Aradel Holdings Plc has released its unaudited results for the nine months ended 30th September 2025, reporting a pre-tax profit of N300.7 billion, representing a 57% increase from the N191.5 billion reported in 9M 2024.
Post-tax profit also saw a substantial jump of 122%, reaching N245.1 billion, compared to N110.6 billion in the previous year.
Revenue surged by 43%, reaching N538.8 billion, compared to N377.6 billion in the same period last year.
The company’s earnings per share for the period stood at N55.9, up from N25.4 in 9M 2024, reflecting the robust financial performance.
Consequently, the company declared an interim dividend of N10 to be paid on 28 November 2025 to shareholders whose names appear in the Register of Shareholders as at the close of business on 20 November 2025
Key Highlights (9M 2025 vs. 9M 2024):
- Revenue: N538.8 billion (+43% YoY)
- EBITDA: N261.4 billion (+10% YoY)
- Operating Profit: N167.5 billion (-1% YoY)
- Pre-Tax Profit: N300.7 billion (+57% YoY)
- Post-Tax Profit: N245.1 billion (+122% YoY)
- Earnings Per Share: N55.9 (+120% YoY)
- Dividend Declared: N10.00 per share (+25% YoY)
- Crude Oil Production: 15.3kbbls/day (+25% YoY)
- Gas Production: 50.6mmscf/day (+41% YoY)
- Refined Products Production: 235.7 million litres (+40% YoY)
- Total Assets: N1.96 trillion (+12% YoY)
- Total Equity: N1.5 trillion (+7% YoY)
- Borrowings: N206.5 billion (+114% YoY)
- Cash and Cash Equivalents: N411.8 billion (-2.5% YoY)
Commenting on the results, Mr. Adegbite Falade, Chief Executive Officer of Aradel, stated:
“This performance reaffirms our consistent track record of growth and value creation even in a dynamic operating environment. As we celebrate 20 consecutive years of uninterrupted production, we remain proud of how far we have come in building a fully integrated energy company anchored on operational excellence, disciplined growth strategy and prudent financial management.”
Key Drivers
The strong revenue growth was largely driven by an increase in production across Aradel’s core business segments:
- Crude oil production grew by 25%, averaging 15.3kbbls/day, while gas production rose by 41% to 50.6mmscf/day.
- Refined products also experienced a 40% increase, totaling 235.7 million litres.
These operational improvements helped the company capture higher sales volumes despite fluctuating global energy prices.
Cost:
Aradel’s Cost of Sales stood at N304.1 billion for the period, up from N166.8 billion in 9M 2024, reflecting a higher cost structure driven by increased production.
- As production levels rose across oil, gas, and refined products, the associated costs, including labor, maintenance, and materials, naturally followed suit.
- Additionally, the company faced increased depreciation expenses tied to its growing asset base.
Gross profit
Despite the increase in cost of sales, gross profit rose to N234.7 billion, reflecting an 11% increase from N210.8 billion in 2024.
- This growth in gross profit, however, was somewhat tempered by the drop in gross profit margin, which decreased to 44% from 56% in the previous year.
- The decline in margin was primarily driven by lower realized crude oil prices and the higher operating costs, which ate into the efficiency gained from the rise in revenue.
Thus, while revenue growth was a key contributor to the profit increase, the impact of rising costs on the margin could not be fully offset.
Operating expenses:
Higher operating expenses exerted some pressure on the operating profit, which saw a slight decrease of 1%, settling at N167.5 billion compared to N169.1 billion in 2024.
Net finance cost:
High finance costs contributed to a net finance cost of N6.0 billion, up from a net income of N1.2 billion in the previous year.
- Aradel’s finance income for 9M 2025 increased to N15.4 billion, up from N10.3 billion in 9M 2024, driven by higher interest income from its investments.
- On the flip side, finance costs surged to N21.4 billion from N11.5 billion, reflecting higher interest expenses on borrowings.
Balance sheet
Aradel’s total assets rose by 12%, reaching N1.96 trillion as of 30th September 2025, up from N1.75 trillion at the end of 2024.
- The increase in total assets was driven by the growth in investment in associates, particularly in upstream and midstream energy projects, which contributed to the growth in assets.
On the liability side;
- Total borrowings increased by 114%, reaching N206.5 billion.
- Shareholders’ equity grew by 7% to N1.5 trillion, from N1.4 trillion, supported by strong retained earnings, which stood at N543 billion from N395 billion as of December 2024
Bottom line
Aradel Holdings’ 9M 2025 results highlight the company’s ability to grow revenue and increase profitability, despite facing higher costs and finance expenses.
Strong production growth in oil, gas, and refined products led to robust revenue performance, while the rise in cost of sales and operating expenses had a moderating effect on gross and operating margins.
