Aradel Holdings Plc grew revenue more than sevenfold in the nine months to September 2026, but the expansion did not translate into stronger bottom-line earnings as rising finance costs and tax expenses weighed on profit.
The oil and gas group reported revenue of N3.95 trillion for the nine months ended September 30, 2026, compared with N538.81 billion in the corresponding period of 2025. Gross profit rose to N1.66 trillion from N234.73 billion, while operating profit increased to N1.56 trillion from N167.53 billion.
However, finance costs climbed sharply to N841.13 billion from N21.39 billion, while tax expenses rose to N721.41 billion from N55.56 billion. Consequently, profit after tax fell 82.3 percent to N43.30 billion from N245.13 billion.
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Profit after tax declined by 82.3 percent to N43.30 billion from N245.12 billion, while earnings per share dropped to N32.57 from N55.90.
The increase in finance costs was driven largely by the N529.10 billion unwinding of contingent consideration linked to the acquisitions of ND Western and Renaissance, alongside N251.06 billion in interest on bank borrowings. The unwinding charge is an accounting expense and should not be interpreted entirely as cash interest paid.
The revenue expansion also reflects a significantly larger business following Aradel’s acquisition of ND Western and Renaissance, completed on December 31, 2025. The 2026 figures therefore include businesses that were not consolidated on the same basis in the 2025 comparative period.
The enlarged group’s balance sheet reflected that expansion. Total assets rose to N10.76 trillion at September 2026 from N1.96 trillion a year earlier, while total liabilities increased to N8.81 trillion from N459.56 billion. Shareholders’ equity grew to N1.95 trillion from N1.50 trillion.
Cash and cash equivalents increased to N2.00 trillion from N411.83 billion. However, total borrowings also rose to approximately N1.51 trillion from N206.51 billion, reflecting the group’s larger financing structure.
Cash generation strengthened during the period. Net cash from operating activities reached N2.46 trillion, compared with N205.41 billion in the corresponding nine months of 2025. This was supported partly by a N1.38 trillion increase in trade and other payables, while the group paid N690.32 billion in taxes.
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Investment spending also increased, with purchases of property, plant and equipment rising to N570.64 billion from N116.54 billion. Net cash used in financing activities widened to N1.32 trillion from N54.46 billion, reflecting outflows including interest, dividends, borrowing repayments and contingent consideration payments.
The company is generating substantially more revenue and operating cash, but facing a much heavier finance and tax burden as it integrates its enlarged business.
Aradel Holdings currently trades at N1439.9 and has a market capitalisation of N6.3 trillion; it has remained one of the most performing stocks on the stock exchange, returning 99.9 percent.
