Aradel Holdings Gains 5% Amidst Missed Regulatory Filing
Aradel Holdings Plc added 5.3% to its market value amid a surge in demand for oil stocks; its price appreciation was primarily driven by volume, despite a missed regulatory filing. Trading data from the Nigerian Exchange (NGX) showed that the volume of Aradel shares transacted was moderate.
The company’s share price climbed to N1,933.80 kobo on Friday, as 2.658 million units, valued at N4.957 billion, were executed in the open market. Aradel has seen significant gains since the earnings release, as investors continue to price the company’s growth outlook.
At the close of the trading session last week, the stock market value of Aradel Holdings Plc’s 43.44 billion outstanding shares increased to N8.402 trillion. The company has not released its audited financial statement for 2025, and Q1 2026 results are also overdue as required by regulatory authorities.
Aradel Holdings Plc delivered a 51.1% year-on-year growth in earnings to $264.6 million, according to an unaudited financial statement released for the year 2025.
Analysts noted that the company’s earnings surge was driven by a 507.6% year-on-year growth in share of profits from associates (ND Western Limited (NDW) and Renaissance Africa Energy Company (RAEC)), which more than offset a decline in operating profits.
Aradel Holdings completed the acquisition of an additional 40.0% stake in NDW, increasing its effective stake in the company to 81.67% and in RAEC to 53.3%.
The group reported that its revenue surged by 17.0% year on year to $459.6 million, supported by increases across key product lines. The revenue breakdown showed that Crude oil sales climbed 14.9% to $290.1 million, refined product sales rose 14.6% to $138.9 million, and gas sales grew 60.7% to $30.6 million.
The group’s crude oil production averaged 14.1 kbopd, an increase of 3.0%, following improved well optimisation and enhanced efficiency, and this offset a 14.6% decline in average realised prices to $70.30 per barrel.
Gas volumes benefited from new gas wells and improved recovery, with average daily production rising 58.6% YoY to 51.4 MMscfd. The company also achieved a record daily output of 83.8 MMscfd during the year, attributable to its gas revamp and expansion project.
The refined product sales were also supported by an 18.3% YoY increase in volumes to 313.4 million litres, reflecting improved refinery uptime, expanded capacity, and better capacity utilisation (up to 49.0% in FY’25). Reported volumes excluded Aradel’s effective interests in NDW and RAEC.
The group’s cost of Sales (CoS) rose considerably faster than revenue, inching up 81.2% year on year to $275.1 million. Analysts said the increase stems from a surge in production-related costs.
Crude oil handling charges and depreciation & amortisation amounted to $130.9 million, an increase of +11.6% from the equivalent period in 2024. Dangote Refinery Ends Nigeria’s Era of Fuel Import Dependence, Boosts GDP, FX Earnings — EIU
