Aradel Holdings Posts 55% Jump in Pre-Tax Profit to N401.2bn, Cites Diversification and Strategic Acquisitions
Aradel Holdings Plc has reported a 55 per cent increase in profit before tax to N401.2 billion in its unaudited financial results for the year ended December 31, 2025, driven by stronger revenues and significant gains from associates. The company, which has been executing an acquisition-led growth strategy, said it remains committed to sustaining value creation for stakeholders as it consolidates a broader portfolio of assets across upstream, gas, and refining operations.
The company’s profit after tax rose sharply from N259.1 billion in 2024 to N401.2 billion in 2025, while total revenue increased by 20 per cent year-on-year, rising from N581.2 billion in 2024 to N697.3 billion in 2025. The revenue growth was underpinned by stronger crude oil exports and expanded refined product sales, reflecting continued momentum across all business segments.
Despite the overall earnings surge, Aradel recorded a decline in operating profit during the period, mainly due to exceptional, non-recurring items. These included crude oil over lifts that led to a N34.7 billion stock adjustment expense, a one-off N25.5 billion provision for price-based royalties pending resolution of a computation mechanism, and higher staff costs driven by Long-Term Incentive Plan (LTIP) payments. The company stressed that these items were not reflective of its core operating performance, but rather specific events that affected the reporting period.
A major highlight of the results was the sharp rise in share of profit from associates, which surged by 523 per cent to N197.0 billion in 2025, compared with N31.6 billion in 2024. Aradel said this growth underscores the benefits of its diversification strategy, which has expanded its exposure to higher-value upstream and gas assets and improved its earnings profile.
The company noted that the full financial impact of its acquisition of ND Western Limited, completed on December 31, 2025, will be reflected in subsequent reporting periods. The acquisition, which increased Aradel’s effective interest in ND Western to 81.67 per cent and its interest in Renaissance Africa Energy Company Limited to 53.33 per cent, is expected to further strengthen the group’s strategic position in Nigeria’s upstream oil and gas sector.
Aradel’s Chief Executive Officer, Mr. Adegbite Falade, described the company’s 2025 performance as strong and resilient, attributing the results to the quality of its asset base, disciplined execution, and the resilience of a diversified energy portfolio. He highlighted that the group achieved meaningful growth across its upstream, gas, and refining businesses despite operating in a dynamic and challenging environment.
Falade also reiterated the company’s acquisition-led growth trajectory, pointing to two landmark transactions completed during the year. The first, concluded on March 13, 2025, saw the Renaissance consortium acquire 100 per cent of SPDC Limited, with Aradel’s effective share at completion standing at 33.3 per cent. The second transaction, completed on December 31, 2025, involved the acquisition of an additional 40 per cent equity interest in ND Western Limited. This transaction resulted in a material increase in Aradel’s aggregate shareholding in ND Western from 41.67 per cent to 81.67 per cent, while its ownership of Renaissance Africa Energy Company Limited rose from 33.3 per cent to 53.3 per cent.
Looking ahead, Falade said the company’s focus for 2026 is on consolidating its expanded portfolio to enhance operational scale, improve efficiency, increase production and further diversify its revenue base, all in support of long-term shareholder value.
Operationally, Aradel recorded a marginal increase in crude oil and condensate production, rising by three per cent to 5.16 million barrels in the full year 2025, compared with 5.06 million barrels in the prior year. Average crude oil production increased to 14,142 barrels per day, up from 13,751 barrels per day in 2024, driven by improved well optimization and operational efficiency.
Gas production volumes rose significantly, with total output increasing by 59 per cent to 18.76 billion cubic feet in 2025, compared with 11.81 billion cubic feet in 2024. Average daily gas production also climbed by 59 per cent to 51.4 million standard cubic feet per day, supported by new gas wells and enhanced recovery. The company recorded its highest-ever gas production rate of approximately 83.8 million standard cubic feet per day, attributed to a gas revamp and expansion project, reinforcing Aradel’s growing role in Nigeria’s domestic gas supply and energy transition agenda.
In refining, the company’s refined product volumes increased by 18 per cent to 313.4 million litres in 2025, up from 264.9 million litres in 2024. This improvement reflected better refinery uptime and expanded capacity, with capacity utilisation rising to 49 per cent in 2025 from 40 per cent in 2024. The company noted that this level of utilisation indicates further upside potential and opportunities to optimise the refinery business.
Safety remained a core priority, with Aradel recording 10.2 million manhours without a Lost Time Injury across all operated assets during the period, which the company said underscores its robust safety culture and workforce commitment.
On the revenue front, crude oil export revenue grew by 18 per cent to N440.1 billion, supported by higher production volumes and reliable evacuation through both the Trans Niger Pipeline (TNP) and the Atlantic Coast Export (ACE) system. Crude sales rose to 4.1 million barrels in 2025 from 3.1 million barrels in 2024, accounting for 63 per cent of total revenue despite a decline in realised crude oil prices.
Refined product revenue increased by 18 per cent to N210.8 billion, representing 30 per cent of total revenue, driven by a 26 per cent rise in sales volume to 302.9 million litres. The growth reflected the company’s expanding downstream footprint and stronger market penetration.
Aradel also reported a substantial increase in total assets, which rose by 495 per cent year-to-date to N10.4 trillion, primarily due to the consolidation of ND Western and Renaissance following the acquisition of control in both entities. The company said the enlarged asset base will support its strategy of portfolio consolidation and long-term value creation.