Oando Plc returned to profitability in the second quarter of 2026 as it cut its first-half pre-tax loss by 77 per cent, supported by higher revenue and stronger operating performance despite continued pressure from finance costs.

The company, in its unaudited financial results for the six months ended June 30, 2026, reported a pre-tax loss of N32.84 billion, a sharp improvement from the N145.74 billion loss recorded in the corresponding period of 2025.

Oando recorded a pre-tax profit of N44.53 billion in the second quarter, reversing the N77.37 billion loss posted in the first quarter. It also marked a turnaround from the N93.18 billion pre-tax loss reported in the second quarter of last year.

Revenue for the half-year rose by 19.9 per cent to N2.06 trillion from N1.72 trillion, driven by stronger performance in its supply and trading as well as exploration and production businesses.

Gross profit increased more than fourfold to N101.19 billion from N23.48 billion, while the company posted an operating profit of N127.84 billion, compared with an operating loss of N158.71 billion in the first half of 2025.

Profit after tax rose by 8.3 per cent to N68.56 billion, while earnings per share increased to N8.00 from N5.00 a year earlier. Cash and cash equivalents also grew by 23.9 per cent to N544.92 billion, with total assets rising to N7.89 trillion.

The supply and trading business remained Oando’s largest revenue contributor, accounting for over 83 per cent of total external revenue. However, the segment continued to deliver relatively low operating margins despite its dominant share of sales.

The company also benefited from improved gross margins, higher other operating income and impairment reversals, which strengthened its operating performance during the period.

Despite these gains, finance costs continued to weigh on earnings. Although finance costs declined year-on-year, a sharp fall in finance income left the company with net finance costs that exceeded its operating profit, resulting in the half-year pre-tax loss.

On the balance sheet, Oando reported improved cash holdings and slightly stronger liquidity. However, current liabilities remained well above current assets, leaving the group with a working capital deficit of about N3.03 trillion.

Total borrowings remained broadly stable at N2.70 trillion as lower short-term debt was offset by higher long-term borrowings. The company also remained in a negative equity position, with liabilities exceeding assets by N530.45 billion.

Oando’s shares closed at N36.60 at the end of July, representing declines of 8.39 per cent for the month and 8.96 per cent since the beginning of the year.