Aradel Profit Swells 192% on Transformational Nigeria M&A Deals, Proposes ₦23 Final Dividend

Aradel Holdings Plc, Nigeria’s leading integrated indigenous energy company, reported a 192% surge in full-year net income after pulling off a series of landmark acquisitions that have completely reshaped its growth trajectory and handed it a ₦10 trillion balance sheet.

Profit after tax for the twelve months ended Dec. 31, 2025, rose to ₦757.3 billion ($486 million), up from ₦259.1 billion a year earlier. The Lagos-listed independent energy platform proposed a final dividend of ₦23.0 per share, bringing its total FY 2025 payout to ₦33.0 per share.

The explosive growth highlights a pivotal moment for Nigeria’s domestic energy sector, where local companies are rapidly scaling up to assume control of onshore and shallow-water assets legacy international majors are divesting.

2025 was a transformative year for Aradel, defined by landmark acquisitions that reshaped its growth trajectory. The Group completed the acquisition of an additional 40% interest in ND Western Limited (ND Western), bringing its total effective equity in Renaissance Africa Energy Company (Renaissance) to 53.3% post-acquisition. The transaction significantly expanded the Company’s reserves, production base and operational footprint, positioning Aradel for materially greater scale.

The Renaissance Consolidation

Aradel’s transformational year was anchored by acquiring an additional 40% interest in ND Western Limited. This lifted its total effective equity in Renaissance Africa Energy Company to 53.3%, triggering a massive revaluation of its asset base.

Total assets ballooned by 466% to ₦10.0 trillion, up from ₦1.75 trillion in 2024.

“2025 was a defining year,” Chief Executive Officer Adegbite Falade said in a statement. “The consolidation of NDW and Renaissance fundamentally reset the scale of the Company’s balance sheet… their full earnings contribution will be reflected in the Group’s consolidated financial results from 2026 onwards.”

FY 2025 Financial Performance at a Glance

Source: Aradel Holdings Plc, NGX

Revenue grew by 20% to ₦699.4 billion, driven by sustained momentum across all business segments. EBITDA increased by 119% to ₦815.0 billion compared to ₦372.0 billion in FY 2024. Operating profit increased by 152% to ₦733.6 billion, driven by gain on bargain purchase and translation gain on business combination.

Digging Into the Financials

While the top-line performance is striking, a closer look at the operating profit reveals that non-recurring paper gains from M&A accounting did heavy lifting.

Operating profit surged 152% to ₦733.6 billion, but this was driven predominantly by two one-off items related to the ND Western and Renaissance combinations:

• A ₦217.1 billion gain on bargain purchase, representing asset values acquired above the price paid.

• A ₦393.2 billion currency translation gain reclassified out of other comprehensive income into the income statement.

Combined, these non-cash accounting adjustments accounted for roughly 83% of reported operating profit.

On the operational side, expenses also escalated. Aradel absorbed a ₦40.2 billion crude overlift stock adjustment, a ₦25.5 billion one-off royalty provision, and ₦48.5 billion in staff costs linked to its long-term incentive plan. Maintenance costs spiked 73%, reflecting a broader, heavier infrastructure footprint.

Furthermore, because the acquisitions were tied up late in the year, the underlying earnings of the newly acquired entities were booked under “share of profit from associates” (which rose 246% to ₦109.5 billion) rather than being fully consolidated into top-line revenue.

Operational Highlights