Oritsegbubemi Omatseyin
Lagos — Aradel Holdings Plc, has announced its unaudited results for the year ended 31 December 2025.
The Group delivered continued revenue and profitability growth, reflecting sustained momentum across all business segments. Most importantly, the significant growth in profitability underscores the benefits of its value-accretive diversification strategy, with share of profit from associates increasing by 523% to ₦197.0 billion (FY 2024: ₦31.6 billion).
Operating profit declined during the period, primarily due to exceptional, non-recurring items, including crude oil overlifts resulting in ₦34.7 billion stock adjustment expenses, a one-off ₦25.5 billion provision for price-based royalties pending resolution of computation mechanism, and higher staff costs arising from Long-Term Incentive Plan, LTIP, payments.
Aradel Holdings delivered strong top-line growth, with total revenue rising by 20% year-on-year to ₦697.3 billion (FY 2024: ₦581.2 billion), driven by sustained momentum across all business segments.
Revenue from crude oil exports grew by 18% to ₦440.1 billion (FY 2024: ₦373.7 billion), supported by higher production volumes and reliable evacuation through both the TNP and ACE system. Crude sales rose to 4.1mmbbls (FY 2024: 3.1mmbbls), accounting for 63% of the total revenue despite decline in realized crude oil prices.
Refined products revenues increased by 18% to ₦210.8 billion (FY 2024: ₦179.3 billion) representing 30% of total revenue, driven by a 26% rise in sales volume to 302.9 mmltrs (FY 2024: 240.5 mmltrs).
Gas revenues increased by 65% to ₦46.4 billion (FY 2024: ₦28.2 billion), representing 7% of total revenue, driven by higher production volumes despite a decline in realized gas prices to $1.52/mscf compared to $1.66/mscf in FY 2024.
Operating profit stood at ₦272.0 billion, representing a 7% decline from ₦291.4 billion in the prior year, largely due to higher operating costs and lower realized crude oil prices during the period.
Aradel reported profit before tax of ₦463.7 billion up 46% from ₦316.8 billion in FY 2024. Profit after tax for the period was ₦401.2 billion, a 55% increase from ₦259.1 billion in FY 2024, driven by improved tax efficiency, and higher earnings contribution.
Income tax expense for the period was estimated at ₦62.5 billion (Cash Tax ₦74.3 billion and Deferred tax credit ₦11.8 billion), relative to FY 2024 tax expense of ₦57.7 billion.
Total assets grew 495% year-to-date to ₦10.4 trillion (FY 2024: ₦1.7 trillion), primarily attributable to the Company’s consolidation of ND Western and Renaissance following the acquisition of control in both entities.
Operating cash flow stood at ₦209.7 billion (FY 2024: ₦311.9 billion), a decline of 33% due to settlement of income tax liabilities for 2024 Full Year assessment amounting to ₦46.7 billion as well as outstanding receivables for crude oil & gas sales and other proceeds worth ₦108.9 billion (to be received in Q1 2026).
Net cash flow used in investing activities was ₦605.9 billion, up 370.6% (FY 2024: ₦128.7 billion). This increase is mainly driven by expanded CAPEX and strategic investments – additions to PPE, cash-financed investment in Renaissance amounting to ₦20.9 billion in FY 2025, investment in ND Western of ₦430.6 billion and investment of ₦34.1 billion in Chappal Energies.
Net cash flows used in financing activities declined by 293.1% to ₦219.7 billion (FY 2024: (₦113.8 billion)). The movement was primarily driven by additional borrowings of ₦503.8 billion, dividend payment and repayments of borrowings and interests.
Total crude oil and condensate production marginally increased by 3% to 5.16 mmbbls in FY 2025 compared to 5.06 mmbbls in FY 2024. Crude oil production averaged 14,142bbls/day3 , up 3% from 13,751bbls/day in FY 2024, driven by improved well optimization, enhanced efficiency, and operational excellence.
Aradel recorded gas production volumes of 18.76 Bcf in FY 2025, a 59% increase compared to 11.81Bcf in FY 2024. Average daily gas production rose 59% to 51.4mmscf/day4 (FY 2024: 32.4mmmscf) supported by new gas wells and enhanced recovery.
The Company achieved its highest-ever gas production rate of approximately 83.8 mmscf/d, attributable to the gas revamp and expansion project, underscoring Aradel’s growing role in Nigeria’s domestic gas supply and energy transition agenda.
Refined product volumes increased by 18% to 313.4 million litres in FY 2025, up from 264.9 million litres in FY 2024 reflecting improved refinery uptime and expanded capacity. Capacity utilization improved to 49% in FY 2025 from 40% in FY 2024, underscoring further upside potential as well as additional opportunities that exist to further optimize the refinery business.
The Company achieved 10.2 million manhours without a Lost Time Injury across all operated assets during the period, a testament to its robust safety culture and the commitment of its workforce.
Commenting on the results, Mr. Adegbite Falade, Chief Executive Officer Aradel Holdings, said: “Aradel delivered a strong and resilient performance in 2025, reflecting the quality of our asset base, disciplined execution, and the inherent resilience of our diversified energy portfolio. Despite operating in a dynamic environment, we achieved meaningful growth across our upstream, gas, and refining businesses.
“During the year, we advanced our acquisition-led growth strategy with the completion of two landmark transactions: the acquisition of a 33.3% effective equity interest (comprising 12.5% directly by Aradel Energy; and 20.8% indirectly through ND Western Limited) in Renaissance Africa Energy Company Limited, operator of the Renaissance Joint Venture (formerly known as the SPDC Joint Venture), and the purchase of an additional 40% equity interest in ND Western Limited.
“The acquisition of the additional interest in ND Western Limited represents a significant milestone for the Group. It is fully aligned with Aradel’s long-term strategy of disciplined portfolio consolidation, asset base expansion, and sustainable value creation, and it further strengthens our strategic position within Nigeria’s upstream oil and gas sector. The completion of the ND Western transaction increases Aradel’s effective interest in ND Western Limited to 81.67% and the Renaissance Africa Energy Company Limited to 53.33%.
“Looking ahead, our focus in 2026 is on consolidating our expanded portfolio to enhance operational scale, improve efficiency across our assets, increase production and further diversify our revenue base in support of long-term shareholder value.”
