• Daily output increases 16%, facility uptime reaches 92%
•Oil firm ramps up cost-optimisation initiatives
•Wale Tinubu: We have established clear roadmap for growth
Emmanuel Addeh in Abuja
Oando Plc has reported a 20 per cent increase in revenue to N2.1 trillion for the first half of 2026, driven by higher hydrocarbon production, improved operational efficiency and sustained cost optimisation initiatives.
The company’s unaudited results for the six months ended June 30, 2026 released yesterday also showed that Profit After Tax (PAT) rose 8 per cent to N68.6 billion, while gross profit surged 331 per cent to N101 billion.
Overall, the company attributed the improved financial performance to lower transport, logistics, service and ICT costs, alongside higher production across a largely fixed field cost base.
Operationally, Oando’s upstream subsidiary recorded a facility uptime of 92 per cent during the period, compared with 85 per cent in the corresponding period of 2025, resulting in a 16 per cent increase in average production to 42,789 barrels of oil equivalent per day (boepd), from 36,836 boepd.
The production comprised crude oil output of 12,358 barrels per day, up 19 per cent; gas production of 28,497 boepd, representing a 14 per cent increase; and natural gas liquids production of 1,935 boepd, a 16 per cent rise.
According to the company, the improved production performance was driven by the successful drilling of new wells, the restoration of 12 previously shut-in wells and sustained improvements in facility uptime across OMLs 60, 61, 62 and 63.
Besides, its trading business recorded a 2.1 per cent increase in crude trading volumes to 13.15 million barrels, supported by its crude oil marketing and offtake programmes as well as increased sourcing from marginal field producers.
Commenting on the performance, Group Chief Executive of Oando, Wale Tinubu, said the first half of the year represented a major milestone in the company’s transformation, describing it as an inflection point.
“The first half of 2026 marks an important inflection point in Oando’s journey. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” he said.
Tinubu noted that operational efficiency remained the cornerstone of the company’s performance, with strengthened asset integrity, improved facility reliability and enhanced security helping to reduce production operating costs by 18 per cent to $16.83 per barrel of oil equivalent.
He added that the company’s drilling and well intervention programme had gained momentum, with two development wells completed, another currently being drilled and a second drilling rig mobilised to accelerate activities across its operated assets.
“The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation. Operational efficiency underpinned our performance during the period as we strengthened asset integrity, improved facility reliability and reinforced security across our operating areas, resulting in average facility uptime of 92 per cent while reducing production operating costs by 18 per cent to $16.83 per boe.
“Our development programme also gathered significant momentum during the period as we successfully drilled and completed two land development wells, with an additional land well currently being drilled, while mobilising a second drilling rig to accelerate activity across our operated portfolio.
“In parallel, we continued an extensive programme of rig-less well interventions designed to restore production, sustain plateau output and mitigate natural field decline. Together, these activities increased average production to 42,789 boepd, representing 16 per cent year-on-year growth.
“This translated into a stronger financial performance, with revenue increasing by 20 per cent to N2.1 trillion, while the business generated N179.5 billion in operating cash, improving liquidity. Profit after tax also increased by 8 per cent to N68.6 billion, reflecting the overall improvement in operating performance during the period,” he stated.
Tinubu said the company had embarked on an extensive drilling programme across both its operated and non-operated assets, with early results already evident in OMLs 60 to 63.
He noted that Oando intends to complete its seven-well drilling campaign across Idu T, Samabri A and Ogbanbiri, while executing about 100 rig-less well intervention activities across its portfolio this year to sustain production and mitigate natural field decline.
He added: “Looking ahead in 2026, our priorities remain firmly centred on completing our seven-well drilling programme and portfolio-wide well intervention campaign while delivering production of circa 50,000 boepd. Beyond 2026, our identified inventory of 62 development wells, supported by 55 planned well interventions, provides a clear pathway towards our medium-term production ambition of approximately 100,000 boepd.
“Furthermore, we shall execute an intensive fundraising and balance sheet restructuring programme to optimise our capital structure, strengthen our financial position, improve working capital, enhance financial flexibility and ensure the business is appropriately funded to accelerate growth and maximise long-term shareholder value. We have built a resilient operating platform and established a clear roadmap for growth.”
Tinubu pointed out that Oando’s focus is now on translating its significant opportunities into higher production, a stronger balance sheet and superior long-term returns for its shareholders.
The company reaffirmed its full-year production guidance of between 40,000 and 50,000 boepd, supported by its seven-well drilling programme across OMLs 60 to 63, of which two wells have been completed and two are currently in progress.
Oando also revised the guidance for its trading business to between 22 million and 26 million barrels following adjustments to its crude oil marketing programme, while stating that it continues to advance its Rights Issue, its planned $1.5 billion multi-instrument capital raising programme and the expansion of its clean energy initiatives.