Aradel Holdings Posts 55% Net Profit Growth

Aradel Holdings Plc has posted 55 per cent increase in its profit after tax for the fiscal year ended December 31, 2025.

The Company attributed the growth to the effectiveness of its disciplined mergers and acquisitions (M&A) strategy and a commitment to long-term value creation.

Aradel Holdings, in its unaudited results, reported that profit before tax grew by 46 per cent to N463.7 billion, up from N316.8 billion in the full year 2024. Profit after tax for the period was N401.2 billion, a 55 per cent increase from N259.1 billion in 2024, driven by improved tax efficiency and higher earnings contribution.

Total revenue rose by 20 per cent year-on-year to N697.3 billion compared to N581.2 billion, driven by sustained momentum across all business segments.

Cost of sales rose to N417.277 billion from N224.633 billion in 2024, while gross profit fell to N280.024 billion, down from N356.519 billion in 2024.

Gross margin moderated to 40 per cent, compared with 61 per cent in the prior year, while other income for the full year 2025 amounted to N219.1 billion.

Consequently, operating profit stood at N272.0 billion, a 7% decline from N291.4 billion in the prior year, largely due to higher operating costs and lower realised crude oil prices during the period.

Speaking on the results, the chief executive officer, Aradel Holdings, Mr Adegbite Falade said, “Aradel delivered a strong and resilient performance in 2025, reflecting the quality of our asset base, disciplined execution, and the inherent resilience of our diversified energy portfolio. Despite operating in a dynamic environment, we achieved meaningful growth across our upstream, gas, and refining businesses.”

“During the year, we advanced our acquisition-led growth strategy with the completion of two landmark transactions: the acquisition of a 33.3 per cent effective equity interest, comprising 12.5 per cent directly by Aradel Energy; and 20.8 per cent indirectly through ND Western Limitedin Renaissance Africa Energy Company Limited, operator of the Renaissance Joint Venture (formerly known as the SPDC Joint Venture), and the purchase of an additional 40 per cent equity interest in ND Western Limited,” he stated.

Falade noted that the acquisition of the additional interest in ND Western Limited represents a significant milestone for the Group.

“It is fully aligned with Aradel’s long-term strategy of disciplined portfolio consolidation, asset base expansion, and sustainable value creation, and it further strengthens our strategic position within Nigeria’s upstream oil and gas sector.

“The completion of the NDW transaction increases Aradel’s effective interest in ND Western Limited to 81.67 per cent and the Renaissance Africa Energy Company Limited to 53.33 per cent.”

Looking ahead, he said, “our focus in 2026 is on consolidating our expanded portfolio to enhance operational scale, improve efficiency across our assets, increase production and further diversify our revenue base in support of long-term shareholder value.”