Aradel Holdings Plc has recorded a strong performance posting a 633 per cent surge in revenue to N3.95 trillion in the nine months ended September 30 this year.
The output far higher than the N538.8 billion recorded in the preceding period of last year reflects impact from the consolidation of ND Western and Renaissance higher production and a firmer commodity price environment.
The results also showed IFRS profit after tax of N43.3 billion while an interim dividend of N7.00 per share was declared amounting to approximately N30.4 billion.
Speaking in a joint interview the Managing Director/Chief Executive Officer Mr. Adegbite Falade and Chief Financial Officer Mr. Adegbola Adesina highlighted the impact of tax expense and finance costs on profit margins. Falade said net finance costs of N797.3 billion comprise interest on the consolidated borrowings of ND Western and Renaissance the unwinding discount on decommissioning provisions and the earn out charge (unwinding of contingent consideration) of N529.1 billion. The earnout is payable under Renaissance’s acquisition of SPDC and is linked to the seller’s retained economic interest in a defined perimeter in Renaissance’s assets calculated by reference to the net revenue within that perimeter.
He said although there were ongoing engagements to address the imbalance the earnout will continue to accrue for the remainder of 2026 broadly consistent with the run-rate experienced to date.
Profit before tax increased 154 per cent to N764.7 billion from N300.7 billion in 2025. Tax expense stood at N721.4 billion compared with N55.6 billion in the same period of 2025 reflecting the higher tax rates associated with ND Western and Renaissance.
He said crude oil contributed 69 per cent of revenue gas 26 per cent and refined products five per cent. Cost of sales increased by 652 per cent to N2.29 trillion comprising a N455.8 billion stock adjustment arising from an overlift position higher royalty and statutory payments on stronger crude prices and increased field host-community and well maintenance costs.
Operating profit rose 832 per cent to N1.56 trillion from N167.5 billion in the same period of 2025 supported by other income of N253.1 billion principally crude handling fees from third-party use of the Group’s evacuation infrastructure.
The Group’s strong operating performance in the first nine months of 2026 was its first reporting period with ND Western and Renaissance fully consolidated. Production revenue EBITDA and operating cash flow all increased substantially and the Group ended the period with a net cash position of N532.3 billion.
Falade said the first nine months of 2026 demonstrated what the 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’ he said.
‘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.
‘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’ he stated.