Oando PLC announced its unaudited financial results for the six months ended June 30, Vanguardngr, reporting a 20 percent increase in revenue to N2.1 trillion. According to the company, the financial growth was driven by higher crude oil production, improved operational efficiency, and cost optimization following the integration of its expanded upstream portfolio.
Oando Reports N2.1 Trillion Half-Year Revenue on Increased Production
The company, which is listed on both the Nigerian Exchange Ltd. and Johannesburg Stock Exchange, recorded an eight percent increase in profit after tax to N68.6 billion, compared to N63.3 billion in the first half of 2025. Gross profit surged by 331 percent to N101 billion during the review period, supported by growth in the exploration and production segment and higher product prices.
Operational Efficiency and Production Growth
Oando delivered an average production of 42,789 barrels of oil equivalent per day (boepd), marking a 16 percent year-on-year growth. The performance was supported by the successful drilling of new wells, the restoration of 12 previously shut-in wells, and improved facility uptime across Oil Mining Leases (OMLs) 60 to 63.
Facility uptime improved to 92 percent in the first half of the year, up from approximately 85 percent in the corresponding period of 2025, with zero lost-time injuries recorded. Concurrently, production operating costs declined by 18 percent to $16.83 per barrel of oil equivalent, down from $20.62 per barrel in the first half of 2025. Group Chief Executive Officer Wale Tinubu described the period as an important inflection point, noting that the company’s priority over the past two years has been to integrate a significant upstream acquisition and unlock the value of its expanded assets.
Trading volumes also saw an increase, rising 2.1 percent to 13.15 million barrels from 12.88 million barrels, aided by expanded crude oil marketing and offtake programmes alongside increased sourcing from marginal field producers.
Cash Flow, Liquidity, and Capital Expenditure
The energy group generated N179.5 billion in cash from operations during the first half of Business News Nigeria, contrasting with N287.9 billion used in operating activities during the same period in the previous year. Capital expenditure increased to N81.4 billion from N48.3 billion, directed toward high-impact upstream drilling across OMLs 60 to 63 and the non-operated portfolio.
Oando reported closing cash and cash equivalents of N544.9 billion, a substantial increase from N194.2 billion in the first half of 2025. Additionally, the company restructured its corporate facility and medium-term loan, leaving both in good standing. During the period, Oando commenced a long-term gas supply of 11.2 million standard cubic feet per day to the newly commissioned 60 MW Bayelsa Independent Power Plant and executed a Production Sharing Contract for Block KON 13 in Angola, holding a 45 percent participating interest as operator.
Future Targets and Strategic Initiatives
Looking ahead, Oando remains on track to complete its seven-well drilling programme across OMLs 60 to 63, aiming for an average production of approximately 50,000 boepd for the full year 2026. The company has identified 62 development wells and 55 planned well interventions to support a medium-term production target of about 100,000 boepd.
To strengthen its financial position and support future growth, Tinubu disclosed plans for a fundraising and balance sheet restructuring programme, which includes advancing a 1.5-billion-dollar multi-instrument capital-raising Rights Issue alongside the expansion of clean energy initiatives.
