In Nigeria, oil and gas group Oando reported a 47% decline in net profit to ₦106.5 billion for the first nine months of 2026, even as revenue rose 9% to ₦2,776.1 billion. Unaudited results released on 30 October showed that stronger operations had not fully offset the financing costs associated with the company’s acquisitions.
The recovery in operating performance was substantial. From January to September, Oando moved from an operating loss of ₦109.7 billion a year earlier to an operating profit of ₦159.7 billion. Net finance costs of ₦235.23 billion, however, contributed to a pre-tax loss of ₦74.65 billion, compared with a pre-tax profit of ₦19.46 billion in the same period of 2025.
An income tax credit of ₦181.1 billion helped the group remain profitable after tax, according to its financial statements. That accounting effect explains the positive bottom line despite the pre-tax loss, although net earnings still fell sharply from the ₦201.3 billion recorded in the first nine months of last year.
Higher output, with debt still weighing on earnings
Average oil and gas production increased 14% to 42,985 barrels of oil equivalent per day. Oando also reduced unit production costs by 22% to $15.39 per barrel of oil equivalent, while facility uptime improved to 96.1% from 85% a year earlier.
Higher upstream volumes and gas deliveries supported revenue growth. Meanwhile, the company invested ₦110.7 billion, primarily in drilling across oil mining leases 60 to 63. Total borrowings have declined by about 20% since the end of 2025 to ₦2.16 trillion, and management plans further debt reduction to ease the financing burden on earnings.
For the remainder of 2026, Oando aims to advance its seven-well development programme and is preparing an equity raise to strengthen its capital base. The group narrowed its full-year production guidance to 40,000–45,000 barrels of oil equivalent per day.