 trillion

Oando Plc reported an after-tax profit of N106.45 billion for the nine months ended September 30, 2026, compared with N201.31 billion in the corresponding period of 2025, as revenue increased by 9.23% to N2.78 trillion.

According to the company’s unaudited consolidated financial statements filed with the Nigerian Exchange (NGX) on Friday, October 30, 2026, revenue rose from N2.54 trillion in the corresponding period of 2025.

The group recorded a strong operating recovery, with operating profit reaching N159.69 billion from a loss of N109.73 billion a year earlier, supported by higher gross profit and improved upstream performance.

However, net finance costs of N235.23 billion pushed the company into a pre-tax loss of N74.65 billion, compared with a pre-tax profit of N19.46 billion in 2025.

Despite the pre-tax loss, Oando remained profitable after tax, supported by an N181.10 billion income tax credit, although net earnings declined by 47.12% year-on-year.

Key Highlights

• Revenue: N2.78 trillion (Up 9.23% YoY from N2.54 trillion).
• Gross profit: N174.53 billion (Up 484.73% YoY from N29.85 billion).
• Operating profit: N159.69 billion (Compared with an operating loss of N109.73 billion in 9M 2025).
• Net finance costs: N235.23 billion (Compared with net finance income of N128.01 billion in 9M 2025)
• Profit after tax: N106.45 billion (Down 47.12% YoY from N201.31 billion).
• Earnings per share (EPS): N11.70 (Down 28.66% YoY from N16.40).
• Total assets: N5.04 trillion (Down 32.26% from N7.45 trillion).
• Cash and cash equivalents: N175.94 billion (Down 60.00% from N439.88 billion).
• Shareholders’ equity: Negative N512.59 billion (Compared with negative N566.97 billion).

Management commentary

Commenting on the results, Oando Plc’s Group Chief Executive, Wale Tinubu, attributed the improved operating performance to higher production, stronger facility reliability and lower operating costs.

• “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,” he said.

Management disclosed that average daily production increased by 14% to 42,985 barrels of oil equivalent per day, while facility uptime improved to 96.1% from 85%. Production operating costs also declined by 22% to $15.39 per barrel of oil equivalent.

The company said its seven-well drilling programme was progressing, with two wells completed and brought onstream. It expects the programme to add approximately 16,000 to 20,000 barrels of oil equivalent per day in gross production upon completion.

On the outlook, Tinubu said:

• “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.”

Oando also narrowed its full-year production guidance to 40,000–45,000 barrels of oil equivalent per day.

Driving the numbers

Oando Plc’s revenue increased by 9.23% to N2.78 trillion in the nine months ended September 30, 2026, from N2.54 trillion in the corresponding period of 2025, supported by stronger contributions from its Exploration and Production business.

• The group’s Exploration and Production segment recorded revenue growth of 58.5% to N553.64 billion, while Supply and Trading revenue increased by 1.4% to N2.22 trillion.

• Supply and Trading remained the largest contributor to revenue, accounting for approximately 80% of group sales, while Exploration and Production contributed about 20%.

Despite the modest increase in total revenue, gross profit rose sharply by 484.7% to N174.53 billion from N29.85 billion, as cost of sales increased at a slower pace than revenue.

• Consequently, gross profit margin improved to 6.3% from 1.2%, reflecting stronger profitability from the group’s revenue-generating activities.

Operating profit also recovered to N159.69 billion from an operating loss of N109.73 billion in the corresponding period of 2025.

• The improvement was supported by other operating income of N80.74 billion, compared with an operating loss of N159.89 billion recorded under the same line item a year earlier.

• Other operating income included N45.88 billion in net foreign exchange gains and N12.43 billion in gains from asset sales.

However, administrative expenses increased by 21.1% to N157.91 billion from N130.41 billion, including approximately N79 billion in professional fees..

Finance costs weigh on pre-tax earnings

Despite the strong recovery in operating profit, Oando recorded a pre-tax loss of N74.65 billion, compared with a pre-tax profit of N19.46 billion in the corresponding period of 2025.

The loss was largely driven by net finance costs of N235.23 billion, compared with net finance income of N128.01 billion a year earlier.

• Gross finance costs actually declined to N244.20 billion from N288.79 billion, with bank interest accounting for N218.58 billion of the 2026 figure.
• However, finance income fell sharply to N8.98 billion from N368.69 billion in the corresponding period of 2025.
• The decline in finance income more than offset the reduction in finance costs, weakening the group’s pre-tax performance.

Nevertheless, Oando reported an after-tax profit of N106.45 billion, supported by an income tax credit of N181.10 billion.

• The tax credit included N254.40 billion in reversals of previously recognised tax provisions.

Although this allowed the group to remain profitable after tax, net profit declined by 47.1% from N201.31 billion in the corresponding period of 2025.

Balance sheet and cash flow

Oando’s total assets declined by 32.3% to N5.04 trillion as of September 30, 2026, from N7.45 trillion at the end of December 2025, largely reflecting a reduction in current assets and non-current receivables.

• Trade and other receivables fell to N556.85 billion from N2.19 trillion, while non-current receivables declined to N215.49 billion from N483.59 billion.
• Property, plant and equipment also decreased to N2.62 trillion from N2.93 trillion.

The balance-sheet contraction also reflected the classification of assets associated with the planned disposal of Oando’s 95% stake in Oando Petroleum Development Company Limited as held for sale.

On the funding side, total liabilities declined by 30.7% to N5.56 trillion from N8.01 trillion, driven mainly by lower trade and other payables, which fell to N2.44 trillion from N4.08 trillion, alongside a reduction in borrowings.

• Total borrowings decreased by 19.8% to N2.16 trillion from N2.70 trillion, while shareholders’ equity remained negative at N512.59 billion, although this improved from a negative N566.97 billion at December 2025.

On cash flow, net cash generated from operating activities improved to N217.79 billion from an outflow of N234.98 billion in the corresponding period of 2025.

• However, investing activities recorded a net outflow of N92.31 billion, while financing activities consumed N337.14 billion, reflecting borrowing repayments of N792.69 billion against new loans of N457.67 billion.

• Consequently, cash and cash equivalents declined by 60% to N175.94 billion from N439.88 billion at the end of 2025, despite the improvement in operating cash generation.

Market performance

Oando Plc’s share price declined by 4.55% to N31.50 on Friday, October 30, 2026, from N33.00 in the previous trading session.

The stock has lost 21.64% year-to-date from its opening price of N40.20 at the beginning of 2026, while its month-to-date return stood at negative 10%.

At the closing price of N31.50, Oando’s market capitalisation stood at N391.59 billion.

Trading activity increased on October 30, with 7.64 million shares exchanged, compared with 1.21 million shares in the preceding session.