Oando Plc recorded a loss before tax of N32.84bn in the first half of 2026, despite a significant improvement in revenue, gross profit and oil production.

The company’s unaudited financial results for the six months ended June 30, 2026, showed that revenue increased by 20 per cent to N2.06tn, compared with N1.72tn in the same period last year.

The stronger turnover helped gross profit rise substantially to N101.19bn from N23.48bn in H1 2025. Oando also reported an operating profit of N127.84bn, a major turnaround from the N158.71bn operating loss recorded a year earlier.

However, the improvement at the operational level was outweighed by the company’s financing burden. Net finance expenses climbed to N161.30bn during the period, largely due to finance costs of N167.58bn.

Finance income also fell sharply from N158.99bn in the corresponding period of 2025 to N6.28bn, further worsening the impact of the group’s debt obligations on its bottom line.

Despite the pre-tax loss, Oando ended the period with a net profit of N68.56bn, representing an eight per cent increase from the N63.31bn reported in H1 2025. The profit was significantly supported by a N101.40bn tax credit.

The company’s operational performance was strengthened by its expansion in the upstream oil and gas sector following its $783m acquisition of Nigerian Agip Oil Company from Eni.

The transaction increased Oando’s participating interests in OMLs 60, 61, 62 and 63 to 40 per cent and expanded its portfolio to include 24 producing fields, pipeline infrastructure and gas processing facilities.

As a result, average daily production rose 16 per cent year-on-year to 42,789 barrels of oil equivalent per day during the first six months of 2026.

Despite the growth in production and operating earnings, the company continues to face substantial balance-sheet pressure. Oando’s total liabilities stood at N8.42tn, while its net equity remained negative at N530.45bn.

Auditors have previously raised concerns about the company’s financial structure, noting that its long-term stability would depend on successful efforts to restructure its debt, raise additional capital and deliver projected revenues.

Oando said it would continue to focus on optimising its core assets, adjusting its portfolio, carrying out well-intervention programmes and maintaining disciplined capital spending.

According to management, the measures are intended to improve cash flow, reduce debt exposure and strengthen the company’s working capital position.