Nigeria’s Aradel profit jumps to $555 million as gas, oil acquisitions pay off

Nigerian integrated independent energy giant Aradel Holdings Plc posted a strong rise in full-year earnings for 2025, supported by higher production across its oil and gas operations and the consolidation of recent acquisitions that expanded its upstream and downstream footprint.

The Lagos-based energy group reported profit after tax of N757.3 billion ($555.7 million) for the year ended Dec. 31, 2025, up 192 percent from N259.1 billion ($190.1 million) a year earlier. The increase was driven by higher revenue and one-off gains linked to business combinations, including the consolidation of its expanded stake in ND Western Limited and a larger effective interest in Renaissance Africa Energy, where it now holds 53.3 percent.

Revenue rises 20 percent on gas expansion

Revenue rose 20 percent to N699.4 billion ($513.2 million) from N581.2 billion in 2024, reflecting stronger output across its integrated operations. Aradel said 2025 marked a turning point in its structure following the acquisition of an additional 40 percent stake in ND Western, which increased its reserves base and strengthened its production and processing capacity.

Production performance was mixed but broadly higher. Crude oil output rose 3 percent to 14.1 thousand barrels per day, while gas production increased 59 percent to 51.4 million standard cubic feet per day. The company said gas output reached a peak of about 83.8 million standard cubic feet per day during the year, supported by new wells and recovery work.

Downstream operations also improved. Refinery utilization climbed to 49 percent from 40 percent in 2024, while refined product output rose 18 percent to 313.4 million liters. Sales volumes increased 26 percent to 302.9 million liters, reflecting stronger throughput and improved plant availability.

Aradel’s operating profit surges 152 percent

Operating profit rose 152 percent to N733.6 billion ($538.3 million). The figure included a N217.1 billion ($159.3 million) gain on bargain purchase and a N393.2 billion ($288.5 million) currency translation gain tied to acquisition-related accounting effects. Profit from associates also increased 246 percent to N109.5 billion ($80.3 million), helped by contributions from newly acquired interests and improved evacuation through the Trans Niger Pipeline and other crude handling systems.

Chief Executive Officer Adegbite Falade said the acquisitions have reshaped the scale of the business, noting that the full earnings impact from ND Western and Renaissance will begin to reflect more clearly from 2026. He said the company will focus on integrating the expanded portfolio, improving efficiency, and lifting production levels across its assets.

Aradel said its operations across upstream, midstream, and downstream segments remain centered on increasing output, improving refinery performance, and expanding gas supply to Nigeria’s domestic market. It also noted that results included several non-recurring items, including royalty provisions, inventory adjustments, and higher operating costs linked to expanded infrastructure.

Acquisitions drive massive balance sheet growth

On the balance sheet, total assets rose sharply to N9.9 trillion ($7.26 billion) from N1.75 trillion ($1.28 billion) a year earlier, reflecting the impact of acquisitions. Total equity increased to N2.15 trillion ($1.57 billion), while cash and cash equivalents rose to N1.5 trillion ($1.1 billion), supported by inflows linked to investing activities.

Net cash from operating activities fell 42 percent to N179.7 billion ($131.9 million). Investing activities recorded an inflow of N708.9 billion ($520.2 million), driven mainly by business combinations, while financing cash flow also turned positive at N219.6 billion ($161.1 million), supported by new borrowings of N503.8 billion ($370 million).

The board proposed a total dividend of N33 ($0.024) per share for 2025, including a final dividend of N23 ($0.017) per share, up 26 percent in dollar terms from the prior year. The company said the payout reflects stronger dollar-based earnings and improved cash generation over the period.