Key points
- Aradel Holdings’ revenue surged nearly sevenfold to ₦2.5 trillion in the first half of 2026.
- Profit after tax increased 30.5 per cent to ₦191 billion despite higher finance costs and taxes.
- Crude oil exports remained the company’s largest revenue source, accounting for 77.8 per cent of turnover.
Main story
Aradel Holdings Plc reported a sharp increase in revenue for the first half of 2026, with turnover rising nearly sevenfold to ₦2.5 trillion from ₦368.1 billion in the corresponding period of 2025, driven by higher oil and gas production and stronger crude oil sales.
The company, which completed the acquisition of a majority stake in ND Western last year, posted a profit after tax of ₦191 billion, up from ₦146.4 billion, although the earnings growth lagged behind the pace of revenue expansion due to significantly higher operating costs, finance expenses and tax charges.
According to its unaudited financial statements, crude oil exports accounted for 77.8 per cent of total revenue during the period. Average daily crude oil production increased by 258 per cent, while average daily gas production rose by 1,121 per cent.
Aradel’s refining business at the Ogbele field in Rivers State generated ₦129.5 billion from refined petroleum product sales, representing an 8.1 per cent increase from the previous year.
However, the company’s performance was weighed down by other losses of ₦213.1 billion, compared with a gain of ₦8.6 billion a year earlier, while finance costs surged to ₦326.1 billion from ₦11.1 billion.
Tax expenses also rose sharply by 1,150.4 per cent to ₦561.7 billion, although profit before tax climbed 293.4 per cent to ₦752.7 billion.
Aradel said earnings before interest and tax (EBIT) margin improved to 42.4 per cent from 32.2 per cent, while its share of profit from an associate fell to zero from ₦71.3 billion recorded in the corresponding period of 2025.
The company generated net operating cash flow of ₦975.6 billion during the period and ended the half-year with a cash balance of ₦1.72 trillion.
The issues
Aradel’s results reflect the significant earnings potential of higher oil production and favourable crude prices, but also highlight how rising finance costs, taxes and other operating expenses can dilute profitability. The results also underscore the growing importance of scale following the company’s acquisition of ND Western and the continued contribution of domestic refining to revenue diversification.
What’s being said
“A firmer price environment supported performance, generating net cash from operating activities of ₦975.6 billion and a closing cash balance of ₦1,716.6 billion.” — Adegbite Falade, Chief Executive Officer, Aradel Holdings.
“This drove the reduction in net debt to ₦46.5 billion at year’s end, from ₦475.1 billion in the prior year.” — Adegbite Falade, Chief Executive Officer, Aradel Holdings.
What’s next
Investors will monitor whether Aradel can sustain higher production levels, improve cost efficiency and translate its strong revenue growth into faster earnings expansion in the second half of the year as oil market conditions evolve.
Bottom line
Aradel delivered exceptional revenue growth in the first half of 2026, but soaring finance costs and taxes tempered earnings growth, underscoring the challenge of converting higher oil production into stronger shareholder returns.
