Business
Aradel reports strong 9-months operating performance
•As production skyrocketed •Returns to net cash
By Emeka Anaeto, Business Editor
Aradel Holdings Plc has reported impressive output growth and financial performance for the period covering first nine months of 2026.
The development followed the consolidation of ND Western and Renaissance into the Group, alongside higher production volumes, which ramped up production to 144.7 kboepd during the period.
Similarly, revenue skyrocketed to N3.95 trillion with EBITDA rising to N2.1 trillion, thus yielding an 53% margin.
Cash generation and balance sheet materially strengthened with net cash from operations of N2.46 trillion thus moving the Group from a net debt of ₦475.1 billion to a net cash of ₦532.3 billion, while providing liquidity for funding capital expenditure, debt service, dividends and ₦543.9 billion of earnout payments.
Profits before tax increased 154% to ₦764.7 billion as against N55.6 billion in the corresponding period of 2025.
However, the Group reported a sharp rise in tax expense to ₦721.4 billion, compared with ₦55.6 billion in 2025, reflecting the higher tax rates associated with the consolidation.
The Group reported profit after tax of ₦43.3 billion, compared with ₦245.1 billion in the corresponding period of 2025.
Excluding the earnout adjustment, profit after tax stood at ₦572.4 billion, representing a 134% increase over the prior year.
The reported earnings were impacted by a ₦529.1 billion earnout charge recognised under the Renaissance acquisition. The Board considers that the operation of the earnout arrangement no longer reflects the balanced participation the parties intended following after-signing developments.
Therefore, along with the other shareholders in Renaissance, the Company is engaging the vendor to address this matter.
The Group Chief Executive Officer, Mr. Adegbite Falade, told Financial Vanguard that he hopes for a resolution before the end of the current financial year. The strong operating performance in the first nine months of 2026 is the first reporting period in which its subsidiary entities, ND Western and Renaissance operations, are fully consolidated.
Speaking to Financial Vanguard at the backdrop of the announcement of the result by the Nigerian Exchange (NGX) during the weekend Mr Falade attributed the performance to enlargement of its assets, improved efficiency and market developments.
He stated: “The first nine months of 2026 demonstrated what our enlarged portfolio can deliver. Group production ran above our full-year guidance range, with strong growth in both crude oil and gas output.
“This drove a step-change in revenue and EBITDA, alongside improved margins. Our
operations generated substantial cash, which allowed us to fund our investment programme, reduce our debt and move the Group from net debt to net cash position.
“We are well underway in constructive engagements with the seller to address the earnout arrangements to ensure our earnings reflect the significantly improved operational performance.
“As a Group we remain committed to creating long term growth and sustainability this is evidenced in the recent major hydrocarbon discovery following successful delivery of the JK-004 exploration well in shallow waters offshore Nigeria, in Oil Mining Lease 74 by Renaissance.
“We also achieved first oil from our recently acquired Olo marginal field. This further deepens our future sustainability by the additional hydrocarbon reserves”.
Looking ahead Falade stated: “Our priorities remain unchanged: optimising our enlarged asset base, improving uptime, growing production, safe operations, deepening the share prosperity model with our host communities, improving tax efficiency and allocating capital with discipline to deliver sustainable value for all our shareholders.”