Oando Plc has unveiled plans to raise up to $1.5 billion through a multi-instrument issuance programme as the indigenous energy company seeks to ease a ₦2.16 trillion net debt burden despite reporting stronger earnings for the first half of 2026.
The company, in its unaudited H1 2026 financial results, said total borrowings remained broadly unchanged at ₦2.70 trillion as of June 30, 2026, while net debt stood at ₦2.16 trillion, reflecting improved liquidity after cash and cash equivalents rose to ₦544.9 billion.
Oando said it is advancing a $1.5 billion multi-instrument issuance programme, having received feedback from the Securities and Exchange Commission (SEC), with documentation being updated for resubmission in the third quarter of 2026.
The company is also progressing with a ₦200 billion rights issue, for which applications have been submitted to both the SEC and the Nigerian Exchange Limited (NGX), while majority shareholders have reaffirmed their commitment to support the offering.
According to the company, the fundraising initiatives are expected to reduce leverage, extend debt maturities and lower annual interest costs by replacing part of its debt with equity capital.
The financing push comes as interest expenses continue to weigh heavily on the group’s cash flow. Oando disclosed that it paid ₦98.9 billion in interest during the first half of the year, equivalent to 55 percent of cash generated from operations, highlighting the need to reduce debt servicing costs and improve financial flexibility.
Despite the debt burden, the company returned a stronger financial performance during the six-month period, driven by higher production, improved operational efficiency and stronger commodity prices.
Revenue rose 20 percent year-on-year to ₦2.06 trillion, while profit after tax increased 8 percent to ₦68.6 billion. Gross profit surged 331 percent to ₦101 billion, while the company swung from an operating loss of ₦158.7 billion in the corresponding period of 2025 to an operating profit of ₦127.8 billion.
Operationally, average production increased 16 percent year-on-year to 42,789 barrels of oil equivalent per day (boepd), supported by new wells, restoration of previously shut-in wells and improved facility reliability.
Production operating costs declined 18 percent to $16.83 per barrel of oil equivalent, while facility uptime improved to 92 percent from about 85 percent a year earlier.
Commenting on the results, Group Chief Executive Wale Tinubu said the company had reached an important stage in integrating its expanded upstream asset base and was now focused on translating operational gains into stronger shareholder returns.
He said the company’s priorities for the second half of the year include completing its seven-well drilling programme, strengthening the balance sheet through the ongoing capital raising and accelerating production towards its medium-term target of about 100,000 boepd.
Management also disclosed that its Corporate Facility and Medium-Term Loan had been successfully restructured, with all outstanding principal and interest arrears settled, restoring both facilities to good standing.
The company said it expects the combined effect of the rights issue and the proposed $1.5 billion issuance programme to improve liquidity, lower financing costs and position the business for sustained growth while enhancing long-term shareholder value.
