Aradel Holdings profit surge hits 55% in 2025, driven by strategic acquisitions, stronger crude exports, and record gas production

Aradel Holdings Plc yesterday reported a 55 per cent rise in profit before tax to N401.2 billion for the year ended December 31, 2025, citing strategic diversification and gains from associates as key drivers of growth.

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Chief Executive Officer Adegbite Falade described the performance as strong and resilient, attributing it to disciplined execution across upstream, gas, and refining operations, as well as the resilience of a diversified energy portfolio.

Profit after tax rose from N259.1 billion in 2024 to N401.2 billion in 2025, while total revenue increased 20 per cent to N697.3 billion, supported by higher crude oil exports and expanded refined product sales.

The company recorded a decline in operating profit due to non-recurring items, including a N34.7 billion stock adjustment for crude oil over lifts, a one-off N25.5 billion provision for price-based royalties, and higher staff costs from Long-Term Incentive Plan payments.

Aradel stressed these items did not reflect its core operating performance.

A major highlight was the 523 per cent surge in share of profit from associates to N197.0 billion, underscoring the impact of the company’s diversification strategy into higher-value upstream and gas assets.

Falade noted the strategic acquisitions completed in 2025, including an additional 40 per cent equity in ND Western Limited, raising Aradel’s holding to 81.67 per cent, and increasing its stake in Renaissance Africa Energy Company Limited to 53.33 per cent.

He said these moves will further consolidate the group’s position in Nigeria’s upstream sector.

Operationally, crude oil and condensate production rose three per cent to 5.16 million barrels, while average daily output increased to 14,142 barrels.

Gas production expanded 59 per cent to 18.76 billion cubic feet, with average daily output rising to 51.4 million standard cubic feet, marking the company’s highest-ever gas production.

Refining volumes increased by 18 per cent to 313.4 million litres, with capacity utilisation improving to 49 per cent, highlighting opportunities to optimise downstream operations.

Safety remained a priority, with 10.2 million manhours logged without a Lost Time Injury.

Revenue from crude oil exports rose 18 per cent to N440.1 billion, while refined product revenue grew 18 per cent to N210.8 billion, reflecting stronger market penetration.

Total assets expanded 495 per cent to N10.4 trillion following consolidation of ND Western and Renaissance, supporting long-term portfolio growth.

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Looking ahead, Falade said the focus for 2026 will be consolidating the expanded portfolio, increasing operational efficiency, boosting production, and further diversifying revenue to sustain shareholder value.