Oando Plc moved from a pre-tax profit to a pre-tax loss in the nine months to September 30, 2026, as elevated net finance costs overwhelmed a sharp recovery in operating earnings. The energy group reported a pre-tax loss of N74.65 billion, against a pre-tax profit of N19.46 billion in the same period of 2025, according to unaudited consolidated financial statements filed with the Nigerian Exchange on Friday, October 30, 2026.
Revenue increased 9.23% to N2.78 trillion from N2.54 trillion, while gross profit jumped 484.73% to N174.53 billion from N29.85 billion. Operating profit reached N159.69 billion, reversing an operating loss of N109.73 billion a year earlier, helped by other operating income of N80.74 billion. The gross profit margin improved to 6.3% from 1.2%. Exploration and Production revenue grew 58.5% to N553.64 billion, while Supply and Trading revenue rose 1.4% to N2.22 trillion and remained roughly 80% of group sales.
The improvement at the operating level was, however, erased below that line. Net finance costs came to N235.23 billion, compared with net finance income of N128.01 billion in 9M 2025. Gross finance costs declined to N244.20 billion from N288.79 billion, with bank interest accounting for N218.58 billion, but finance income fell sharply to N8.98 billion from N368.69 billion. Administrative expenses also rose 21.1% to N157.91 billion from N130.41 billion, including approximately N79 billion in professional fees.
A large income tax credit of N181.10 billion kept the company in positive territory after tax. The credit included N254.40 billion in reversals of previously recognised tax provisions. Profit after tax stood at N106.45 billion, down 47.12% from N201.31 billion, while earnings per share declined 28.66% to N11.70 from N16.40.
Group Chief Executive Wale Tinubu attributed the operating recovery to higher production, stronger facility reliability and lower operating costs. Average daily production rose 14% to 42,985 barrels of oil equivalent per day, facility uptime improved to 96.1% from 85%, and production operating costs fell 22% to $15.39 per barrel of oil equivalent. The company expects its seven-well drilling programme to add about 16,000 to 20,000 barrels of oil equivalent per day in gross production once completed and has narrowed full-year production guidance to 40,000–45,000 barrels per day.
On the balance sheet, total assets declined 32.3% to N5.04 trillion from N7.45 trillion at December 2025, partly reflecting the classification of assets linked to the planned disposal of the 95% stake in Oando Petroleum Development Company Limited as held for sale. Total borrowings fell 19.8% to N2.16 trillion from N2.70 trillion, while shareholders’ equity remained negative at N512.59 billion, improving from negative N566.97 billion. Cash and cash equivalents dropped 60% to N175.94 billion.
