Oando reports 9% revenue growth to N2.78trn as production rises 14% in nine months of 2026
Oando has published its unaudited results for the nine months ended 30 September 2026 with the Group reporting a nine per cent increase in revenue to N2.78 trillion, reflecting higher crude oil liftings, increased gas and Natural Gas Liquids (NGL) sale volumes, and improved average realised prices.
Operating performance also strengthened, with the Group moving from an operating loss of N109.7 billion in 9M 2025 to an operating profit of N159.7 billion in nine months of 2026.
Gross profit increased by 483per cent to N174.5 billion, compared with N29.8 billion in the corresponding period of 2025, reflecting improved production efficiency with a reported facility uptime of 96.1% compared to 85per cent.
Commenting on the results, Group Chief Executive of Oando, Wale Tinubu said: “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 14per cent year-on-year, while facility uptime improved to 96.1% and production operating costs declined by 22per cent 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 of the Group’s upstream subsidiary increased from 37,614 boepd in 2025 to 42,985 boepd in 2026, with growth across crude oil, gas and NGLs. Crude oil production rose 12% to 12,193 barrels per day, gas production increased 13% to 28,689 boepd, and NGL production grew 53% to 2,103 barrels per day in 2026.
Crude oil liftings rose 43per cent to 3.97 MMbbl, while natural gas sales rose five per cent to 34.01 billion standard cubic feet (Bscf). NGL sales increased by 90peer cent to 0.57 million barrels. In total, E&P sales volumes rose by 21per cent to 10.21 million barrels of oil equivalent (MMboe).
Operational improvements further strengthened performance. Production operating costs declined by 22% to US$15.39/boe, reflecting cost optimisation across transport, logistics, services, and information and communications technology, alongside higher production across a largely fixed field cost base. Oando recorded zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked during the period, an increase of 55per cent in total hours worked from the corresponding period of 2025. Its improved facility uptime also strengthened the reliability of production and evacuation infrastructure, supporting the Group’s capacity to handle additional volumes as its development programme progresses.
Total borrowings declined to N2.16 trillion, 22% below the peak recorded at the end of 2024, while cash generated from operations reached N285 billion. The Group also invested N110.7 billion in capital expenditure, primarily directed towards drilling across OMLs 60–63.
The Group’s seven-well drilling programme for 2026 has progressed across its operated assets. Idu 6ST and Idu 15 have been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T have been completed. Drilling is ongoing at Idu T and Samabri A50, with the final well, Ogbainbiri, scheduled to spud in December 2026.
On completion, the drilling campaign is expected to add approximately 16,000 to 20,000 boepd (gross) of production, helping to sustain output and offset natural field decline across the operated portfolio and support its medium-term ambition of approximately 100,000 boepd in the next four to five years.
In clean energy, electric buses deployed through Oando’s electric mobility partnership with the Lagos Metropolitan Area Transport Authority (LAMATA) recorded more than 212,000 passenger journeys in the first nine months of 2026, with average capacity utilisation of 73per cent. An additional 11 electric buses – the first batch of a planned 50 – arrived in Lagos, bringing the fleet to 13. The expanded fleet is expected to enter service in the fourth quarter, with LAMATA operating the buses on behalf of Lagos State.
Oando enters the final quarter of 2026 focused on completing its drilling programme, sustaining operational performance and advancing its capital management initiatives. The Group has narrowed its full-year production guidance to 40,000–45,000 boepd and expects full-year capital expenditure of approximately US$90 million to US$100 million, focused on high-impact, short-cycle upstream activities.
Commenting on the Company’s outlook, Mr Tinubu said: “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, improved operational efficiency and a stronger cash flow position, Oando is focused on sustaining its operational momentum, advancing its drilling programme, and strengthening its financial position to support long-term growth and shareholder value.
