Oando Plc has released its H1 2026 unaudited results, reporting a pre-tax loss of N32.84 billion for the first half of 2026, representing a 77.47% reduction from the N145.74 billion pre-tax loss recorded in H1 2025.

The second-quarter performance was considerably stronger, with a pre-tax profit of N44.53 billion, compared with a pre-tax loss of N77.37 billion in Q1 2026 and a loss of N93.18 billion in Q2 2025.

However, the group’s margins remain thin, while net finance costs continued to exceed operating profit during the six-month period.

Key Highlights (H1 2026 vs. H1 2025)

  • Revenue: N2.06 trillion (Up 19.92% YoY from N1.72 trillion)
  • Gross profit: N101.19 billion (Up 331.00% YoY from N23.48 billion)
  • Operating profit: N127.84 billion (Compared with an operating loss of N158.71 billion).
  • Profit after tax: N68.56 billion (Up 8.28% YoY from N63.31 billion)
  • Earnings per share: N8.00 (Up 60.00% YoY from N5.00).
  • Cash and cash equivalents: N544.92 billion (Up 23.88% from N439.88 billion at December 2025).
  • Total assets: N7.89 trillion (Up 5.95% from N7.45 trillion at December 2025)
  • Total equity: Negative N530.45 billion (Compared with negative N566.97 billion at December 2025).

Driving the numbers

Oando’s revenue growth was driven by both its Supply and Trading and Exploration and Production businesses.

  • Supply and Trading remained the group’s dominant revenue source, generating N1.72 trillion, equivalent to 83.24% of external revenue.
  • Exploration and Production contributed N344.23 billion, representing 16.68% of group revenue.
  • However, the revenue concentration in Supply and Trading helps explain the group’s thin margins.

Despite generating more than four-fifths of external revenue, the segment recorded operating profit of only N8.82 billion; an operating margin of 0.51%.

This means the segment retained only about 51 kobo in operating profit for every N100 of external revenue generated.

Cost of sales

At the group level, the cost of sales increased by 15.61% to N1.96 trillion from N1.70 trillion. The increase was slower than revenue growth, allowing gross profit to rise to N101.19 billion.

  • Consequently, the gross profit margin improved to 4.90% from 1.36% in H1 2025.
  • The second quarter showed a more encouraging margin trend as Q2’s gross margin increased to 6.59%.
  • H1 2026 operating profit margin was even higher than gross profit margin, driven by other operating income and net impairment reversal.
  • Other operating income hit N48.52 billion, compared with other operating losses of N298.29 billion in H1 2025.
  • The company also recognised a net impairment reversal of N55.92 billion, although this was lower than the N197.52 billion recorded in the prior-year period.

Combined, other operating income and impairment reversals contributed N104.44 billion, equivalent to about 81.70% of reported operating profit.

This indicates that a substantial part of operating profit came from items outside the direct gross margin generated on customer revenue.

Finance costs

Finance costs remain the main pressure on group profitability, although they declined in H1 2026 compared to H1 2025.

  • The finance costs declined by 13.67% to N167.58 billion from N194.12 billion.
  • However, finance income fell sharply to N6.28 billion from N158.99 billion.
  • As a result, the group’s net finance position swung from net finance income of N12.97 billion to a net finance cost of N161.30 billion; which is 126.17% of operating profit. Indicating that Oando’s entire operating profit was absorbed before tax.

This pushed the group from operating profit of N127.84 billion to a pre-tax loss of N32.84 billion, although lower than the pre-tax loss of N145.741 billion recorded in H1 2025.

Balance sheet

The balance sheet size stood at N7.89 trillion and showed some improvement in short-term liquidity.

Cash and cash equivalents increased by 23.88% to N544.92 billion, while the current ratio improved to 0.54 times from 0.44 times.

Also, receivables rose faster than revenue; 23.85% versus 19.92%, suggesting that more of the group’s reported sales and other balances had not yet converted into cash.

With N2.71 trillion, or 34.33% of total assets, held in receivables and contract assets, Oando’s liquidity depends significantly on timely collection from customers and other counterparties.

However, current liabilities of N6.57 trillion remained substantially above current assets of N3.54 trillion, leaving the group with a working-capital deficit of approximately N3.03 trillion.

Oando’s debt profile improved, but the group did not materially deleverage. Current borrowings declined by N346.12 billion, while non-current borrowings increased by N352.39 billion. Consequently, total borrowings remained broadly unchanged at N2.70 trillion.

The group also remained in a negative-equity position. Total liabilities of N8.42 trillion exceeded total assets of N7.89 trillion, resulting in negative equity of N530.45 billion.

Market reaction

Oando’s share price closed July 2026 at N36.60, representing a month-to-date decline of 8.39% and a year-to-date decline of 8.96%.

The stock had closed May at N51.00, when it was up 26.87% year to date. It subsequently declined by 21.67% to N39.95 in June before falling by a further 8.39% in July.