Aradel Posts N753bn Pre-tax Profit, Records N2.492tn Revenue

Aradel Holdings Plc has reported a pre-tax profit of N752.71 billion in its unaudited half year (H1) financial statement for the period ended June 30, 2026.

The performance represents an increase of 293 per cent from N191.31 billion recorded in the corresponding period of 2025.

This is according to the company’s unaudited financial statement filed on the Nigerian Exchange (NGX).

The Company recorded a gross revenue of N2.492 trillion, up by 577 per cent from N368.1 billion in 2025, reflecting higher production volumes together with stronger realised crude oil and gas prices.

Revenue grew to N2.49 trillion from N368.08 billion in the prior-year period, reflecting the impact of expanded operations following recent acquisitions and stronger hydrocarbon production.

Export sales remained dominant, with revenue generated outside Nigeria accounting for approximately N1.94 trillion, representing nearly 78 per cent of total revenue.

Cost of sales increased to N1.05 trillion from N204.92 billion as production volumes rose, while gross profit rose by 782 per cent to N1.44 trillion as against N 163.2 billion.

Finance costs rose sharply to N326.14 billion from N11.08 billion, driven primarily by interest expenses on bank borrowings and the unwinding of decommissioning obligations.

Profit before tax up by 293 per cent to N752.7 billion as against N191.3 billion, while profit after tax amounted to N191.0 billion from N146.4 billion.

The balance sheet strengthened during the period. Total assets increased to N10.88 trillion while cash and cash equivalents rose to N1.72 trillion.

Operating activities generated N975.61 billion in cash despite tax payments of N429.88 billion. The company also reduced borrowings through repayments during the period, supporting a lower debt balance compared with year-end 2025.

Speaking on the results, the chief executive officer, Aradel Holdings, Mr. Adegbite Falade stated that “the Group delivered a strong first-half performance. Revenue of N2,491.5 billion and EBITDA of N1,389.2 billion, with an EBITDA margin of 55.8 per cent, reflect production of 25.2 mmboe and sustained gas offtake at 503.2 mmscf/d. Refined output strengthened through the period, with second-quarter volumes of 67.5 million litres, 15 per cent above the first quarter, as measures to secure feedstock supply and restore plant availability took effect.”

He added that “a firmer price environment supported performance, generating net cash from operating activities of N975.6 billion and a closing cash balance of N1,716.6 billion. This drove the reduction in net debt to N46.5 billion at year end, from N475.1 billion in the prior year.

“Our priorities for the second half of the year are unchanged: optimising our enlarged portfolio and improving operational efficiency. Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus. We reaffirm our full year production guidance of 110 – 140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders.”