Nigeria’s energy giant Aradel posts $90 million Q1 profit as new assets pay off

Nigerian integrated independent energy giant Aradel Holdings Plc reported a sharp rise in first-quarter 2026 profit, lifted by the consolidation of newly acquired upstream assets and stronger production, as it delivered its first full results under an expanded group structure.

Profit after tax rose 252 percent to N120.3 billion ($90 million) in the three months ended March 31, compared with N34.2 billion a year earlier. Revenue climbed 265 percent to N728.5 billion ($533.2 million), driven by higher output and the inclusion of ND Western and Aradel’s majority stake in Renaissance Africa Energy Company, now fully reflected in its accounts.

Integrated assets spark major revenue capacity

The company said the year-on-year figures reflect a major shift in scale following the consolidation, which lifted production, cash flow, and revenue capacity across its upstream and midstream operations. Average production rose to 141,118 barrels of oil equivalent per day from 18,280 boepd a year earlier, supported by the newly integrated assets.

Crude oil output increased 276 percent to 56,510 barrels per day, while gas production rose 2,503 percent to 507.7 million standard cubic feet per day, helped by improved facility uptime and stronger demand from customers. Refined output, however, fell 21 percent to 698.3 kiloliters per day due to feedstock availability constraints, offtake limits, and operational interruptions during the period.

Higher volumes and improved pricing supported top-line growth, while cost controls and efficiency gains also fed into earnings. Gross profit rose 225 percent to N256.3 billion ($187.6 million), while EBITDA increased 518 percent to N537.7 billion ($393.5 million). Finance costs climbed to N101.8 billion ($74.5 million) from N5.4 billion a year earlier, reflecting higher borrowing levels and integration-related obligations tied to the enlarged group structure.

Enlarged group portfolio triples production

Cash generation strengthened significantly, with cash from operations rising more than 27-fold to N868.3 billion ($635.4 million) from N30.6 billion ($22.4 million) a year earlier. The company ended the quarter with cash and cash equivalents of N1.6 trillion ($1.17 billion), slightly above the N1.5 trillion ($1.09 billion) recorded at the end of 2025, supporting what it described as a strong liquidity position.

Chief Executive Officer Adegbite Falade said the quarter reflects the first full period of performance under the expanded group. “This quarter marks an important milestone — the first full period in which the earnings and cash flows of our enlarged group are reflected in our financial statements,” he said. “Production tripled and cash generated from operations rose significantly, demonstrating the strength of our portfolio.”

Nigeria’s Aradel trims assets, targets efficiency

Founded in 1992 and listed on the Nigerian Exchange (NGX) in October 2024, Aradel has grown into one of Nigeria’s largest integrated independent energy producers, operating through subsidiaries including Aradel Energy, Aradel Gas Limited, Aradel Refineries Limited, and Aradel Investments Limited, alongside its stakes in ND Western and Renaissance Africa Energy.

For the remainder of 2026, the company said it will focus on improving efficiency across its upstream and gas operations while integrating its expanded asset base. Total assets declined to N9.06 trillion ($6.63 billion) from N9.9 trillion ($7.24 billion) at the end of December 2025, reflecting lower receivables and adjustments in non-current assets. Shareholders’ equity fell to N1.89 trillion ($1.38 billion) from N2.15 trillion.