Aradel’s Half-Year Revenue Soars 577% on Higher Output, Iran War

The Nigerian energy group generated N975.6 billion in operating cash, slashed net debt to N46.5 billion and reaffirmed its full-year production guidance.

Aradel Holdings Plc has reported a sharp increase in earnings for the first half of 2026, driven by significantly higher crude oil and gas production, improved pipeline availability and stronger realised energy prices occasioned by the US-Iran war.

The integrated indigenous energy company recorded gross revenue of ₦2.49 trillion for the six months ended June 30, representing a 577 per cent increase from ₦368.1 billion in the corresponding period of 2025, according to its earnings release on Friday.

Earnings before interest, taxes, depreciation and amortisation rose 688 per cent to ₦1.39 trillion, from ₦176.4 billion a year earlier. This translated to an EBITDA margin of 55.8 per cent.

Operating profit climbed 789 per cent to ₦1.06 trillion, compared with ₦118.6 billion in the first half of 2025. The performance reflected higher revenue and ₦149.8 billion in crude-handling income, although underlift expenses and increased general and administrative costs partly offset the gains.

Production jumps more than sixfold

Aradel’s group production averaged 139,500 barrels of oil equivalent per day, up 523 per cent from 22,400 boepd in the same period last year.

Average crude oil production increased by 258 per cent to 55,600 barrels per day, from 15,500 barrels per day.

Gas production recorded an even steeper rise, surging 1,121 per cent to 503.2 million standard cubic feet per day, compared with 41.2 million standard cubic feet per day in the first half of 2025. The company attributed the growth to improved pipeline availability and sustained customer demand.

Total production for the reporting period stood at 25.2 million barrels of oil equivalent.

Aradel said stronger realised prices also supported its financial results. The group achieved an average realised crude oil price of $90.40 per barrel and an average gas price of $2.08 per million standard cubic feet.

Refinery output declines but rebounds in second quarter

Despite the broader production growth, Aradel’s refined-products output fell 22 per cent to 126.2 million litres, from 161.4 million litres in the comparable period.

The company blamed the decline on constrained feedstock availability and unplanned plant downtime during the first quarter.

However, output recovered to 67.5 million litres in the second quarter, 15 per cent higher than the 58.7 million litres produced in the first three months of the year. Aradel said measures taken to secure feedstock and restore plant availability supported the recovery.

Operating cash flow approaches ₦1tn

Net cash generated from operations rose nearly sevenfold to ₦975.6 billion, from ₦140.8 billion in the first half of 2025, demonstrating the cash-generating capacity of the enlarged group.

Cash and cash equivalents stood at ₦1.72 trillion at the end of June, up 14 per cent from ₦1.50 trillion as of December 31, 2025.

Aradel also reduced its net debt by about 90 per cent to ₦46.5 billion, from ₦475.1 billion at the end of 2025.

Chief Executive Officer Adegbite Falade described the results as a strong first-half performance, saying the company’s expanded asset portfolio had created additional opportunities to generate cash and improve shareholder returns.

“Our priorities for the second half of the year are unchanged: optimising our enlarged portfolio and improving operational efficiency,” Falade said. “Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders, and unlocking that potential is our main focus.”

Full-year guidance maintained

Aradel reaffirmed its full-year production guidance of 110,000 to 140,000 barrels of oil equivalent per day.

The company said it would remain focused on operational efficiency, responsible energy production and sustainable value creation for shareholders and other stakeholders.

Aradel operates through subsidiaries and strategic holdings spanning upstream oil and gas production, gas processing, refining and energy investments. Its portfolio includes Aradel Energy Limited, Aradel Gas Limited, Aradel Refineries Limited and Aradel Investments Limited.

The group also owns an 81.67 per cent stake in ND Western Limited and has a total economic interest of 53.3 per cent in Renaissance Africa Energy Company, comprising a 12.5 per cent direct holding and a 40.8 per cent indirect interest through ND Western.