Aradel’s profit jumps 192% on acquisition gains, higher sales

Aradel Holdings Plc reported a 192 percent surge in full-year profit after tax for 2025, driven by strong growth across its oil, gas, and refining businesses, as well as substantial one-off gains arising from its landmark acquisition of additional interests in ND Western and Renaissance Africa Energy Company.

Profit at Nigeria’s integrated energy company rose to N757.3 billion in 2025 from N259.1 billion a year earlier, while revenue increased 20 percent to N699.4 billion from N581.2 billion.

The earnings growth was underpinned by higher crude oil, gas, and refined product sales, alongside a sharp increase in earnings from associates.

However, the biggest boost came from accounting gains linked to the acquisition of an additional 40 percent stake in ND Western, which raised Aradel’s effective ownership in Renaissance to 53.3 percent.

Operating profit climbed 152 percent to N733.6 billion, helped by a N217.1 billion gain on bargain purchase and a N393.2 billion foreign-currency translation gain arising from the business combination.

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“2025 was a defining year as we continued to strengthen our position as an integrated energy operating platform,” Adegbite Falade, chief executive officer of Aradel Holdings, said in a statement filed on the Nigerian Exchange on Saturday.

“We delivered record revenue and profitability, while executing the most transformational strategic expansion in our history,” he said, adding that the increased stake in ND Western and Renaissance had significantly expanded the company’s reserves, production base, and operational footprint.

Crude oil exports, which accounted for 63 percent of revenue, rose 18 percent to N440.1 billion, supported by higher production and improved evacuation through the Trans Niger Pipeline and Alternative Crude Evacuation system.

Refined product revenue increased 18 percent to N210.8 billion, while gas revenue jumped 72 percent to N48.6 billion as output from new wells lifted production volumes.

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Gas was the standout operational performer. Production rose 59 percent to 18.8 billion cubic feet, with average daily output reaching 51.4 million standard cubic feet, compared with 32.4 million a year earlier
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The company also recorded its highest-ever gas production rate of approximately 83.8 million standard cubic feet per day following the completion of a gas revamp and expansion project.

Crude oil production increased modestly by 3 percent to 14,100 barrels per day, while refinery utilisation improved to 49 percent from 40 percent, helping refined product output rise 18 percent to 313.4 million litres.

Aradel’s share of profit from associates rose 246 percent to N109.5 billion, reflecting earnings contributions from acquired entities that were not yet fully consolidated into the income statement.

The acquisitions were completed on Dec. 31, 2025, meaning their operational and earnings contributions will only be fully reflected in the group’s consolidated accounts from 2026.

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The transactions transformed the company’s balance sheet, with total assets expanding 466 percent to nearly N10 trillion from N1.75 trillion.

Despite the strong earnings, the company recognised a N30.3 billion fair-value loss on its investment in Chappal Energies after reassessing the investee’s financial position and going-concern status.

Looking ahead, Falade said the company would focus on integrating its enlarged portfolio, improving efficiency, and increasing production.

“The consolidation of NDW and Renaissance fundamentally reset the scale of the company’s balance sheet, giving us the asset and reserve base to underpin our future expansion,” he said.

The board proposed a final dividend of N23 per share, bringing total dividends for 2025 to N33 per share, up 26 percent in dollar terms from the previous year.

Shares of Aradel Holdings have gained 161 percent year-to-date on rising investor confidence backed by strong fundamentals. Aradel closed its last trading day on Friday, June 19, 2026, at N1,750 per share, recording a 4.8 percent gain over its previous closing price of N1,670.