Oando PLC, a leading African energy solutions provider listed on both the Nigerian Exchange Ltd. and the Johannesburg Stock Exchange, has announced a highly successful first half of 2026. The company’s latest unaudited results for the six months ending June 30 show significant growth across both operational and financial metrics.
Strong Financial Growth and Cost Efficiency
During the first half of the year, Oando’s revenue increased by 20 percent to reach ₦2.1 trillion. This financial boost was largely fueled by higher production volumes and a series of cost-cutting measures that lowered logistics, transport, and IT expenses.
These efficiencies directly impacted the company’s profitability:
- Gross Profit: Jumped by a massive 331 percent to ₦101 billion.
- Profit After Tax: Increased by 8 percent to ₦68.6 billion.
- Operating Costs: Production operating costs were successfully reduced by 18 percent down to US$16.83 per barrel of oil equivalent (boe).
- Operating Cash: The business generated ₦179.5 billion, greatly improving overall liquidity.
Operational Highlights: Uptime and New Wells
A major factor behind this success was the upstream subsidiary’s ability to maintain a 92 percent facility uptime, a solid improvement from 85 percent in H1 2025. This reliability led to a 16 percent rise in average production, bringing output to 42,789 barrels of oil equivalent per day (boepd).
The production breakdown highlights growth across all resources:
- Crude Oil: Rose 19 percent to 12,358 barrels of oil per day (bopd).
- Gas Volumes: Increased 14 percent to 28,497 boepd.
- Natural Gas Liquids (NGL): Went up 16 percent to 1,935 boepd.
These numbers were achieved through a combination of successful new drilling, the restoration of 12 previously shut-in wells, and consistent facility improvements across OMLs 60-63. Additionally, Oando’s trading division reported a 2.1 percent increase in trading volumes, moving 13.15 million barrels (MMbbl) by expanding its crude oil marketing programs.
Group Chief Executive Wale Tinubu CON praised the results, stating that the first half of 2026 marks an important turning point. He emphasized that the company is now fully realizing the value of its expanded portfolio following major upstream acquisitions over the past two years.
Industry Context and Future Outlook
Oando is not the only regional player seeing growth. Other independent producers are also showing strong results; Seplat Energy Plc reported a 4 percent production increase to 139,509 boepd, while Aradel Holdings Plc announced a remarkable 523 percent jump to 139.5 kboepd.
Looking ahead to the rest of 2026, Oando is focused on completing its seven-well drilling program—two of which are already finished—and executing roughly 100 rig-less well interventions. The company aims to sustain a production target of 40,000 to 50,000 boepd for the full year.
Beyond 2026, the company has a clear roadmap. With 62 identified development wells and 55 planned interventions, Oando is moving steadily toward its medium-term goal of 100,000 boepd. The company is also planning extensive financial restructuring, including a Rights Issue and a US$1.5 billion multi-instrument funding program, to accelerate growth, enhance clean energy initiatives, and maximize shareholder value.
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