Nigeria’s Aradel posts $1.8 billion revenue as first-half production surges 523%

Nigeria’s integrated independent energy producer Aradel Holdings Plc reported a sharp increase in first-half revenue in 2026 as a surge in crude oil and gas production, stronger realized prices and a larger operating base lifted earnings. According to the company’s unaudited financial results, revenue for the six-month period rose above $1.8 billion.

The Lagos-based company posted gross revenue of N2.49 trillion ($1.81 billion) for the six months ended June 30, up from N368.1 billion ($270 million) a year earlier. The 577-percent increase was driven by higher production volumes and stronger realized prices, with crude oil averaging $90.4 per barrel and gas selling at $2.08 per million standard cubic feet.

Production surge drives stronger earnings

The stronger revenue fed through to the rest of the company’s earnings. Operating profit rose to N1.06 trillion ($767.5 million) from N118.6 billion ($76.5 million) in the first half of 2025, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased to N1.39 trillion ($1.01 billion) from N176.4 billion ($113.8 million). Profit before tax climbed to N752.7 billion ($547.5 million) from N191.3 billion ($123.4 million), while profit after tax increased 30 percent to N191 billion ($139 million).

The earnings growth came as production expanded significantly following the company’s enlarged asset base. Average production reached 139.5 thousand barrels of oil equivalent per day, compared with 22.4 thousand barrels a year earlier. Average daily crude oil production increased 258 percent to 55.6 thousand barrels from 15.5 thousand barrels, while gas production rose 1,121 percent to 503.2 million standard cubic feet per day from 41.2 million. The company attributed the increase to improved pipeline availability and sustained customer demand.

Refining operations, however, remained under pressure. Refined product output fell 22 percent to 126.2 million liters from 161.4 million liters after feedstock constraints and unplanned refinery downtime during the first quarter. Production improved in the second quarter, rising to 67.5 million liters, 15 percent above first-quarter levels, following measures to improve feedstock supply and plant availability.

Assets, equity post steady growth

Founded in 1992 and listed on the Nigerian Exchange (NGX) in October 2024, Aradel has become one of Nigeria’s largest integrated independent energy companies. The group operates through subsidiaries including Aradel Energy, Aradel Gas Limited, Aradel Refineries Limited and Aradel Investments Limited, while also holding interests in ND Western and Renaissance Africa Energy.

The company’s stronger operating performance also improved its financial position. Net debt declined 70 percent to N46.5 billion from N475.1 billion at the end of December, supported by higher cash generation. Total assets increased to N10.88 trillion ($7.95 billion) as of June 30 from N9.87 trillion ($6.89 billion) at the end of 2025. Shareholders’ equity edged up to N2.17 trillion ($1.63 billion) from N2.15 trillion ($1.5 billion), while retained earnings rose to N1.16 trillion ($1.06 billion) from N1.01 trillion ($950.3 million).

Chief Executive Officer Adegbite Falade said the company’s expanded portfolio continued to generate stronger cash flow while creating opportunities to improve operating efficiency. He said Aradel will remain focused on optimizing its enlarged portfolio, improving operational efficiency and delivering stronger cash flow and returns to shareholders during the second half of the year. The company reaffirmed its full-year production guidance of between 110,000 and 140,000 barrels of oil equivalent per day.