Aradel Holdings Plc has released its unaudited H1 financial statement, reporting a pre-tax profit of N752.71 billion for the six months ended June 30, 2026.

The performance represents an increase of 293% from N191.31 billion recorded in the corresponding period of 2025.

This is according to the company’s unaudited financial statement filed on the Nigerian Exchange (NGX) on Friday, July 31, 2026.

Key Highlights

  • Revenue: N2.49 trillion (Up 577% YoY from N368.08 billion)
  • Gross Profit: N1.44 trillion (Up 807% YoY from N163.16 billion)
  • Operating Profit: N1.06 trillion (Up 790% YoY from N118.62 billion)
  • Pre-tax Profit: N752.71 billion (Up 293% YoY from N191.31 billion)
  • Profit After Tax: N191.04 billion (Up 30% YoY from N146.39 billion)
  • Finance cost: N326.14 billion (Up 2,843% YoY from N11.08 billion)
  • Earnings Per Share: N35.37 (Up 6% YoY from N33.26)

Driving the numbers

Aradel’s performance was driven by a sharp expansion in crude oil production and sales, which remained the dominant contributor to group revenue.

Crude oil generated N1.98 trillion, accounting for approximately 79% of total revenue, while gas contributed N512.10 billion and refined products contributed N129.44 billion.

The crude oil segment alone delivered N545.70 billion in pre-tax profit, making it the largest earnings driver for the group.

Revenue grew to N2.49 trillion from N368.08 billion in the prior-year period, reflecting the impact of expanded operations following recent acquisitions and stronger hydrocarbon production.

Export sales remained dominant, with revenue generated outside Nigeria accounting for approximately N1.94 trillion, representing nearly 78% of total revenue.

Cost of sales increased to N1.05 trillion from N204.92 billion as production volumes rose. Key cost drivers included royalties and statutory expenses of N415.49 billion, depreciation and amortisation of N319.73 billion, and operational and maintenance expenses of N212.73 billion.

Despite these higher costs, gross profit expanded significantly due to stronger revenue growth.

Finance costs rose sharply to N326.14 billion from N11.08 billion, driven primarily by interest expenses on bank borrowings and the unwinding of decommissioning obligations. However, the increase in finance costs was more than offset by the substantial growth in operating profit, allowing pre-tax earnings to almost quadruple year-on-year.

A notable drag on profitability came from other losses, which included a N489.42 billion underlift position and foreign exchange-related losses. Even with these charges, operating profit exceeded N1 trillion due to the strength of the group’s upstream operations.

The balance sheet strengthened during the period. Total assets increased to N10.88 trillion while cash and cash equivalents rose to N1.72 trillion.

Operating activities generated N975.61 billion in cash despite tax payments of N429.88 billion. The company also reduced borrowings through repayments during the period, supporting a lower debt balance compared with year-end 2025.

Balance Sheet

Total External Debt: N1.81 trillion (Down 10% from N2.00 trillion at December 2025)

Total Assets: N10.88 trillion (Up 10% from N9.90 trillion at December 2025)

Cash Balance: N1.72 trillion (Up 14% from N1.50 trillion at December 2025)

Market reaction

Aradel Holdings share closed at N1,526.8 on Friday July 31, 2026, the same amount it has maintained since July 10.

However, the figure marks a 127.88% year-to-date increase from N670 it closed at the end of the year 2025.

What you should know

The H1 2026 performance builds on a robust 2025 result where the company reported a pre-tax profit of N835.0 billion for FY 2025, up 163.60% from N316.8 billion in FY 2024.

The strong bottom line can be attributed to stronger earnings and non-recurring gains tied to its ND Western and Renaissance transactions.

Reflecting this performance, the Board recommended a final dividend of N23.00 per share, bringing the total dividend for the 2025 financial year to N33.00 per share.