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Aradel Holdings Plc reported a sharp expansion in both output and earnings for the half year ended June 2026, as the indigenous energy group scaled production and benefited from stronger oil and gas prices.
According to a filing released on the Nigerian Exchange Limited (NGX), its revenue rose by 577 per cent to N2.49 trillion as higher crude oil and gas output, along with firmer realised prices, lifted earnings across the business.
Group production rose more than fivefold to 139.5 thousand barrels of oil equivalent per day (kboepd), compared with 22.4 kboepd in the corresponding period of 2025. Crude oil output climbed 258 per cent to 55.6 kbopd, while gas production surged over elevenfold to 503.2 million standard cubic feet per day, supported by improved pipeline availability and sustained demand.
Aradel said the gas performance reflected improved pipeline availability and sustained customer demand, while the broader production mix helped support stronger revenues and operating profit. Although the company said its refined product output fell 22 per cent year on year to 126.2 million litres because of feedstock constraints and unplanned plant downtime in the first quarter, its second-quarter output recovered to 67.5 million litres, 15 per cent above Q1 levels.
On the financial side, EBITDA rose 688 per cent to N1.39 trillion and operating profit climbed 789 per cent to N1.06 trillion, supported by higher revenue and crude handling income of N149.8 billion.
The company’s realised crude price averaged US$90.4 per barrel, while realised gas price was US$2.08 per mmscf, helping to offset underlift costs and general and administrative expenses. Gross profit also improved sharply, with one report placing it at N1.44 trillion for the half year.
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Aradel’s cash flow also strengthened materially, with net cash from operations reaching N975.6 billion, almost seven times the N140.8 billion recorded in H1 2025. Cash and cash equivalents closed at about N1.72 trillion at June 30, 2026, while net debt dropped 70 per cent to N46.5 billion from N475.1 billion at the end of 2025. That shift points to a much stronger liquidity position and greater flexibility for future investment or shareholder returns.
Commenting on the results, Aradel’s Chief Executive Officer, Adegbite Falade said the group’s first-half numbers reflected production of 25.2 mmboe and sustained gas offtake, adding that the company remains focused on optimising its enlarged portfolio and improving efficiency in the second half.
He also reaffirmed full-year production guidance of 110–140 kboepd, signaling confidence that current operational gains can be sustained through the rest of 2026.
“Our priorities for the second half of the year are unchanged: optimising our enlarged portfolio and improving operational efficiency. Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders and unlocking that potential is our main focus.
We reaffirm our full year production guidance of 110–140 kboepd and remain committed to operating responsibly in a changing energy landscape and to delivering lasting value for our stakeholders”, Falade said.
