After seeing the market value of his stake in Aradel Holdings fall below $230 million in early July, Nigerian businessman and GTBank co-founder Fola Adeola has recovered much of the loss as shares in the energy company rebound on the Nigerian Exchange.

Adeola’s 5.52 percent stake in Aradel, representing 240,002,980 shares, was worth N366.4 billion ($271.4 million) at midday Wednesday, up N60.2 billion ($44.6 million) from N306.2 billion ($223.2 million) on July 2, according to market data.

The recovery follows a 19.7 percent rise in Aradel’s share price since July 2, from N1,275.80 ($0.94) to N1,526.80 ($1.14). The gain has added significantly to the paper value of Adeola’s holding and pushed his stake back above $270 million.

Share recovery lifts Adeola’s stake value

The rebound comes after a sharp selloff in Aradel shares that erased about $130.9 million from the value of Adeola’s stake between May 4 and July 2. On May 4, his 5.52 percent holding was valued at N485.8 billion ($354.1 million), when Aradel shares had gained more than 200 percent and the company’s market capitalization had climbed above $6 billion.

Selling pressure through June and into the first trading session of July sent Aradel’s share price down 37 percent. That decline cut the value of Adeola’s stake by N179.6 billion ($130.9 million) to N306.2 billion ($223.2 million) by July 2, while Aradel’s market cap fell to about $4 billion.

The latest share-price recovery has helped reverse part of that decline as investors respond to Aradel’s strong first-half financial results.

Oil, gas gains lift Aradel’s revenue, earnings

Aradel, one of Nigeria’s leading independent integrated energy producers, reported a sharp increase in revenue for the six months ended June 30, helped by higher oil and gas production, stronger realized prices and a larger asset base.

Gross revenue rose to N2.49 trillion ($1.81 billion), from N368.1 billion ($270 million) a year earlier, according to the company’s financial results. The 577 percent increase reflected higher production volumes and stronger prices. Crude oil averaged $90.40 a barrel during the period, while gas sold for an average of $2.08 per million standard cubic feet.

Higher earnings lift Adeola’s stake in Aradel

Higher revenue lifted Aradel’s earnings. Earnings before interest, taxes, depreciation, and amortization rose to N1.39 trillion ($1.01 billion), from N176.4 billion ($113.8 million), while profit before tax climbed to N752.7 billion ($547.5 million), from N191.3 billion ($123.4 million). Profit after tax increased 30 percent to N191 billion ($139 million).

For Adeola, the stronger results and subsequent recovery in Aradel’s shares have restored a sizable portion of the value lost during the June-to-July market selloff. His stake remains below its May valuation, but the latest gains have taken its value back above $270 million.