Aradel Holdings Plc posted a 55 per cent increase in profit after tax, reaching N401.2bn in its unaudited full-year 2025 results. This profit growth was primarily driven by a 523 per cent surge in earnings from associate companies, which followed major merger and acquisition transactions during the year.

Speaking during a call with journalists, the company’s Investor Relations Manager, Ilobekemen Idiake, said the performance reflected the impact of strategic acquisitions and disciplined execution across the group’s portfolio.

The PUNCH reports that on 13 March 2025, the Renaissance consortium completed the acquisition of 100 per cent of SPDC Limited. Aradel’s effective share was 33.3 per cent at completion, and on 31 December 2025, Aradel completed the acquisition of an additional 40 per cent equity interest in ND Western Limited, which resulted in a material increase in Aradel’s aggregate shareholding in ND Western from 41.67 per cent to 81.67 per cent and its ownership of Renaissance Africa Energy Company Limited from 33.3 per cent to 53.3 per cent.

Speaking during the call, Idiake said, “So the key highlight is that this year we reported strong full-year numbers with 55 per cent growth in profit after tax. This was underpinned by our strong M&A execution and focus on creating long-term value for our stakeholders. So, I’ll talk about our M&A acquisitions first.”

She explained that the two significant transactions which Aradel carried out during the year fundamentally reshaped its earnings profile and contribution from associate companies.

“So, if you’re aware, during the course of the year, Aradel did two significant M&A transactions. The first was on the 13th of March, where we were part of the consortium that acquired 100 per cent of SPDC Limited. Our effective shareholding was 33.3 per cent at completion. And then the second strategic acquisition was the additional 40 per cent equity interest in ND Western, which resulted in a material increase in our shareholding in ND Western from 41.6 per cent to 81.67 per cent. And an indirect ownership in Renaissance Africa Energy grew from 33.3 per cent to 53.3 per cent’, she said.

Idiake said these transactions directly drove a dramatic rise in Aradel’s share of profit from associates, which increased more than sixfold year-on-year.

“So those are the key strategic activities that we did during the year that actually shaped our performance. And you can see that in the increase in profit after tax, which grew significantly. And this was because of the 523 per cent growth in share of profit from associates. So, at the end of this year, our share of profit from associates grew 523 per cent to N197 bn compared to N31.6 bn in 2023. And this was driven by the acquisitions,” she said.

She clarified that while the balance sheets of the acquired entities were consolidated, their income statements were not included due to the timing of the transaction, which closed on the last day of the financial year.

“However, I just want to clarify one thing: because the ND Western acquisition was completed on 31 December 2025, we were not able to consolidate the income statement. What was consolidated was the balance sheet. And that’s why we still recognise a share in profits from associates in 2025. What’s going forward, the impact of the consolidation will be reflected in the subsequent reporting period,” Idiake said.

On revenue performance, she said Aradel recorded solid growth across its core operations, even as operating profit was affected by exceptional and non-recurring cost items.

“Another thing we would like to note is that, yes, our revenues grew, and this is only our direct business. So, our crude oil business, our refinery and our gas business experienced a 20 per cent growth in revenue year on year. There was a slight decline in operating profit, which declined by seven per cent. And this was primarily driven by exceptional non-recurring items,” she said.

Idiake detailed the specific cost items that weighed on operating profit, stressing that they were temporary in nature and not expected to recur.

“So, we had crude oil over-lift that resulted in a N34.7bn stock-adjusted expense. There was a one-off provision of N25.5bn arising from royalty-based payments. So, there’s a pending resolution with the regulators on how it’s computed, and once this is done, this will be addressed. And then higher staff costs arising from the long-term incentive plan. So those are the three items that actually impacted our operating profit,” she said.

Despite these pressures, she said the company’s focus on value creation across its assets ensured strong bottom-line growth.

“But nonetheless, because of our strong drive to create value across the assets we have, we were able to realise profit after tax of over 55 per cent growth. We believe that as we consolidate the opportunities, our assets, and our company to grow stronger and produce higher and better numbers in the future,” Idiake said.

Looking ahead, she said Aradel’s 2026 strategy would centre on consolidation, asset optimisation and scaling up earnings contributions from its expanded portfolio.

“So, our outlook for 2026: we’re focusing on consolidating our portfolio and optimising our assets. And we expect to see the scale benefits through the earnings. And then we’re continuing to emphasise capital discipline and production growth and diversification. So, this is what we’re going to talk about,” she said.

In a statement accompanying the results filed on the Nigerian Exchange Limited, the Chief Executive Officer, Mr Adegbite Falade, said, “Aradel delivered a strong and resilient performance in 2025, reflecting the quality of our asset base, disciplined execution, and the inherent resilience of our diversified energy portfolio. Despite operating in a dynamic environment, we achieved meaningful growth across our upstream, gas, and refining businesses.

“Looking ahead, 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 in support of long-term shareholder value.”