Aradel Holdings Plc has reported a sharply improved financial performance for its 2025 financial year, posting a pre-tax profit of N835.0 billion, representing a 163.60% increase from N316.8 billion in the previous year.
The results, contained in its audited financial statement for the period ended December 31, 2026, were driven by stronger operational earnings and significant one-off gains linked to its ND Western and Renaissance transactions, which reshaped the group’s financial structure during the year.
Reflecting the strong performance, the Board of Directors recommended a final dividend of N23.00 per share. This brings total dividends for the 2025 financial year to N33.00 per share, subject to shareholders’ approval and applicable withholding tax. The final dividend is scheduled for payment on July 31, 2026, to shareholders on the register as of July 9, 2026.
‘A defining year’ marked by transformational expansion
Commenting on the results, Chief Executive Officer Adegbite Falade described 2025 as “a defining year,” noting that the company delivered “record revenue and profitability” while executing what he called its most transformational expansion phase.
He added that the full earnings impact from ND Western and Renaissance acquisitions would become more visible from 2026 onwards, suggesting continued structural uplift in future performance.
Revenue growth led by crude, gas and refined products
Aradel’s revenue rose 20.35% year-on-year to N699.43 billion, supported by growth across its three core segments, with crude oil remaining the dominant contributor.
Crude oil exports increased to N440.1 billion, accounting for 63% of total revenue, driven by higher production volumes and improved evacuation through the Trans Niger Pipeline and alternative evacuation systems.
Refined products revenue rose 18% to N210.8 billion, supported by a 26% increase in sales volume to 302.9 million litres. Gas revenue recorded the strongest percentage growth, surging 72% to N48.6 billion, despite a decline in average realised gas prices to $1.52 per mscf from $1.66 per mscf.
Profit surge driven by non-recurring gains
While revenue growth remained solid, gross profit declined 13.55% to N308.21 billion, as cost of sales rose significantly to N391.2 billion, compressing margins.
However, earnings strengthened further down the income statement, where operating profit surged 151.74% to N733.58 billion. This was largely driven by major non-recurring accounting gains tied to the company’s business combinations, including a N217.1 billion bargain purchase gain and a N393.2 billion translation gain.
Additional support came from a 246% rise in share of profit from associates to N109.5 billion, helping to lift overall pre-tax earnings.
The company also recorded notable exceptional items, including a N40.2 billion crude overlift adjustment, a N25.5 billion royalty provision, and N48.5 billion in long-term incentive plan (LTIP) staff costs.
Finance costs rose to N26.5 billion from N22.2 billion, while administrative expenses increased to N93.1 billion from N56.2 billion, reflecting higher operational scale and integration costs.
Production gains and operational expansion
Operationally, Aradel recorded improvements across key indicators. Crude oil and condensate production rose to 5.2 million barrels, up 3% year-on-year, while crude lifted jumped 32% to 4.1 million barrels.
Gas production increased significantly by 59% to 18.8 billion cubic feet, with average daily output rising to 51.4 mmscf/day.
Refined product output also improved, rising 18% to 313.4 million litres, while refinery utilisation climbed to 49%, up from 40% in the previous year.
Stronger balance sheet after major consolidation
The company’s balance sheet expanded sharply following the consolidation of ND Western’s assets and liabilities and the integration of its interest in Renaissance.
Total assets surged to N9.90 trillion, while total equity rose to N2.15 trillion. Cash and cash equivalents also grew significantly to N1.50 trillion.
However, total borrowings increased steeply to N2.00 trillion, reflecting a 1,978.24% rise year-on-year, as the company financed its expanded asset base and transactions.
Net cash from operating activities eased to N179.7 billion from N311.9 billion, largely due to timing differences in settlements and working capital movements.
Market performance reflects investor optimism
Investor sentiment remained strongly positive, with Aradel’s share price rising from N670.00 at the start of the year to about N1,700 at last close, representing a 161% year-to-date gain.
The performance underscores market confidence in the company’s expansion strategy and its evolving position within Nigeria’s upstream and integrated energy sector.