Aradel Holdings Plc reported a 154.3% increase in consolidated pre-tax profit to N764.71 billion for the nine months ended September 30, 2026, from N300.68 billion in the corresponding period of 2025, driven by stronger crude oil and gas operations.
According to the company’s unaudited financial statements and earnings release dated October 30, 2026, revenue surged by 633% to N3.95 trillion from N538.81 billion, while operating profit increased by 832.4% to N1.56 trillion.
Aradel also reported EBITDA of N2.10 trillion, up from N261.5 billion, while net cash generated from operating activities increased to N2.46 trillion from N205.41 billion.
However, consolidated profit after tax declined by 82.3% to N43.30 billion from N245.12 billion, reflecting substantial finance costs associated with the Renaissance acquisition and higher tax expenses.
Sequel to this, Aradel’s board declared an interim dividend of N7.00 per share, totalling N30.4 billion, with a qualification date of November 27, 2026, and payment scheduled for December 7, 2026.
The dividend will be paid electronically to eligible shareholders who have completed their e-dividend registration.
Commenting on the results, Aradel Holdings’ Chief Executive Officer, Adegbite Falade, said:
On the Renaissance earnout arrangement, Falade stated:
Meanwhile, the company raised its full-year 2026 production guidance to an average 140,000–150,000 barrels of oil equivalent per day, from the previous range of 110,000–140,000, following stronger-than-expected production during the nine-month period.
Aradel’s nine-month revenue growth was largely driven by its crude oil and gas businesses, following the full consolidation of ND Western and Renaissance operations.
Management attributed the gas production increase to expanded processing capacity, improved pipeline availability and sustained customer demand.
However, the company noted that the year-on-year growth figures largely reflected the consolidation of ND Western and Renaissance, which were previously accounted for as associates.
The stronger revenue performance translated into higher gross profit, which increased by 608.7% to N1.66 trillion from N234.72 billion.
Management explained that the increase in other income was largely driven by crude handling fees earned from third-party use of the group’s evacuation infrastructure.
Unit field operating costs also declined by 28% to $7.9 per barrel of oil equivalent from $11.0, supported by improved reliability of the Trans Niger Pipeline and lower field activity costs.
Despite the improvement in operating performance, finance costs rose significantly to N841.12 billion from N21.39 billion in the corresponding period of 2025.
Aradel explained that this obligation is recognised as contingent consideration, with the associated charge recorded under finance costs.
The tax charge comprised N1.04 trillion in current tax, partly offset by a deferred tax credit of N316.02 billion.
According to management, the increase reflected the higher applicable petroleum tax rates under the old petroleum tax regime, to which the newly consolidated ND Western and Renaissance operations are subject, compared with the rates under the Petroleum Industry Act (PIA).
The company explained that excluding the N529.10 billion Renaissance earnout charge, profit after tax would have reached N572.4 billion, representing a 134% increase over the corresponding period of 2025. This is an alternative performance measure rather than reported IFRS profit.
The group, alongside other Renaissance shareholders, is therefore engaging the seller to address the arrangement.
On the balance sheet, total assets increased by 8.7% to N10.76 trillion from N9.90 trillion at the end of 2025, supported by higher current assets.
Management attributed the reduction in debt to the full repayment of two facilities during the first quarter and scheduled repayments across the group.
Consequently, Aradel moved from a net debt position of N475.1 billion at December 2025 to a net cash position of N532.3 billion at September 2026.
On cash flow, Aradel’s cash generation strengthened during the nine-month period, with net cash from operating activities increasing to N2.46 trillion from N205.41 billion.
