Aradel Holdings Plc has announced plans to commence gasoline (Premium Motor Spirit – PMS) production at its Ogbele modular refinery in Rivers State by 2027, capitalizing on Nigeria’s deregulated downstream petroleum market.
Speaking on the sidelines of an energy conference in Abuja, Temitayo Ogunbanjo, General Manager of Aradel’s refining unit, stated that the full removal of fuel subsidies and the move toward market-reflective pricing have established a clear commercial path for domestic gasoline refining.
The 11,000-barrel-per-day (bpd) modular refinery currently processes crude into diesel (Automotive Gas Oil), dual-purpose kerosene (DPK), marine gas oil, and naphtha.
Strategic Rationale & European Aviation Fuel Push
The decision to add a catalytic reformer unit for gasoline production aligns with Aradel’s broader strategy to extract maximum value across its fully integrated energy value chain, which spans upstream crude production, midstream refining, and downstream distribution.
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Favorable Macro Drivers: Aradel’s integrated operations have benefited from elevated global energy price volatility triggered by Middle East geopolitical tensions and supply shocks.
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Expanding Beyond 11,000 bpd: Management is actively evaluating feasibility studies to expand the processing capacity of the Ogbele plant beyond its current 11,000 bpd ceiling, assessing crude supply commitments and export logistics infrastructure.
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Jet Fuel Export Strategy: In addition to domestic gasoline supply, Aradel is considering capital allocation into Aviation Turbine Kerosene (Jet-A1) refining to target export opportunities in Europe, where demand for imported middle distillates remains strong.
Aradel Holdings Plc reported a massive expansion in top-line revenue for the first half (H1) of 2026, driven by the consolidation of newly acquired upstream assets, though elevated operating costs and foreign currency translation losses significantly compressed net profit margins.
Gross revenue for the six months through June 30, 2026, surged 576.8% year-on-year to ₦2.49 trillion ($1.81 billion), up from ₦368.09 billion in H1 2025. The revenue leap reflects the financial integration of ND Western Limited (in which Aradel increased its effective stake to 81.67%) and Renaissance Africa Energy Company (53.3% effective equity), alongside stronger realized crude oil and gas pricing.
Despite the top-line growth, net profit margin narrowed to 7.67% from 39.77% in H1 2025. Profit After Tax (PAT) expanded 30.5% to ₦191.04 billion.
However, net profit available to equity holders of the parent company rose by a more modest 6.32% to ₦153.66 billion. The gap was driven by a sharp increase in non-controlling interest allocations, which jumped to ₦37.38 billion, making up 19.5% of PAT, from ₦1.86 billion in the prior-year period following minority equity stakes in the acquired assets.
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