Aradel Holdings Plc has posted a pre-tax profit of N283.84 billion in the first quarter of 2026, marking a 322.54% increase from N67.17 billion recorded in Q1 2025 and representing about 34% of its full-year 2025 profit.
The company's revenue rose 264.50% year-on-year to N728.52 billion, its highest quarterly revenue since 2023, according to the company's financial statement for the period ended March 31, 2026.
The Q1 results represent the first full quarter in which the combined operations of the enlarged group are reflected in earnings and cash flows, following the consolidation of NDW as a subsidiary and the resulting majority interest in Renaissance.
Operating profit surged 486.73% to N372.92 billion, supported by record revenue and a sharp increase in other income, which jumped to N208.88 billion from N614.07 million in Q1 2025. The other income line was dominated by N125.18 billion in overlift gains and N72.73 billion in crude-handling income.
The company booked a tax expense of N163.55 billion for the quarter, contributing to a net profit after tax of N120.29 billion, up 251.76% year-on-year. Earnings per share rose 96.14% to N15.24.
Crude oil remained the largest revenue contributor at N484.60 billion, accounting for 66.52% of total revenue and representing a 240.98% increase. Gas revenue jumped 4,159.30% to N187.92 billion, contributing 25.80%, while refined product revenue edged up 4.99% to N56 billion.
The company attributed the revenue growth to higher crude oil production, increased gas volumes, and improved realised crude oil prices. Average production reached 141,118 barrels of oil equivalent per day, driven by the consolidation of NDW and Renaissance volumes.
Notably, N484.60 billion or 66.52% of revenue was earned outside Nigeria, while N243.92 billion or 33.48% was generated within the country.
Cost of sales rose 290.35% to N472.24 billion, outpacing revenue growth and compressing the gross margin to approximately 35.18% from 39.47% in the prior year. Major cost lines included N177.93 billion in royalties and statutory expenses, N157.36 billion in depreciation and amortisation, and N95.08 billion in operational and maintenance costs.
General and administrative expenses climbed to N92.24 billion from N15.94 billion, while finance costs and the N163.55 billion tax charge weighed on the bottom line, leaving a profit-after-tax margin of about 16.51%, down from 17.11% in Q1 2025.
Cash generation was a strong point, with net cash from operating activities rising to N868.33 billion from N30.62 billion, supported by a reduction in trade receivables and an increase in payables. Capital expenditure on property, plant and equipment amounted to N140.62 billion, while total assets declined to N9.06 trillion.
Total borrowings fell to N1.78 trillion from N2 trillion at the end of 2025, a reduction of 11.18%. Cash and cash equivalents rose 6.36% to N1.60 trillion.
Commenting on the results, Chief Executive Officer Adegbite Falade said the quarter marked an important milestone, with production tripling to 12.9 million barrels of oil equivalent and cash generated from operations rising 27 times to N868.3 billion.
On the Nigerian Exchange, Aradel's share price closed at N1,750 on June 22, the results announcement day, unchanged from the prior session. The stock has gained 161% year-to-date but was down 13.65% month-to-date as of that date.
