Prime Business Africa
Oando Plc reduced its post-tax loss in the first half (H1) of 2026 as the company’s revenue rose faster than the cost of sales and the firm cut other expenses.
According to Oando’s unaudited interim consolidated and separate interim financial statements for the six-month period ended June 30, 2026, analysed by Prime Business Africa (PBA), turnover increased by 19.92 percent year-on-year, from N1.72 trillion to N2.06 trillion.
Join our WhatsApp ChannelThe increase outstripped that of the cost of sales, which rose by 15.61 percent to N1.96 trillion during the period under review, compared to the N1.69 trillion incurred in the previous year’s H1.
As a result, the impact of cost of sales on revenue dropped, as the former gulped 95.09 percent of turnover in H1 2026, against the 98.63 percent recorded in H1 2025.
With revenue growth outstripping that of cost of sales, Oando’s gross profit surged by 331 percent to N101.18 billion, up from the N23.47 billion recorded between January and June last year.
The company also recovered from the N298.28 billion other operating loss recorded in H1 2025, as Oando posted N48.51 billion other operating income in the same period this year.
Oando cut down on administrative expenses, which gulped N77.78 billion in the first six months of 2026, below the N81.42 billion expended in H1 2025, indicating a 4.47 percent decrease.
Also, the oil producer rebounded with a N127.84 billion operating profit, recovering from the N158.71 billion operating loss suffered in the previous year’s first half.
However, finance cost dropped by 13.67 percent year-on-year, from N194.11 billion to N167.58 billion, while finance income nosedived by 96.05 percent to N6.28 billion, from N158.98 billion.
Consequently, the company’s earnings took a hit, as Oando failed to replicate the N12.96 billion net finance income recorded in H1 2025, after reporting N161.30 billion net finance cost in H1 2026.
Oando, however, offset this with a N621.51 million share of profit from its associate companies in the first half of this year, compared to the zero recorded in the corresponding period the year before.
This contributed to the company’s pretax loss dropping by 77.47 percent to N32.83 billion in the first six months of 2026, from the N145.74 billion loss before tax suffered in H1 2025.
After reducing its loss before tax by double digits, the oil producer saw a 51.50 percent decline in tax credit received, reporting N101.39 billion in H1 2026, below the N209.05 billion posted in the corresponding period last year.
Following the tax credit received, Oando recorded N68.55 billion post-tax profit during the period under review, exceeding the N63.31 billion reached between January and June 2025, reflecting an 8.28 percent growth.
Meanwhile, in 2025, Oando’s profit crashed by 96 percent, while cost of sales gulped 99 percent of revenue.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
