Geopolitical Shock Drives Crude Price Rally
The military campaign involving the United States, Israel, and Iran triggered a sharp rally in global oil prices during the first half of 2026. Brent crude briefly touched $118 per barrel in late March before easing to around $85 per barrel by the end of June. This favorable pricing environment significantly boosted the financial performance of Nigeria's listed upstream operators.
Collectively, Seplat Energy Plc, Aradel Holdings Plc, and Oando Plc generated N7.05 trillion in revenue, N1.51 trillion in pre-tax profit, and N485.1 billion in profit after tax. Individually, Seplat led the revenue table with N2.50 trillion, closely followed by Aradel at N2.49 trillion, and Oando at N2.06 trillion.
Operational Gains and Revenue Breakdown
Higher crude prices were amplified by stronger production profiles and improved operating efficiency across the three companies. Seplat increased its total production to 139,509 barrels of oil equivalent per day (boepd) while expanding its Natural Gas Liquids output. Aradel delivered dramatic operational growth following the consolidation of its ND Western and Renaissance transactions, with crude oil generating N1.98 trillion (79% of group revenue) and exports representing nearly 78% of total sales.
Oando's upstream business also benefited from improved exploration and production performance. However, the company continued to rely heavily on its lower-margin Supply and Trading business, which contributed over 83% of its total revenue.
Divergent Profitability and Balance Sheet Strength
While revenues rose across the board, profitability varied. Seplat's pre-tax profit rose 74.1% to N790.4 billion, and its profit after tax surged 430.3% to N225.5 billion, supported by lower production costs and declining finance expenses. The company ended June with N598.3 billion in cash and reduced its debt by repaying US$200 million of APF borrowings.
Aradel's pre-tax profit almost quadrupled to N752.7 billion, though its after-tax profit grew by a modest 30% due to finance costs surging to N326.1 billion. Nevertheless, Aradel strengthened its balance sheet, increasing its cash balances to N1.72 trillion and total assets to N10.88 trillion. Oando cut its pre-tax loss by 77.5% to N32.84 billion, with profit after tax rising 8.3% to N68.56 billion. Oando improved its cash balance to N544.9 billion, though it still faces negative shareholders' equity of N530.5 billion and a working capital deficit exceeding N3 trillion.
NNPC Profit Drops Despite Market Boom
In contrast to the private operators, state-owned NNPC Limited reported a 35.4% decline in profit after tax, falling to N2.28 trillion in H1 2026 from N3.53 trillion in H1 2025. This represents a N1.25 trillion drop compared to the corresponding period of 2025.
The decline occurred despite a steady improvement in NNPC's monthly earnings during the period. The state oil firm's monthly profits rose from N136 billion in February to N535 billion in June, which marked its strongest monthly performance of the year.
Equity Investors Remain Cautious
The stock market has been slow to price in these blockbuster earnings, with share prices remaining relatively stagnant. Aradel's share price, which opened the year at N679.9, fell to N1,275.50 on July 1, rose to N1,549.80 on July 9, and moderated to N1,526.80 on July 10, remaining flat since then.
Seplat's share price depreciated to N11,363.90 after peaking at N11,600 on May 8, having opened the year at N5,610. Oando suffered the worst decline, touching its lowest point of N34.85 on August 3, down from its June 13 peak of N56.75, after opening the year at N40.20 per share.
