Aradel Holdings Plc announced a robust financial performance for the first quarter ended March 31, 2026, with its pre-tax profit escalating by 322.54% to N283.84 billion. This figure represents a substantial increase from N67.17 billion recorded in Q1 2025 and accounts for 34% of its full-year 2025 profit.

The company's revenue also saw a significant year-on-year growth of 265%, reaching N728.52 billion, marking its highest quarterly revenue since 2023. This period reflects the first quarter where the combined business operations of the enlarged Group are fully integrated into its earnings and cash flows, indicating a substantial step-change in business scale.

The impressive bottom-line performance was primarily driven by record revenue growth and overlift. Revenue growth was broad-based, with crude oil remaining the largest contributor, increasing by 240.98% to N484.60 billion and accounting for 66.52% of total revenue.

Gas revenue experienced a remarkable surge of 4,159.30% to N187.92 billion, contributing 25.80% to the total. Refined product revenue also increased by 4.99% to N56.00 billion, representing 7.69% of the revenue.

Management attributed the revenue increase to higher crude oil production, increased gas volumes, and improved realized crude oil prices. Overall production averaged 141,118 boepd, largely due to the consolidation of NDW and Renaissance volumes.

Gas output benefited from gas-plant revamping, improved pipeline availability, and sustained customer demand. However, refined production declined by 21% year-on-year to 698.3 kltrs per day from 882.0 kltrs per day, due to offtake and feedstock constraints and other operational challenges.

Geographically, N484.60 billion, or 66.52% of revenue, was earned outside Nigeria, while N243.92 billion, or 33.48%, was generated within Nigeria. Beyond core revenue, other income surged to N208.88 billion from N614.07 million, primarily due to N125.18 billion in overlift and N72.73 billion in crude-handling income.

These two items accounted for almost 95% of other income, significantly boosting operating profit, which increased by 486.73% to N372.92 billion. However, cost of sales grew significantly by 290.35% to N472.24 billion, outpacing revenue growth and reducing the gross margin to approximately 35.18% from 39.47% in Q1 2025.

Major cost lines included royalties and other statutory expenses of N177.93 billion, depreciation and amortisation of N157.36 billion, operational and maintenance expenses of N95.08 billion, crude oil handling charges of N51.53 billion, and staff costs of N37.58 billion. General and administrative expenses also increased to N92.24 billion from N15.94 billion.

Higher finance costs and a tax expense of N163.55 billion meant that the profit-after-tax margin eased to about 16.51% from 17.11%, despite the sharp increase in absolute earnings. Cash generation was a strong point, with net cash generated from operating activities rising to N868.33 billion from N30.62 billion.

This was supported by a N336.32 billion decrease in trade and other receivables, a N106.01 billion increase in trade and other payables, and a N22.86 billion reduction in inventories. The Group recorded a net investing cash outflow of N132.27 billion, including N140.62 billion spent on property, plant and equipment, leading to cash and cash equivalents increasing to N1.60 trillion.

Total assets declined to N9.06 trillion, largely alongside the reduction in trade and other receivables. Total borrowings also fell to N1.78 trillion from N2.00 trillion at the end of 2025.

Commenting on the results, Chief Executive Officer Adegbite Falade stated, “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, following the consolidation of NDW as a subsidiary and our resulting majority interest in Renaissance.”

Falade added, “Production tripled to 12.9 mmboe and cash generated from operations rose by 27x to N868.3 billion. Revenue of N728.5 billion and profit after tax of N120.3 billion demonstrates the strength of our diversified portfolio across upstream, gas, and refining and the immediate benefits of our expanded asset base.”

On June 22, 2026, the results-announcement day, Aradel's stock closed at N1,750, unchanged from the preceding Friday’s close. The stock had risen from N1,670 to N1,750 on that Friday, representing a one-day gain of approximately 4.79%. At N1,750, Aradel delivered a 161% year-to-date gain, although the stock was down 13.65% month-to-date as of June 22, 2026.