Aradel Holdings Plc has revealed that its finance costs escalated sharply to N326.14bn for the six-month period ended 30 June 2026, marking a massive surge from the N11.08bn recorded in the corresponding period of 2025.
According to the energy firm’s official financial disclosure, the steep increase was driven primarily by interest expenses on bank borrowings and obligations tied to asset expansion and decommissioning provisions.
Despite the heavy financing obligations, the group delivered a record operational performance.
The Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade, noted that the company delivered a strong first-half performance.
“Revenue of N2,491.5bn and EBITDA of N1,389.2bn, with an EBITDA margin of 55.8 per cent, reflect production of 25.2 mmboe and sustained gas offtake at 503.2 mmscf/d,” Falade said.
He added that a firmer price environment supported performance, generating net cash from operating activities of N975.6bn and a closing cash balance of N1,716.6bn.
The dramatic top-line expansion was spearheaded by crude oil sales, which generated N1.98tn, while gas commercialisation and refined products contributed N512.10bn and N129.44bn, respectively.
Strong operational leverage allowed the company to comfortably absorb the elevated financing costs, as pre-tax profit quadrupled to N752.71bn, up 293 per cent year-on-year.
Aradel’s balance sheet continued to strengthen alongside its operational scaling, with total assets expanding to N10.88tn, while net cash generated from operations reached N975.61bn.
Falade previously noted that Q1 2026 marked a significant milestone as the first full quarter reflecting the earnings impact of the group’s enlarged asset base following the consolidation of NDW and its majority interest in Renaissance, setting the foundation for the group’s robust first-half performance.