Oando sees revenue increase to ₦2.78 trillion as production rises by 14% in September 2026

Oando Plc, a top energy company in Africa, has shared its unaudited results for the nine months that ended on 30 September 2026. The Group saw a nine percent rise in revenue to ₦2.78 trillion. This growth is due to higher crude oil liftings, more sales of gas and Natural Gas Liquids (NGL), and better average prices. The operating performance also improved, going from an operating loss of ₦109.7 billion in 9M 2025 to an operating profit of ₦159.7 billion in 9M 2026.

Gross profit jumped by 483% to ₦174.5 billion, compared to ₦29.8 billion in the same period of 2025. This improvement came from better production efficiency, with a reported facility uptime of 96.1% compared to 85% last year.

Wale Tinubu, Group Chief Executive of Oando PLC, commented on the results: “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. Production averaged 42,985 boepd, up 14% year-on-year, while facility uptime improved to 96.1% and production operating costs declined by 22% to US$15.39 per boe. These gains were achieved with zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked.”

Average daily production from the Group’s upstream subsidiary grew from 37,614 boepd in 2025 to 42,985 boepd in 2026. This growth happened across crude oil, gas, and NGLs. Crude oil production went up by 12% to 12,193 barrels per day, gas production rose by 13% to 28,689 boepd, and NGL production increased by 53% to 2,103 barrels per day in 2026.

Crude oil liftings increased by 43% to 3.97 million barrels, while natural gas sales went up five percent to 34.01 billion standard cubic feet. NGL sales grew by 90% to 0.57 million barrels. Overall, E&P sales volumes rose by 21% to 10.21 million barrels of oil equivalent.

The operational improvements added to the performance. Production operating costs reduced by 22% to US$15.39/boe. This reflects cost cuts in transport, logistics, services, and information technology. Higher production also came with a mostly fixed cost base. Oando had zero fatalities and zero lost-time injuries over about 14.9 million hours worked, which is a 55% increase in total hours from the same period in 2025. The better facility uptime also improved the reliability of production and evacuation systems.

Total borrowings dropped to ₦2.16 trillion, which is 22% lower than the peak at the end of 2024. Cash generated from operations hit ₦285 billion. The Group invested ₦110.7 billion in capital projects, mainly for drilling across OMLs 60, 63.

The Group’s seven-well drilling program for 2026 is moving forward. Idu 6ST and Idu 15 have been completed and started producing. Workovers at Samabri 4T and Samabri 7T are done. Drilling is ongoing at Idu T and Samabri A50, with the last well, Ogbainbiri, set to start in December 2026.

When finished, the drilling campaign is expected to add about 16,000 to 20,000 boepd (gross) of production. This will help maintain output and balance natural field decline in the operated portfolio. It will also support the goal of reaching about 100,000 boepd in the next four to five years.

In clean energy, electric buses from Oando’s partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) recorded over 212,000 passenger journeys in the first nine months of 2026. The average capacity usage was 73%. An extra 11 electric buses have arrived in Lagos, making the total fleet 13. The new buses are expected to start service in the fourth quarter, with LAMATA managing the operation for Lagos State.

As Oando enters the last quarter of 2026, the focus is on completing the drilling program, maintaining performance, and improving capital management. The Group has set its full-year production guidance to 40,000, 45,000 boepd and expects full-year capital spending of around US$90 million to US$100 million on high-impact, short-term projects.

Tinubu shared his outlook: “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. These initiatives are intended to reduce leverage, enhance our capacity to fund growth and support future shareholder distributions. We have demonstrated what we can achieve across our strategic assets and are confident in the opportunities ahead. Our commitment remains to realise the full potential of our substantial resource base and deliver lasting value for our shareholders.”

With production growth, better operational efficiency, and a stronger cash flow position, Oando aims to keep its momentum going, push forward with its drilling program, and improve its financial standing for long-term growth and value for shareholders.