• "a defining year," adding that Aradel delivered "record revenue and profitability" while executing its most transformational expansion.

He also noted that the full earnings contribution from NDW and Renaissance will be reflected from 2026 onwards.

Driving the numbers

Aradel's revenue growth was supported by all three operating segments, with crude oil remaining the largest contributor.

• Crude oil exports rose 18% to N440.1 billion and accounted for 63% of total revenue, supported by higher production volumes and reliable evacuation through the Trans Niger Pipeline and Alternative Crude Evacuation system.
• Refined products revenue increased 18% to N210.8 billion, contributing 30% of total revenue, as sales volume rose 26% to 302.9 million litres.
• Gas revenue recorded the strongest segment growth, rising 72% to N48.6 billion and contributing 7% of total revenue, supported by higher production volumes despite lower realised gas prices.

However, gross profit declined despite higher revenue, as the cost of sales rose sharply to N391.2 billion from N224.6 billion. This weighed the gross margin and explained why gross profit fell 13.55% YoY even though revenue expanded.

The major lift to earnings came below the gross profit line. Operating profit rose to N733.6 billion, largely due to two non-recurring accounting gains linked to the ND Western and Renaissance business combinations: a N217.1 billion gain on bargain purchase and a N393.2 billion translation gain on business combination.

• Share of profit from associates also rose 246% to N109.5 billion, further supporting pre-tax profit.

Cost pressure remained visible as finance costs increased to N26.5 billion from N22.2 billion, while general and administrative expenses increased to N93.1 billion from N56.2 billion.

The company also recorded non-recurring items including a N40.2 billion crude overlift stock adjustment, a N25.5 billion one-off royalty provision, and N48.5 billion of LTIP-related staff costs.

Balance sheet

The balance sheet expanded significantly following the consolidation of ND Western's assets and liabilities and the carrying value of Aradel's effective interest in Renaissance.

• Total assets rose to N9.9 trillion, while cash and cash equivalents increased to N1.50 trillion.

Net cash from operating activities, however, moderated to N179.7 billion from N311.9 billion, reflecting timing of settlements and working capital movements.

Market reaction

Aradel began the year at N670.00 and closed last trading at N1,70, reflecting 161% year-to-date.