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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.

Non-Controlling Interests represent the effective ownership interests held outside the Aradel Group, comprising a 5.02% stake in Aradel Refineries Limited, an 18.33% stake
in ND Western Limited, and a 46.67% stake in Renaissance Africa Energy Holding Company Limited. The ownership percentages were determined after considering both the Group’s direct and indirect interests in the respective entities, according to Aradel.

Cost Escalation and Infrastructure Charges

Group cost of sales rose 412.4% year-on-year to ₦1.05 trillion, reflecting the significantly larger operating footprint of the consolidated…