Aradel Holdings H1 Revenue Surges 577% to N2.49 Trillion as Profit Hits N191 Billion

Aradel Holdings Plc delivered a sharp increase in earnings in the first half of 2026 as higher crude oil and gas production, stronger realised energy prices and increased operating activity lifted revenue to N2.49 trillion.

The indigenous integrated energy company reported N191.04 billion in profit after tax for the six months ended June 30, 2026, representing a 30 percent increase from N146.39 billion recorded in the corresponding period of 2025.

Revenue surged 577 percent to N2.49 trillion from N368.08 billion, while gross profit jumped 782 percent to N1.44 trillion from N163.16 billion.

The expansion was supported by a significant increase in production following the enlargement of the Group’s operating portfolio.

Average group production rose 523 percent to 139,500 barrels of oil equivalent per day, compared with 22,400 barrels of oil equivalent per day in the first half of 2025.

Crude oil production increased 258 percent to 55,600 barrels per day from 15,500 barrels per day, while average gas production surged 1,121 percent to 503.2 million standard cubic feet per day from 41.2 million standard cubic feet per day.

Aradel attributed the gas performance to improved pipeline availability and sustained customer demand.

Higher production was complemented by stronger pricing, with the Group recording an average realised crude oil price of $90.40 per barrel and an average realised gas price of $2.08 per million standard cubic feet during the period.

Earnings before interest, taxes, depreciation and amortisation rose 688 percent to N1.39 trillion, compared with N176.4 billion a year earlier, giving the Group an EBITDA margin of 55.8 percent.

Operating profit advanced 789 percent to N1.06 trillion from N118.6 billion, supported by the higher revenue base and N149.8 billion in crude handling income.

However, the increase in operating earnings did not translate proportionately into bottom-line growth as financing and tax costs weighed on profitability.

Finance costs jumped to N326.14 billion from N11.08 billion, leaving the Group with a net finance cost of N302.47 billion, compared with net finance income of N1.42 billion in the previous year.

Consequently, profit before tax increased 293 percent to N752.71 billion from N191.31 billion, while a tax charge of N561.67 billion reduced profit after tax to N191.04 billion.

Profit attributable to shareholders of Aradel Holdings stood at N153.66 billion, compared with N144.53 billion in H1 2025, while non-controlling interests accounted for N37.38 billion. Basic and diluted earnings per share increased to N35.37 from N33.26.

The Group also generated significantly stronger cash flows with net cash from operating activities rising to N975.61 billion from N140.78 billion a year earlier.

Cash and cash equivalents increased to N1.72 trillion at the end of June from N1.50 trillion at December 31, 2025, while net debt declined 70 percent to N46.5 billion from N475.1 billion.

Performance in the refining segment was weaker with refined product output declining 22 percent to 126.2 million litres from 161.4 million litres due to constrained feedstock availability and unplanned plant downtime during the first quarter.

However, production recovered in the second quarter to 67.5 million litres, 15 percent higher than the 58.7 million litres produced in the first quarter following efforts to improve feedstock supply and plant availability.

Chief Executive Officer Adegbite Falade said the Group would focus during the second half of 2026 on optimising its enlarged portfolio and improving operational efficiency to generate stronger cash flows and shareholder returns.

Aradel maintained its full-year production guidance of between 110,000 and 140,000 barrels of oil equivalent per day.