African energy leader Oando Plc, cross-listed on both the Nigerian Exchange and the Johannesburg Stock Exchange, has announced its financial and operational performance for the nine months concluding on September 30, 2026. The conglomerate posted a 9% increase in total revenue, reaching ₦2.78 trillion, driven primarily by higher crude oil liftings, elevated gas and Natural Gas Liquids (NGL) sales volumes, and favorable market realization prices.
Financial metrics showed substantial improvement across the board, moving the Group from an operating loss of ₦109.7 billion recorded in the corresponding period of 2025 to a robust operating profit of ₦159.7 billion for the first three quarters of 2026. Gross profit surged by 483% to ₦174.5 billion, up from ₦29.8 billion previously, underscoring enhanced production efficiencies and a facility uptime rate of 96.1%, compared to 85% in the prior year.
What did management say about the financial turnaround?
Addressing the performance, Group Chief Executive Wale Tinubu noted that the results highlight the success of strategic execution under the company's operatorship and renewed capital investments. Tinubu emphasized that heightened operational reliability and tighter cost controls yielded a 14% year-on-year rise in daily production, averaging 42,985 barrels of oil equivalent per day (boepd), while production operating costs dropped by 22% to $15.39 per boe without any fatalities or lost-time injuries across nearly 14.9 million work hours.
How did individual segments perform operationally?
The company’s upstream division witnessed output expansion across multiple hydrocarbons. Crude oil production grew by 12% to 12,193 barrels per day, natural gas output rose 13% to 28,689 boepd, and NGL production expanded by 53% to 2,103 barrels per day. Total exploration and production sales volumes advanced by 21% to reach 10.21 million barrels of oil equivalent (MMboe).
Concurrently, total borrowings fell to ₦2.16 trillion, representing a 22% reduction from the peak levels seen at the close of 2024, while cash generated from business operations hit ₦285 billion. Capital expenditures totaled ₦110.7 billion, channeled primarily toward drilling operations within Oil Mining Leases (OMLs) 60 through 63.
What is the status of the ongoing drilling campaign?
Oando’s active seven-well development agenda for 2026 continues to progress across operated fields. Wells Idu 6ST and Idu 15 have been finalized and integrated into active production, alongside completed workovers at Samabri 4T and Samabri 7T. Drilling remains active at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to commence drilling in December 2026.
Upon full completion, this campaign is projected to contribute an additional gross production volume of 16,000 to 20,000 boepd. This addition aims to offset natural reservoir declines and support the firm's medium-term aspiration of achieving approximately 100,000 boepd within the next four to five years.
In the green energy sector, electric buses deployed via Oando’s partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) facilitated over 212,000 passenger trips during the nine-month window, maintaining a 73% average capacity utilization. Eleven new electric buses arrived in Lagos to expand the fleet to 13 units, with commercial deployment slated for the final quarter under LAMATA’s management on behalf of the Lagos State Government.
Looking toward the remainder of the year, Oando has tightened its full-year production guidance to between 40,000 and 45,000 boepd, with projected capital expenditures ranging from $90 million to $100 million dedicated to short-cycle upstream projects.