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Early gains from Aradel Holdings’ purchase of an additional 40 per cent stake in oil driller ND Western at the tail end of 2025 delivered the income that helped the energy company record a 54.9 per cent leap in profit for the year.
The N201 billion ($133 million) provisional gain, earned as a bargain purchase from acquiring that asset at a cost lower than its fair market value, provided a major boost after a 21.5 per cent drop in gross profit.
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Turnover jumped to N697.3 billion during the period from N581.2 billion, but galloping costs wore much of that away, its financial statements released on Tuesday showed.
Aradel announced last December completed the share acquisition in ND Western, which holds a 45 per cent participating interest in oil mining lease (OML) 34, from Geneva-based Petrolin Trading Limited. The buyout increased its initial 41.7 per cent interest to 81.7 per cent, conferring it with a majority ownership status in the entity.
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In another transaction in March, Aradel announced that Renaissance Africa Energy Holdings, in which it now holds a 53.3 per cent stake, had closed a deal allowing it to acquire Shell’s onshore assets in Nigeria for $2.4 billion.
Expansion plans have lately relied on an acquisition-driven strategy to scale up operations, rather than taking on greenfield projects.
The company’s share of profit in associates accelerated by 523 per cent to N197 billion during the review period as its diversification push continued to pay off.
Profit before tax climbed 46.4 per cent to N463.7 billion, while profit after tax advanced to N401.2 billion from N259.1 billion.
The additional equity acquisition in ND Western Limited aligns with “Aradel’s long-term strategy of disciplined portfolio consolidation, asset base expansion, and sustainable value creation, and it further strengthens our strategic position within Nigeria’s upstream oil and gas sector,” CEO Adegbite Falade said.
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“Looking ahead, our focus in 2025 is on consolidating our expanded portfolio to enhance operational scale, improve efficiency across our assets, increase production and further diversify our revenue base in support of long-term shareholder value,” he added.
Total assets grew roughly sixfold to N10.4 trillion within the period, driven by increased investment in property, plant and equipment.
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