Energy company Oando Plc recorded a loss before tax of N32.84 billion in the first half of 2026, as high interest expenses and rising debt obligations continued to put pressure on the company’s finances.
The result covers the six months ended June 30, 2026, and was contained in the company’s unaudited financial statements filed with the Nigerian Exchange Limited (NGX).
Despite the loss at the pre-tax level, Oando recorded a strong improvement in its core operations during the period. Revenue increased by about 20 per cent to N2.06 trillion, compared with N1.72 trillion recorded in the same period of 2025.
The company also achieved a significant improvement in gross profit. Gross profit rose to N101.19 billion, compared with just N23.48 billion in the corresponding period last year.
Oando’s operating performance also improved considerably. The company reported an operating profit of N127.84 billion, reversing the N158.71 billion operating loss recorded in the first half of 2025.
The improvement was supported by higher operating income and efforts to control administrative expenses.
However, the company’s strong operational performance was largely affected by its financing burden. Net finance expenses climbed to N161.30 billion during the period, with finance costs reaching N167.58 billion.
At the same time, finance income dropped sharply to N6.28 billion from N158.99 billion a year earlier.
Oando’s management said the performance of its core assets and operational cash flows had improved significantly, but high interest expenses continued to absorb a large portion of the company’s operating profit.
Despite the pre-tax loss, Oando ended the six-month period with a net profit of N68.56 billion, representing an 8 per cent increase from N63.31 billion recorded in H1 2025.
The bottom-line improvement was largely supported by a N101.40 billion tax credit.
The results come after Oando significantly expanded its upstream operations through the acquisition of the Nigerian Agip Oil Company from Italian energy company Eni for $783 million.
The acquisition increased Oando’s participating interests in Oil Mining Leases 60, 61, 62 and 63 to 40 per cent. It also added producing oil fields, pipelines and gas-processing facilities to the company’s portfolio.
As a result, Oando’s average daily production increased by 16 per cent year-on-year to 42,789 barrels of oil equivalent per day in H1 2026.
However, the company’s enlarged operations have also come with considerable financial pressure. Total liabilities stood at N8.42 trillion, while shareholders’ equity remained negative at about N530.45 billion.
Auditors have previously raised concerns about Oando’s capital structure, noting that reducing its debt burden would depend on successful capital-raising efforts and the company meeting its revenue expectations.
Looking ahead, Oando said it would continue to focus on improving the performance of its core assets. Management plans to optimise its portfolio, carry out well-intervention programmes and maintain disciplined capital spending.
The company believes these measures will help improve cash flow, reduce debt exposure and strengthen its financial position over time.
