Oando’s output rises as financing costs pull nine-month profit lower

Monday 2nd November 2026

By inAfrika Newsroom

Oando’s production increased in the first nine months of 2026, but the improvement did not translate into higher profit after tax. Its unaudited results show the different effects of operating performance, financing costs and tax accounting on an African energy company’s earnings.

Les company’s 30 October results release reports average production of 42,985 barrels of oil equivalent per day, up 14% year on year. Revenue rose 9% to NGN 2.776 trillion, while operating profit reached NGN 159.7 billion against an operating loss of NGN 109.7 billion a year earlier.

Profit after tax nevertheless fell 47% to NGN 106.5 billion from NGN 201.3 billion. Net finance costs of NGN 235.2 billion replaced net finance income of NGN 128.0 billion in the comparative period, which had benefited from substantial non-recurring income.

The accounts also include an income-tax credit of NGN 181.1 billion. Such a credit affects reported profit, but it should not be read as revenue earned from selling additional oil or gas.

Total borrowings fell to NGN 2.16 trillion, around 20% below the end-2025 level. Net cash generated from operating activities was NGN 217.8 billion. This differs from the NGN 285.0 billion cash-generated-from-operations measure; the cash-flow reconciliation also reflects working-capital movements, interest and tax.

These distinctions matter when assessing an energy business’s capacity to keep investing. Higher output can improve the operating base, while debt service still absorbs cash that might otherwise fund drilling, maintenance or other commitments.

A barrel of oil equivalent is also an energy-based reporting unit. The production total combines hydrocarbons and should not be treated as a count of crude-oil barrels alone.

The wider African energy-financing debate therefore needs to consider funding costs alongside project activity. Oando’s figures illustrate why operating profit, profit after tax and cash flow answer different questions, even within the same reporting period.

The next accounts will show how year-end operations and capital-management measures affect those relationships. The September figures establish what the company reported for nine months, rather than guaranteeing its full-year outcome.

Have a verified news development or story? Send news submissions and supporting materials to news@inafrika.co.tz