Aradel Holdings Plc has reported a strong financial and operational performance for the half-year ended June 30, 2026, driven by a sharp increase in crude oil and gas production following the expansion of its asset portfolio, higher commodity prices and stronger operating cash flows.
The integrated indigenous energy company recorded gross revenue of N2.49 trillion, representing a 577 per cent increase from N368.1 billion reported in the corresponding period of 2025.
The company’s unaudited financial statements also showed that earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 688 per cent to N1.39 trillion, while operating profit surged 789 per cent to N1.06 trillion.
Despite the remarkable growth in operating earnings, profit after tax rose at a more moderate pace of 30 per cent to N191 billion, compared with N146.4 billion in the first half of 2025. Profit before tax, however, climbed 293 per cent to N752.7 billion.
Operationally, Aradel recorded substantial increases in hydrocarbon production following the enlargement of its upstream portfolio.
Average group production rose by 523 per cent to 139.5 thousand barrels of oil equivalent per day (kboepd) from 22.4 kboepd recorded in the corresponding period last year.
Average daily crude oil production increased by 258 per cent to 55.6 thousand barrels per day (kbopd) from 15.5 kbopd, while gas production recorded the strongest growth, jumping 1,121 per cent to 503.2 million standard cubic feet per day (mmscf/d) from 41.2 mmscf/d.
The company attributed the increase in gas output to improved pipeline availability and sustained customer demand.
Refined product output, however, declined by 22 per cent to 126.2 million litres during the period due to constrained feedstock availability and unplanned refinery downtime in the first quarter.
Nevertheless, refinery operations improved significantly in the second quarter as output recovered to 67.5 million litres, representing a 15 per cent increase over the first quarter after measures were implemented to improve feedstock supply and restore plant availability.
Aradel also reported a significant improvement in liquidity, with net cash generated from operating activities increasing to N975.6 billion, about seven times the N140.8 billion generated in the corresponding period of 2025.
Cash and cash equivalents stood at N1.72 trillion as of June 30, 2026, compared with N1.50 trillion at the end of December 2025.
The stronger cash generation enabled the company to substantially reduce borrowings, with net debt falling to N46.5 billion from N475.1 billion at the end of 2025, representing a decline of about 90 per cent.
Gross profit rose by 782 per cent to N1.44 trillion, reflecting stronger production volumes alongside favourable realised crude oil and gas prices.
Commenting on the results, Chief Executive Officer, Adegbite Falade, said the company’s first-half performance reflected higher production, improved operational efficiency and stronger financial resilience.
According to him, the group delivered revenue of N2.49 trillion and EBITDA of N1.39 trillion, with an EBITDA margin of 55.8 per cent, supported by production of 25.2 million barrels of oil equivalent and sustained gas output of 503.2 million standard cubic feet per day.
Falade noted that a firmer commodity price environment contributed to robust operating cash flow of N975.6 billion and helped reduce net debt significantly during the period.
He said: “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 while unlocking its full potential.
“We reaffirm our full-year production guidance of 110,000 to 140,000 barrels of oil equivalent per day and remain committed to operating responsibly in a changing energy landscape while delivering lasting value for our stakeholders.”
