Oando Plc reported a profit after tax of N68.56 billion for the first half (H1) of 2026 as higher revenue and improved operating performance strengthened the energy company’s earnings.
According to its unaudited interim consolidated financial statements for the six months ended June 30, 2026, profit after tax increased by 8.3 percent from N63.31 billion recorded in the corresponding period of 2025.
Revenue from contracts with customers rose by 19.9 percent to N2.06 trillion, compared with N1.72 trillion in the first half of 2025.
Cost of sales increased to N1.96 trillion from N1.70 trillion, but revenue growth enabled Oando to report a gross profit of N101.19 billion, more than four times the N23.48 billion recorded a year earlier.
The improvement was also reflected in the company’s operating performance, with Oando recording an operating profit of N127.84 billion, reversing an operating loss of N158.71 billion in the corresponding period of 2025.
Other operating income stood at N48.52 billion, compared with an operating loss of N298.29 billion in the prior-year period, while the reversal of impairment on financial assets contributed another N55.92 billion.
Administrative expenses moderated to N77.79 billion from N81.42 billion.
However, financing costs remained a major drag on the company’s earnings. Finance costs amounted to N167.58 billion, although this was lower than the N194.12 billion reported in H1 2025.
Finance income fell sharply to N6.28 billion from N158.99 billion, resulting in a net finance cost of N161.30 billion, compared with net finance income of N12.97 billion a year earlier.
Consequently, Oando recorded a loss before income tax of N32.84 billion, an improvement from the N145.74 billion pre-tax loss reported in the first half of 2025.
The company subsequently recognised an income tax credit of N101.40 billion, which lifted its bottom line to a net profit of N68.56 billion for the period.
Profit attributable to equity holders of the parent increased to N70.77 billion from N64.17 billion, while non-controlling interests recorded a loss of N2.21 billion.
Basic and diluted earnings per share rose to N8 from N5 in the corresponding period.
Oando’s second-quarter performance also showed a substantial turnaround. Revenue for the three months ended June 30 increased to N1.07 trillion from N788.22 billion, while gross profit stood at N70.75 billion compared with a gross loss of N42.31 billion in Q2 2025.
Operating profit for the quarter reached N130.64 billion, reversing the N38.37 billion operating loss recorded a year earlier.
The company consequently posted a Q2 profit after tax of N31.10 billion, compared with a loss of N49.74 billion in the same quarter of 2025.
Total comprehensive income for the six-month period stood at N36.52 billion, down from N55.09 billion in H1 2025, after Oando recorded N32.03 billion in other comprehensive losses, largely reflecting exchange differences from the translation of foreign operations.
Overall, the first-half results show a significant recovery in Oando’s underlying operations with stronger revenue, gross profit and operating earnings.
However, elevated financing costs remained a significant constraint on pre-tax profitability, while the company’s N101.40 billion income tax credit ultimately enabled it to close the period with a higher net profit.
