The board of Nigerian energy giant- Oando Plc, on Friday presented its unaudited financials for the half-year ended June 30, 2026, showing that it may not be out of the woods year, especially with figures pointing to total liabilities that outstriped total assets by N530.448 billion (balance sheet insolvency), compared to the previous N566.927bn.
According to the result presented through the Nigerian Exchange, revenue for the period improved by N342.713bn from N1.720tr to N2.063tr; cost of sales rose to N1.962tr from N1.697tr; resulting in gross profit of N101.189bn, compared to the previous half-year’s N23.477bn.
Other operating income stood at N48.519bn, from the previous N298.296bn loss; reversal of impairment fell to N55.919bn from N197.522bn; administrative expenses dropped marginally to N77.787bn from N81.424bn. Operating profit, therefore, improved to N127.84bn from a the prior half-year’s N158.711bn loss.
Finance cost amounted to N167.584bn, down from N194.118bn; there was no reversal of prior default interest, against the previous N48.101bn; finance income fell from N158.986bn to N6.282bn; resulting in a net finance cost of N161.301bn from the previous N12.969bn income.
Loss before tax for the period dropped to N32.839bn from N145.741bn; following which an income tax credit of N101.395bn, more than half the N209.054bn corresponding period of last year left profit after tax at N68.556bn from N63.312bn.
Investdata News recalls that insolvency remains a regular feature of Oando Plc since the 2019 audited financials submitted in 2022, when the external auditor firm- E&Y, reported that Oando Plc’s current liabilities exceeded current assets by N432.8bn, up from N318.5bn in 2018.
Accordingly, the auditors say Oando Plc “continues to incur losses and reversal of this is dependent on successful actions to raise capital to pay down the significant debt levels and through achievements of revenue forecasts.”
These conditions, along with other matters, E&Y continued, indicate the existence of a material uncertainty that may cast significant doubt on the company and group’s ability to continue as a going concern and therefore, may be unable to realise its assets and settle its liabilities in the ordinary course of business.”
The external auditors also drew attention to material uncertainty related to the group’s going concern, including the total comprehensive loss of N63.2bn, a jump from N18.3n in 2018, during which period, it said current liabilities exceeded current assets by N163.2bn, compared to a net current liabilities of N63bn in the preceding year, among other.
