Aradel’s Pre-Tax Profit Rises 323% to N284 Billion in Q1 2026

Aradel Holdings Plc has released its first quarter 2026, ended March 31, 2026, reporting pre-tax profit of N283.84 billion, representing a 322.54% increase from N67.17 billion in Q1 2025 and 34% of 2025 full-year profit.

Revenue grew by 265% YoY, reaching N728.52 billion; the highest quarterly revenue since 2023.

According to the company’s press release, the period marked the first quarter in which the combined business operations of the enlarged Group are reflected in Group earnings and cash flows, marking a step-change in the scale of the business.

Key highlights (Q1 2026 vs. Q1 2025)

             Revenue: N728.52 billion, +264.50% YoY

             Cost of sales: N472.239 billion; +290.35%

             Gross profit: N256.28 billion, + 224.86% YoY

             Operating profit: N372.92 billion, +486.73% YoY

             Profit after tax: N120.29 billion; +251.76% YoY

             Earnings per share: N15.24; +96.14% YoY

             Total external borrowings: N1.78 trillion; -11.18%

             Total assets: N9.06 trillion; -8.46%

             Cash and cash equivalents: N1.60 trillion; +6.36%

             Average production: 141,118 boepd (Up 672% YoY from 18,280 boepd)

             Average crude oil production: 56,510 bopd (Up 276% YoY from 15,000 bopd)

             Average gas production: 507.7 mmscf/d (Up 2,503% YoY from 19.5 mmscf/d)

             Average refined production: 698.3 kltrs per day (Down 21% YoY from 882.0 kltrs per day)

Management commentary:

Commenting on the results, Chief Executive Officer Adegbite Falade said that:

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             “Aradel Holdings’ first quarter results mark an important milestone, the first full quarter in which the earnings and cash flows of our enlarged Group are reflected in our financial statements, following the consolidation of NDW as a subsidiary and our resulting majority interest in Renaissance.”

             “Production tripled to 12.9 mmboe and cash generated from operations rose by 27x to N868.3 billion. “

             “Revenue of N728.5 billion and profit after tax of N120.3 billion demonstrates the strength of our diversified portfolio across upstream, gas, and refining and the immediate benefits of our expanded asset base.”

Driving the numbers

Aradel’s impressive bottom-line performance in Q1 2026 was driven by a combination of record revenue growth and overlift.

             Revenue growth was broad-based, although crude oil remained the largest contributor.

             Crude oil revenue increased by 240.98% to N484.60 billion and accounted for 66.52% of total revenue.

             Gas revenue rose by 4,159.30% to N187.92 billion, contributing 25.80%.

             Refined product revenue increased by 4.99% to N56.00 billion and represented 7.69% of revenue.

The company attributed the revenue increase to higher crude oil production, increased gas volumes, and improved realized crude oil prices.

             Overall production averaged 141,118 boepd, driven primarily by the consolidation of NDW and Renaissance volumes.

             Gas output also benefited from gas-plant revamping, improved pipeline availability, and sustained customer demand.

             Refined production, however, declined because of offtake and feedstock constraints and other operational challenges.

The geographical mix also shows that N484.60 billion, or 66.52% of revenue, was earned outside Nigeria, while N243.92 billion, or 33.48%, was generated within Nigeria.

Beyond the increase in core revenue, other income surged to N208.88 billion from N614.07 million, largely due to N125.18 billion in overlift and N72.73 billion in crude-handling income.

These two items accounted for almost 95% of other income and provided a substantial lift to operating profit, which increased by 486.73% to N372.92 billion.

However, cost growth was significant; cost of sales increased by 290.35% to N472.24 billion, outpacing revenue growth and reducing the gross margin to about 35.18% from 39.47% in Q1 2025.

             Major cost lines included royalties and other statutory expenses of N177.93 billion, depreciation and amortisation of N157.36 billion, operational and maintenance expenses of N95.08 billion, crude oil handling charges of N51.53 billion and staff costs of N37.58 billion.

             General and administrative expenses also increased to N92.24 billion from N15.94 billion.

             Also, higher finance costs and a tax expense of N163.55 billion meant that the profit-after-tax margin eased to about 16.51% from 17.11%, despite the sharp increase in absolute earnings.

             Cash generation was another strong point of the quarter; net cash generated from operating activities rose to N868.33 billion from N30.62 billion.

This was supported by a N336.32 billion decrease in trade and other receivables, a N106.01 billion increase in trade and other payables, and a N22.86 billion reduction in inventories.

The Group recorded a net investing cash outflow of N132.27 billion, including N140.62 billion spent on property, plant and equipment. Cash and cash equivalents consequently increased to N1.60 trillion.

Total assets declined to N9.06 trillion, largely alongside the reduction in trade and other receivables.

             Total borrowings also fell to N1.78 trillion from N2.00 trillion at the end of 2025.

Market reaction

On the 22 June 2026 results-announcement day, Aradel closed at N1,750; unchanged from the preceding Friday’s close. The stock had risen from N1,670 to N1,750 on that Friday, representing a one-day gain of approximately 4.79%.

At N1,750, Aradel delivered a 161% year-to-date gain. However, the stock was down 13.65% month-to-date as of June 22, 2026

Source: Nairametric