…Profit After Tax Jumps 252% to ₦120.3bn as ND Western and Renaissance Consolidation Drives Triple-Digit Growth
Chief Executive Officer, The Aradel Holdings, Mr Adegbite Falade
Aradel Holdings Plc has announced a remarkable financial performance for the first quarter ended March 31, 2026, reporting a 265 per cent increase in revenue to ₦728.5 billion and a 252 per cent rise in profit after tax to ₦120.3 billion, reflecting the first full quarter impact of its enlarged corporate structure following the consolidation of ND Western Limited (NDW) and its majority interest in Renaissance Africa Energy Company Limited.
The unaudited results underscore a transformational phase for Nigeria’s leading integrated indigenous energy company, as the enlarged Group’s earnings, production volumes, and cash flows were fully reflected in its financial statements for the first time.
The development marks a significant milestone in Aradel’s strategic expansion journey and further strengthens its position among Nigeria’s most influential indigenous energy companies.
Speaking on the results, Chief Executive Officer of Aradel Holdings, Adegbite Falade, described the quarter as a defining moment in the company’s growth trajectory.
According to him, the consolidation of ND Western as a subsidiary and the resultant majority stake in Renaissance have substantially enhanced the Group’s operational scale and earnings capacity.
“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,” Falade said.
“Production tripled to 12.9 million barrels of oil equivalent (mmboe), while cash generated from operations increased by 27 times to ₦868.3 billion. Revenue of ₦728.5 billion and profit after tax of ₦120.3 billion demonstrate the strength of our diversified portfolio across upstream, gas and refining businesses and the immediate benefits of our expanded asset base.”
He added that the company’s focus for the remainder of 2026 would be centered on optimizing existing assets, improving operational efficiency, boosting production levels, and diversifying revenue streams.
Strategic Expansion Paying Off
Industry analysts note that the stellar performance validates Aradel’s acquisition-led growth strategy, particularly its successful integration of ND Western and participation in Renaissance Africa Energy Company.
The enlarged Group now enjoys a broader asset portfolio spanning upstream oil production, gas processing, refining, and strategic investments, creating multiple revenue channels capable of cushioning volatility in global energy markets.
Aradel’s production growth to 12.9 mmboe represents one of the strongest quarterly outputs in the company’s history, reflecting increased contributions from newly consolidated assets.
Similarly, cash generated from operations rose dramatically to ₦868.3 billion, providing significant liquidity for future investments, debt management, shareholder returns, and expansion projects.
Renaissance Stake Strengthens Market Position
The consolidation also elevated Aradel’s effective ownership in Renaissance Africa Energy Company to 53.3 per cent, comprising a direct stake of 12.5 per cent and an indirect interest of 40.7 per cent through ND Western.
Market observers believe the development significantly enhances Aradel’s influence within Nigeria’s upstream petroleum sector and provides greater exposure to high-value energy assets.
The Renaissance transaction has been widely regarded as one of the most strategic indigenous energy deals in recent years, strengthening local participation in Nigeria’s oil and gas industry while creating a stronger platform for future growth.
Diverse Portfolio Driving Resilience
Aradel’s strong earnings performance was supported by its diversified operations across several business segments.
Its wholly-owned subsidiary, Aradel Energy Limited, continues to operate key assets including the Ogbele field (PML 14), Omerelu field (PPL 247), Olo and Olo West Marginal Fields, alongside interests in OPL 227.
The Group’s gas business, Aradel Gas Limited, remains a critical contributor, serving as the only Nigerian independent non-joint venture gas supplier to Nigeria LNG with a gas processing capacity of 100 million standard cubic feet per day.
Meanwhile, Aradel Refineries Limited operates a three-train 11,000 barrels-per-day refinery producing Automotive Gas Oil (AGO), Dual Purpose Kerosene (DPK), Marine Diesel Oil (MDO), Heavy Fuel Oil (HFO), and Naphtha.
These integrated operations continue to position Aradel as one of Nigeria’s most diversified indigenous energy companies.
Investors Applaud Strong Earnings Momentum
The impressive first-quarter performance is expected to boost investor confidence in Aradel Holdings following its listing on the Nigerian Exchange (NGX) Main Board in October 2024.
Market analysts believe the company’s robust earnings growth, strong cash generation, expanding asset base, and strategic positioning within Nigeria’s evolving energy landscape could support sustained shareholder value creation.
With global energy demand remaining resilient and domestic gas utilization increasing, stakeholders expect Aradel to maintain positive momentum throughout the remainder of 2026.
The Q1 performance signals not only the successful integration of newly acquired assets but also the emergence of a larger, more diversified energy powerhouse capable of competing effectively within Africa’s rapidly evolving energy sector.
Aradel Holdings Plc recorded a 265% surge in revenue to ₦728.5 billion and a 252% increase in profit after tax to ₦120.3 billion in Q1 2026, driven by the consolidation of ND Western and Renaissance Energy assets.
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