Aradel Holdings Plc recorded a strong nine-month performance, with net income rising to N245.1 billion as of September 30, 2025. This represents a 122 percent increase from the N110.6 billion reported in the same period last year.
In dollar terms, profit grew 79 percent to $159.2 million, up from $88.8 million in 2024.
The group also announced an interim dividend of N43.4 billion for the period. This is 25 percent higher than the N34.6 billion declared in 2024. However, the dividend payout ratio dropped from 31 percent to 17.4 percent, indicating that Aradel is retaining more earnings to fund its investment drive.
Strong revenue as crude oil drives earnings
Revenue rose 43 percent to N538.8 billion from N377.6 billion a year earlier. Higher oil prices and stronger production volumes were key growth drivers.
Despite the revenue surge, operating profit slipped by 1 percent to N167.5 billion, compared to N169.1 billion in 2024. However, nine-month EBITDA was N261.5 billion, up from 2024’s N238 billion, as rising administrative and salary costs were not sufficient to offset the top-line gains.
Crude oil sales remained Aradel’s largest income source. The segment generated N436.8 billion in revenue, with N163.9 billion in net income and a profit margin of 37.5 percent.
Refined products contributed N169 billion in sales and N45 billion in profit, with a margin of 26.7 percent. The refining business continues to strengthen as local demand for petroleum products grows.
Administrative expenses rose sharply by 223 percent to N81.2 billion, up from N25.1 billion in 9M 2024. This was driven by share-based payments worth N37 billion to employees during the nine months. The payment was part of Aradel’s reward and retention plan following its corporate restructuring.
Staff salaries also increased 70 percent year-on-year to N13.2 billion, from N6.7 billion in the corresponding period of 2024.
Aradel maintained a healthy cash position despite higher costs. Net operating cash flow stood at N205.4 billion, down slightly by 4 percent from N213.5 billion in 2024.
The group also took on new borrowings of N149 billion but ended the period with a net cash position of N193 billion. This demonstrates strong liquidity and prudent financial management.
Investment and expansion strategy
Aradel spent N116.5 billion on capital projects during the period. The funds were used to develop assets and boost production efficiency.
The group also invested an additional N71.9 billion in Renaissance Africa in 2025, even as it increased its equity stake in ND Western. Before the ND Western transaction, Aradel held a 33.3 percent interest in Renaissance, comprising a 12.5 percent direct stake and a 20.8 percent indirect stake through ND Western.
With its ownership in ND Western rising from 41.67 percent to 81.67 percent, Aradel is now expected to hold a controlling stake in Renaissance Africa. The move could deepen its presence across the upstream and midstream oil sectors.
In its latest financials, the carrying value of Aradel’s direct investment in Renaissance stood at N127.9 billion, which includes N41.4 billion in profit share. The carrying value of Aradel’s 41.67 percent in ND Western is also put at N551.5 billion.
The company spent N34.6 billion in acquiring a 6 percent in Chappal Energies, while spending N1.6 billion in acquiring further equity in Ever Oil & Gas Depot, a tank farm in Port Harcourt.
Analysts expect the company’s balance sheet to reflect these acquisitions in the coming quarters as the new acquisitions begin to contribute more earnings.
