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Oando Plc has reported a significantly improved financial performance for the first half of 2026, cutting its pre-tax loss by more than three-quarters as a robust second-quarter performance returned the energy group to profitability.
According to the company’s unaudited H1 2026 financial results, Oando recorded a pre-tax loss of N32.84 billion, representing a 77.5% improvement from the N145.74 billion loss posted during the corresponding period in 2025. The stronger performance was largely driven by a sharp turnaround in the second quarter, when the company delivered a pre-tax profit of N44.53 billion, reversing losses recorded in both the first quarter of 2026 and the second quarter of 2025.
Revenue Climbs Above N2 Trillion
The oil and gas firm’s revenue increased by 19.9% year-on-year to N2.06 trillion, up from N1.72 trillion recorded in the first half of 2025.
Growth was primarily supported by stronger contributions from the company’s Supply and Trading as well as Exploration and Production businesses. The Supply and Trading segment remained Oando’s largest revenue generator, contributing N1.72 trillion, or more than 83% of total external revenue, while the Exploration and Production division generated N344.23 billion, accounting for nearly 17% of group revenue.
Profitability Improves Despite Thin Margins
Although revenue expanded, the company continued to operate on relatively narrow margins due to the nature of its trading business.
Cost of sales rose to N1.96 trillion, reflecting higher business activity. However, revenue growth outpaced the increase in costs, allowing gross profit to surge 331% to N101.19 billion from N23.48 billion a year earlier.
As a result, the group’s gross profit margin improved to 4.9%, compared with 1.36% in the corresponding period of 2025. The second quarter showed even stronger momentum, with gross margin improving further to 6.59%.
Operating Performance Returns to Positive Territory
Oando’s operating performance recorded one of its most significant improvements during the reporting period.
The company posted an operating profit of N127.84 billion, a sharp turnaround from the operating loss of N158.71 billion reported in the first half of 2025.
The improvement was supported by stronger gross earnings, a reversal of impairment charges and other operating income of N48.52 billion, compared with substantial operating losses recorded under the same category a year earlier.
Finance Costs Continue to Pressure Earnings
Despite the stronger operational performance, finance costs remained a major challenge for the group.
Net finance expenses continued to exceed operating income during the six-month period, preventing Oando from posting an overall pre-tax profit for the half year.
Nevertheless, the return to profitability in the second quarter suggests that cost management efforts and operational improvements are beginning to strengthen the company’s earnings profile.
Bottom Line and Balance Sheet Strengthen
Oando’s profit after tax increased by 8.3% to N68.56 billion, compared with N63.31 billion in the same period last year, while earnings per share climbed 60% to N8.00 from N5.00.
The company’s financial position also improved, with cash and cash equivalents rising to N544.92 billion, representing a 23.9% increase from the end of 2025.
Meanwhile, total assets expanded to N7.89 trillion, up nearly 6%, while shareholders’ equity, though still negative, improved from negative N566.97 billion at the end of December 2025 to negative N530.45 billion.
Recovery Signals Stronger Outlook
The latest results indicate that Oando is making measurable progress in stabilising its financial performance following a difficult 2025.
While elevated finance costs and thin operating margins remain areas of concern, the company’s return to quarterly profitability, stronger operating income and improved cash position point to a business gradually regaining momentum.
Industry observers say sustaining operational efficiency, strengthening profitability across business segments and reducing financing costs will be critical if Oando is to translate its improving performance into consistent long-term earnings growth.
With energy demand remaining resilient and upstream operations contributing more significantly to earnings, investors will be watching closely to see whether the company can maintain its recovery trajectory in the second half of 2026.
