Aradel Outperforms Seplat, Oando With Higher Returns Among Upstream Firms

Aradel Holdings Plc is a low debt, high profit margin firm, and a stable liquidity position makes it the best oil and gas stock, beating peer rivals on all financial metrics investors gauge.

Aradel’s consistent earnings growth and strong operational performance are largely driven by stable average production volume even as global geopolitical tensions continue to drive supply uncertainties and price volatility.

Of course, sagacious investors pay more attention to companies that have got excellent internal efficiency and balance sheet strength than the ones who seek growth through acquisition or business combinations.

Aradel stands out for its exceptional ability to generate substantial profits while generating a high profit margin that indicates its success and financial health.

Aradel’s profit after tax (PAT) of N146.23 billion in the first six months of 2025 is 2.31 times peer rival Oando Plc , and 3.43 times Seplat Energy Plc , according to MoneyCentral calculations.

The company’s recorded net profit margin of 39.77 percent in the first six months of 2025. That compares with Seplat Energy, 2.02 percent and Oando’s 3.67 percent, according to data gathered by MoneyCentral.

The oil and gas giant made significant progress on its strategic growth agenda. It successfully completed the acquisition of equity interest in Chappal Energies Mauritius Limited.

“Furthermore, our recent investment in Renaissance Africa Energy Company (Renaissance’), our deemed associate, has yielded positive returns, with our share of its performance featuring in Aradel’s books for the first time,” said the company.

It is important to note that only Aradel in the industry is capable of wiping out all its debts with working capital alone.

For instance, the working capital to debt ratio of 1.93 shows its net current assets cover long term debt (both short and long) 1.93 times. That compares with Seplat Energy‘s ratio of 0.28 times and Oando, -1.25, signaling negative working capital.

While Oando Plc is drowning in debt and reeling from deteriorating balance sheet, Aradal has a debt to equity ratio of 9.50 percent, which makes the company more financially stable and reliable, and thus may qualify for more favorable terms for future loans.

The company trades at a price to earnings ratio of 8.64, which is its stock attractive to value investors who prefer stocks that trades below their intrinsic value in the short run, but delivers higher returns in the long run.

Get More of our proprietary news and analysis as MoneyCentral is now on WhatsApp Channels  Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!