Aradel Holdings achieved a net profit of ₦757.3 billion in 2025, a 192.3% increase from ₦259.1 billion the previous year, according to its latest audited report. This record profit was largely fueled by a ₦393.2 billion translation gain from a business combination after acquiring a majority stake in ND Western, an oil drilling firm.
Acquisition of ND Western boosts earnings
Towards the end of 2025, Aradel procured a 40% stake in ND Western, increasing its total shareholding to 81.7%. The deal, involving ND Western under Renaissance Energy Holdings, raised Aradel's stake in Renaissance from 33.3% to 53.3%, making it the majority owner.
Revenue and operating profit growth
Revenue for the period grew by 20.4% to ₦699.4 billion, driven by crude oil exports and refined product sales. Operating profit surged 151.7%, supported by a ₦217.1 billion bargain purchase gain from acquiring the ND Western stake at below fair market value. Share of profit from an associate company rose to ₦109.5 billion, compared to ₦31.6 billion a year earlier.
Fair value loss and profit before tax
The company incurred a ₦106.3 billion fair value loss on step acquisition due to legacy expenses from writing down a carrying amount related to the ND Western asset acquisition. Despite this, profit before taxation climbed 163.6%, and profit after tax jumped to ₦757.3 billion.
CEO comments and dividend proposal
“Our focus in 2026 is on consolidating our expanded portfolio to enhance operational scale, improve efficiency across our assets, increase production and further diversify our revenue base anchored on our long-term ambition to grow the Group’s production to support sustainable, long-term shareholder value,” said Adegbite Falade, the CEO. “Reflecting the strength of our performance and confidence in our outlook, the board is pleased to propose a final dividend of ₦23.0 (US$0.016) per share, taking the total 2025 distribution to ₦33.0 (US$0.024),” he added. The total dividend of ₦33 per share is 10% higher than in 2024 and equates to a potential payout of ₦143.4 billion.
