SAT AUG 01 2026-theGBJournal| Aradel Holdings Plc posted a surge in first-half earnings on Friday after its expanded upstream portfolio sharply increased oil and gas production, lifting revenue almost seven-fold and accelerating cash generation despite weaker refining output.
The indigenous integrated energy company reported gross revenue of ₦2.49 trillion for the six months ended June 30, up 577% from ₦368.1 billion a year earlier, as higher production volumes combined with stronger realised crude oil and gas prices to drive earnings.
The performance marks one of the strongest half-year results among Nigeria’s listed energy companies, reflecting the transformational impact of the group’s enlarged asset base.
Operating profit climbed 789% to ₦1.06 trillion, while EBITDA rose 688% to ₦1.39 trillion, highlighting the operating leverage created by higher production.
The company realised an average crude oil price of $90.4 per barrel and an average gas price of $2.08 per million standard cubic feet during the period.
The biggest contributor to the earnings jump was production. Group output averaged 139,500 barrels of oil equivalent per day (boepd), compared with 22,400 boepd in the corresponding period of 2025.
Average crude oil production increased 258% to 55,600 barrels per day, while gas production surged more than 11-fold to 503.2 million standard cubic feet per day, supported by improved pipeline availability, stronger customer demand and the contribution from newly integrated assets.
The stronger production profile translated into significantly higher cash generation. Net cash generated from operations rose to ₦975.6 billion, nearly seven times the level recorded a year earlier, while cash and cash equivalents increased to ₦1.72 trillion at the end of June from ₦1.50 trillion six months earlier.
The stronger cash position also enabled Aradel to materially improve its balance sheet. Net debt fell 70% to ₦46.5 billion from ₦475.1 billion at the end of 2025, giving the company greater financial flexibility to fund future investments, manage commodity price volatility and pursue growth opportunities.
The refining segment, however, remained a drag on overall operations. Refined product output declined 22% to 126.2 million litres, reflecting feedstock constraints and unplanned maintenance shutdowns during the first quarter.
Operational performance improved during the second quarter, with refined product output rising 15% to 67.5 million litres from 58.7 million litres in the preceding quarter after the company secured additional feedstock supplies and restored plant availability, suggesting the worst of the operational disruption may have passed.
The results reinforce Aradel’s strategy of building a diversified integrated energy business with exposure across upstream production, gas and refining.
The growing contribution from gas also reflects rising domestic demand and Nigeria’s increasing focus on natural gas as a transition fuel and industrial feedstock.
Chief Executive Officer Adegbite Falade said management’s priority for the second half would be extracting greater value from the company’s expanded portfolio while improving operating efficiency.
“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,” Falade said.
The company maintained its full-year production guidance of 110,000 to 140,000 barrels of oil equivalent per day, signalling confidence that operational momentum will be sustained through the remainder of the year despite an evolving energy market.
“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.
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