Aradel Holdings Plc delivered a significant improvement in its financial performance in the first half of 2026, recording a pre-tax profit of N752.71 billion for the six months ended June 30, 2026.
The company’s latest unaudited financial statement filed with the Nigerian Exchange (NGX) on Friday, July 31, 2026, showed that pre-tax earnings surged by 293% compared with the N191.31 billion recorded in the same period of 2025.
The strong performance was largely supported by higher crude oil production, increased sales volumes, and the contribution of expanded operations following recent acquisitions.
Revenue climbs to N2.49 trillion on hydrocarbon growth
Aradel’s revenue rose sharply to N2.49 trillion during the period, representing a 577% increase from N368.08 billion reported in H1 2025.
Gross profit also expanded significantly, rising to N1.44 trillion from N163.16 billion, while operating profit climbed to N1.06 trillion compared with N118.62 billion in the previous year.
The company’s profit after tax stood at N191.04 billion, up 30% from N146.39 billion recorded a year earlier. Earnings per share increased marginally to N35.37 from N33.26.
However, finance costs increased considerably during the period, rising to N326.14 billion from N11.08 billion, representing a 2,843% year-on-year increase.
Crude oil remains the major earnings driver
The company’s upstream operations remained the key contributor to its financial performance, with crude oil accounting for the largest share of revenue.
Crude oil sales generated N1.98 trillion, representing about 79% of total revenue. Gas contributed N512.10 billion, while refined products accounted for N129.44 billion.
The crude oil segment alone delivered N545.70 billion in pre-tax profit, making it the strongest contributor to overall earnings.
Revenue growth was driven by expanded production capacity, improved sales volumes, and the impact of recent strategic transactions that strengthened Aradel’s asset base.
Export markets continued to account for the majority of sales, generating approximately N1.94 trillion, or nearly 78% of total revenue.
Rising costs, finance charges weigh on earnings
The increase in production activities also resulted in higher operating expenses. Cost of sales rose to N1.05 trillion from N204.92 billion in the prior-year period.
Major cost components included royalties and statutory expenses of N415.49 billion, depreciation and amortisation charges of N319.73 billion, and operational and maintenance expenses of N212.73 billion.
Despite the rise in expenses, gross profit expanded significantly as revenue growth outpaced cost increases.
Finance expenses also recorded a major jump, primarily due to higher interest expenses on bank borrowings and the unwinding of decommissioning obligations.
The company also recorded other losses during the period, including a N489.42 billion underlift position and foreign exchange-related losses. Nevertheless, strong operating performance pushed operating profit above the N1 trillion mark.
Balance sheet strengthens as assets rise to N10.88 trillion
Aradel reported further improvements in its balance sheet position during the review period.
Total assets increased to N10.88 trillion, representing a 10% rise from N9.90 trillion recorded at the end of December 2025.
Cash and cash equivalents also improved, rising 14% to N1.72 trillion from N1.50 trillion.
The company generated N975.61 billion from operating activities despite paying N429.88 billion in taxes during the period.
Aradel also reduced its external debt position through repayments, bringing total external debt down to N1.81 trillion from N2.00 trillion at the end of 2025.
Shares remain flat after strong earnings release
Despite the strong financial results, Aradel Holdings’ share price closed unchanged at N1,526.80 on Friday, July 31, 2026, maintaining the same level recorded since July 10.
However, the stock has gained significantly since the beginning of the year, rising 127.88% from its 2025 closing price of N670.
Strong H1 performance builds on 2025 momentum
The latest results extend the company’s strong performance recorded in 2025, when Aradel reported a pre-tax profit of N835.0 billion, representing a 163.6% increase from N316.8 billion achieved in 2024.
The company attributed the strong earnings performance to improved operational results as well as gains linked to its ND Western and Renaissance transactions.
Following the 2025 performance, Aradel’s Board recommended a final dividend of N23.00 per share, bringing the total dividend payout for the financial year to N33.00 per share.