Tax Loss Amid Surging Finance Costs
Energy firm Oando Plc reported an 8% increase in net profit for the first half of 2026, largely driven by a significant tax credit. Despite strong operational revenue growth, the company continues to struggle with high debt-servicing costs and net finance expenses.
Why it matters
The report highlights the volatility of the energy sector in Nigeria, where operational gains are frequently offset by macroeconomic pressures and heavy debt burdens.
Energy giant Oando Plc has delivered an eight per cent growth in net profit to N68.56bn for the half-year ended 30 June 2026, successfully navigating a steep N32.84bn pre-tax loss through a massive tax credit and a robust core operational recovery. The group’s unaudited interim financial statements submitted to the Nigerian Exchange Limited, endorsed by Group Chief Executive Jubril Tinubu and Group Chief Financial Officer Adeola Ogunsemi, show that Oando’s bottom line, which stood at N63.31bn in H1 2025, was heavily buoyed by a tax credit of N101.40bn. This tax relief cushioned the impact of massive debt-servicing obligations on the energy firm’s balance sheet. Operationally, the company demonstrated strong top-line momentum. Revenue expanded 20 per cent to N2.06tn from N1.72tn in the corresponding period of 2025. Despite cost of sales increasing from N1.70tn to N1.96tn, gross profit surged to N101.19bn, up significantly from N23.48bn in H1 2025.
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