By Bamidele Famoofo
WorldStage– Aradel Holdings Plc, one of Nigeria’s biggest indigenous energy companies, carried the momentum of its transformational 2025 into the first quarter of 2026, posting a revenue figure that reflects the full weight of its enlarged operational scale.
Revenue of the former Niger Delta Exploration and Production Plc, surged 264.50 percent to ₦728.5 billion from ₦199.9 billion in Q1 2025, a comparison that is heavily flattered by the fact that the acquired assets were not yet consolidated in the prior year period.
Cost of sales rose 290.35 percent to ₦472.2 billion, outpacing revenue growth and nudging the COGS margin higher to 64.8 percent from 60.5 percent. Gross margin consequently compressed to 35.2 percent from 39.5 percent, and while gross profit still surged 224.86 percent to ₦256.3 billion.
The operating line, however, received a significant boost from other income of ₦208.9 billion up from a negligible ₦614 million, which more than offset a 478.54 percent jump in administrative expenses to ₦92.2 billion. Profit from operating activities consequently leapt 486.73 percent to ₦372.9 billion, with operating margin widening to 51.2 percent from 31.8 percent.
Furthermore, finance costs surged 1,774.74 percent to ₦101.8 billion, reflecting the full debt servicing burden of the acquisition financing now running through the income statement. Net finance costs ballooned to ₦89.1 billion from just ₦1.2 billion. Income tax also jumped 395.93 percent to ₦163.5 billion. The combined effect pulled profit after tax to ₦120.3 billion, which is still a 251.76 percent improvement year-on-year, with earnings per share rising 96.14 percent to ₦15.24.
On the balance sheet, borrowings declined 11.18 percent to ₦1.779 trillion and total liabilities fell 7.52 percent. Cash grew modestly to ₦1.600 trillion. The debt-to-equity ratio held steady at 93.9 percent, and shareholders’ equity declined 11.82 percent to ₦1.894 trillion, partly reflecting the heavy tax and finance cost burden of the quarter.
At ₦1,750 per share and a P/E of 114.83x, the market is pricing in a long runway of earnings growth.
