Oando posts N32bn pre-tax loss as finance costs surge

Nigerian energy company Oando PLC has reported a significant pre-tax loss of N32.84 billion for the half-year ended June 30, 2026, as elevated interest payments and heavy debt obligations counteracted a strong recovery in operational earnings. The company's top-line performance grew by 20%, with revenue reaching N2.06 trillion from N1.72 trillion in the same period last year.

Despite a rise in cost of sales from N1.70 trillion to N1.96 trillion, gross profit surged to N101.19 billion, up from N23.48 billion earlier. Oando delivered an operating profit of N127.84 billion, marking a complete turnaround from the N158.71 billion loss reported a year ago. However, substantial balance sheet leverage severely impacted net earnings before taxes, as finance expenses skyrocketed to N161.30 billion, driven by N167.58 billion in finance costs and a sharp decline in N6.28 billion finance income from H1 2025.

Group leadership acknowledged that "while core asset performance and operational cash flows have improved significantly, high interest expenses and net finance costs continue to absorb operating profit before taxation."