Aradel H1 profit tops N1trn as revenue surges 577% on outp...

Aradel Holdings Plc delivered a record first-half performance for the six months ended June 30, 2026, with operating profit exceeding N1 trillion after a sharp increase in crude oil and gas production drove revenue up by 577 per cent, reinforcing the company’s position as one of Nigeria’s fastest-growing indigenous energy producers.

The company’s unaudited results showed gross revenue rose to N2.49 trillion, from N368.1 billion in the corresponding period of 2025, supported by significantly higher production volumes and stronger realised crude oil and gas prices.

Operating profit climbed by 789 per cent to N1.06 trillion, compared with N118.6 billion a year earlier, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 688 per cent to N1.39 trillion, representing an EBITDA margin of 55.8 per cent.

The strong earnings performance reflected the expansion of the group’s production portfolio, with average production rising to 139.5 thousand barrels of oil equivalent per day (kboepd) from 22.4 kboepd in the first half of 2025.

Average daily crude oil production increased by 258 per cent to 55.6 thousand barrels per day, while average daily gas production surged 1,121 per cent to 503.2 million standard cubic feet per day, driven by improved pipeline availability and sustained customer demand.

The company generated N975.6 billion in net cash from operating activities during the period, almost seven times the N140.8 billion recorded in the corresponding period of last year, strengthening liquidity and significantly improving its financial position.

Cash and cash equivalents increased by 14 per cent to N1.72 trillion as of June 30, 2026, from N1.50 trillion at the end of December 2025.

Aradel also strengthened its balance sheet by reducing net debt by 70 per cent to N46.5 billion, compared with N475.1 billion at the end of 2025, reflecting stronger cash generation from operations.

Despite the strong upstream performance, refined petroleum products output declined by 22 per cent to 126.2 million litres, compared with 161.4 million litres in the corresponding period of 2025, following feedstock constraints and unplanned plant shutdowns during the first quarter.

However, refinery operations recovered during the second quarter, with refined output rising 15 per cent to 67.5 million litres, compared with 58.7 million litres in the first quarter, following measures implemented to improve feedstock supply and plant availability.

Commenting on the results, the Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade, said the company delivered a strong operational and financial performance driven by higher production, sustained gas sales and favourable commodity prices.

He said the stronger operating environment enabled the company to generate substantial cash flows, reduce debt significantly and maintain a strong liquidity position.

Falade added that the company’s priorities for the second half of the year remain focused on optimising its enlarged asset portfolio, improving operational efficiency and unlocking stronger returns for shareholders.

He reaffirmed Aradel’s full-year production guidance of 110,000 to 140,000 barrels of oil equivalent per day, expressing confidence that the company would continue creating long-term value while operating responsibly within Nigeria’s evolving energy landscape