Aradel Holdings Plc has released its unaudited financial results for the year ended December 31, 2025, reporting a sharp rise in profitability supported by sustained revenue growth and portfolio expansion.
The diversified energy company posted a pre-tax profit of ₦463.71 billion for the 2025 financial year, representing a 46.5 per cent increase from the ₦316.77 billion recorded in 2024.
Profit after tax also strengthened significantly, rising by 54.87 per cent year-on-year to ₦401.22 billion. The improved bottom-line performance reflected resilient earnings across Aradel’s operating segments and the continued impact of its diversification strategy.
Key Financial Highlights (FY 2025 vs FY 2024)
- Revenue: ₦697.30 billion (+20% YoY)
- Gross Profit: ₦280.02 billion (-21.48% YoY)
- Operating Profit: ₦272.03 billion (-6.66% YoY)
- Earnings Per Share: ₦91.59 (+54.43% YoY)
- Total Assets: ₦10.42 trillion (+495% YoY)
- Total Equity: ₦3.48 trillion (+147.24% YoY)
Management Commentary
Commenting on the results, Aradel’s Chief Executive Officer, Adegbite Falade, said the company delivered a strong performance in 2025, underscoring the quality of its asset base and disciplined operational execution.
According to him, Aradel’s diversified energy portfolio demonstrated resilience, with growth recorded across its upstream, gas, and refining businesses. He added that the acquisition of an additional 40 per cent stake in ND Western Limited further strengthened the company’s position in Nigeria’s upstream oil and gas sector, enhancing long-term value creation.
Revenue Drivers and Operational Performance
Revenue growth remained the primary driver of Aradel’s earnings in 2025, supported by increased production volumes and broader market penetration across its operating segments.
Crude oil revenue rose by 18 per cent to ₦440.1 billion, up from ₦373.7 billion in the previous year. This growth was supported by higher production volumes and reliable evacuation through the Trans Niger Pipeline (TNP) and the Alternative Crude Evacuation (ACE) system.
Crude oil sales increased to 4.1 million barrels from 3.1 million barrels in 2024, accounting for 63 per cent of total revenue, despite lower realised crude prices during the year.
Revenue from refined petroleum products climbed by 18 per cent to ₦210.8 billion, compared to ₦179.3 billion in 2024. Refined products contributed 30 per cent of total revenue, driven by a 26 per cent increase in sales volume to 302.9 million litres from 240.5 million litres in the prior year.
Gas revenue recorded the fastest growth, surging by 65 per cent to ₦46.4 billion from ₦28.2 billion in 2024, accounting for 7 per cent of total revenue. The increase was attributed to higher production volumes, even as realised gas prices declined to $1.52 per mscf from $1.66 per mscf.
Cost Pressures Impact Margins
Despite strong revenue growth, gross profit and operating profit declined in 2025 due to several cost pressures highlighted in the company’s unaudited press release.
These included a stock adjustment expense of ₦34.7 billion arising from crude oil overlifts of 534 thousand barrels, compared to a ₦26.7 billion credit in 2024. Aradel also recorded a one-off royalty provision of ₦25.5 billion linked to price-based royalties.
Staff costs rose sharply by 85 per cent to ₦94.8 billion, largely driven by long-term incentive plan (LTIP) payments of ₦48.5 billion. In addition, operating expenses increased due to higher crude handling charges, maintenance costs which rose by 73 per cent, and depreciation which climbed by 44 per cent.
Balance Sheet Expansion
Aradel’s balance sheet expanded significantly during the year, with total assets jumping to ₦10.42 trillion from ₦1.75 trillion in 2024. The increase was largely driven by the consolidation of ND Western Limited and Renaissance Africa Energy Company following their acquisition.
Shareholders’ equity strengthened to ₦3.48 trillion from ₦1.40 trillion in the prior year, reflecting the growth in the company’s net asset position.
Strategic Transactions and Outlook
In 2025, Aradel completed two major transactions: the acquisition of a 33.3 per cent effective equity interest in Renaissance Africa Energy Company and the purchase of an additional 40 per cent equity stake in ND Western Limited, raising its effective interest to 81.67 per cent.
Looking ahead, the company said its focus in 2026 will be on consolidating its expanded asset base, improving operational efficiency, increasing production levels, and further diversifying revenue streams to support sustainable shareholder value creation.
Market Performance
Aradel’s shares gained 12 per cent year-to-date in 2025, closing the year at ₦670 per share. In 2026 so far, the stock has advanced to ₦820, representing a 22.4 per cent year-to-date increase. Over the past four weeks, the stock has appreciated by 12 per cent, reflecting positive investor sentiment toward the company’s growth outlook.
