Oando Plc has reduced its production operating costs by 22 per cent and returned to operating profitability, posting ₦159.7 billion operating profit in the first nine months of 2026, against a loss of ₦109.7 billion recorded in the corresponding period of 2025.
The improvement came as the indigenous energy company increased average daily production by 14 per cent to 42,985 barrels of oil equivalent per day (boepd), supported by higher crude oil, natural gas and natural gas liquids output.
The company’s unaudited financial results for the nine months ended September 30, 2026, showed that revenue rose by nine per cent to ₦2.78 trillion, while gross profit surged by 483 per cent to ₦174.5 billion from ₦29.8 billion in the previous year’s corresponding period.
Oando attributed the improved performance to increased crude oil liftings, higher gas and natural gas liquids sales, improved realised prices and greater operational efficiency.
Facility uptime also improved from 85 per cent to 96.1 per cent, indicating increased reliability across its production infrastructure.
Commenting on the performance, Group Chief Executive of Oando Plc, Wale Tinubu, said the results reflected improved execution under the company’s operatorship and renewed investment in its upstream assets.
“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.
Production operating costs declined by 22 per cent to $15.39 per barrel of oil equivalent, reflecting cost reductions in transportation, logistics, services and information and communications technology, alongside increased output.
The company reported that crude oil production increased by 12 per cent to 12,193 barrels per day, while gas production rose by 13 per cent to 28,689 boepd. Natural gas liquids production recorded the highest growth, increasing by 53 per cent to 2,103 barrels per day.
Crude oil liftings also rose by 43 per cent to 3.97 million barrels, while natural gas sales increased by five per cent to 34.01 billion standard cubic feet. NGL sales surged by 90 per cent to 570,000 barrels, contributing to a 21 per cent increase in total exploration and production sales volumes to 10.21 million barrels of oil equivalent.
On financial management, Oando said total borrowings had declined to ₦2.16 trillion, representing a 22 per cent reduction from the peak recorded at the end of 2024. Cash generated from operations stood at ₦285 billion, while capital expenditure during the nine-month period amounted to ₦110.7 billion, largely directed towards drilling activities across Oil Mining Leases 60–63.
The company also disclosed progress on its seven-well drilling programme for 2026, reporting that Idu 6ST and Idu 15 had been completed and brought on stream, while workovers on Samabri 4T and Samabri 7T had also been concluded.
Drilling was ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to commence in December.
According to the company, the completed drilling programme is expected to contribute between 16,000 and 20,000 boepd in gross production, helping to sustain output and offset natural declines across its operated assets.
The development programme forms part of Oando’s medium-term ambition to achieve production of approximately 100,000 boepd within the next four to five years.
Beyond its upstream operations, the company reported increased activity in its electric mobility business through its partnership with the Lagos Metropolitan Area Transport Authority (LAMATA).
It said electric buses deployed under the partnership recorded more than 212,000 passenger journeys between January and September 2026, with average capacity utilisation of 73 per cent.
An additional 11 electric buses, representing the first batch of a planned 50, had arrived in Lagos, bringing the fleet to 13. The expanded fleet is expected to commence operations in the fourth quarter, with LAMATA operating the buses on behalf of the Lagos State Government.
For the final quarter of the year, Oando said it had narrowed its full-year production guidance to between 40,000 and 45,000 boepd and projected capital expenditure of $90 million to $100 million, with investments concentrated on high-impact, short-cycle upstream projects.
Tinubu said the company’s immediate priorities included completing its drilling programme, maintaining operational reliability and strengthening shareholders’ funds through a planned equity raise.
He said the proposed capital-raising exercise was expected to reduce leverage, improve the company’s capacity to finance expansion and support future shareholder distributions.
The company also reported zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked during the review period, representing a 55 per cent increase in total hours worked compared with the corresponding period of 2025.
Oando said its focus remained on sustaining production growth, improving operational efficiency and strengthening its financial position to support expansion across its energy portfolio.
