-
Aradel Holdings and Seplat Energy ended the first half of 2026 with combined assets of ₦19.11tn, reflecting the growing scale of Nigeria’s indigenous upstream oil companies.
-
Aradel accounted for ₦10.87trn of the combined asset base after consolidating major upstream interests, while Seplat’s assets stood at ₦8.24trn as stronger oil prices lifted its earnings.
-
Aradel’s revenue jumped 577 percent to ₦2.49trn, with analysts and industry experts linking the sharp increase largely to the consolidation of newly acquired upstream assets.
August 10, (THEWILL) — Nigeria’s indigenous upstream oil companies, Aradel Holdings Plc and Seplat Energy Plc, ended the first half of 2026 with a combined asset base of ₦19.11 trillion, as acquisitions, asset consolidation and stronger oil prices boosted the scale of their operations.
An analysis of the companies’ unaudited half-year financial statements showed that Aradel accounted for ₦10.87 trillion of the combined assets, while Seplat’s total assets stood at ₦8.24 trillion as of June 2026.
The companies also recorded significant increases in revenue during the period, although the drivers of their growth differed.
Aradel’s revenue surged by 577 percent from ₦368.08 billion in H1 2025 to ₦2.49 trillion in H1 2026. Seplat, meanwhile, recorded a 30.2 percent increase in revenue from $1.40 billion to $1.82 billion.
Aradel’s assets jump after acquisitions
Aradel’s expansion has been particularly striking over the past three years.
Its total assets increased from ₦923.43 billion in 2023 to ₦1.75 trillion in 2024, representing an 89.5 percent increase.
The growth accelerated sharply in 2025, when its asset base climbed to ₦9.90 trillion, representing a 465.5 percent increase in one year.
By June 2026, Aradel’s assets had risen further to ₦10.87 trillion, about 9.8 percent above its December 2025 position.
Overall, its assets increased by approximately 1,077 percent between 2023 and June 2026, with the biggest increase occurring in 2025.
The expansion followed Aradel’s increased ownership of ND Western Limited, which raised its interest to 81.67 percent and resulted in the company consolidating the business in its group accounts.
The transaction significantly increased Aradel’s exposure to OML 34 and the production, revenue and cash flows associated with the asset.
Investment researcher and economist Dr Vincent Nwani described the consolidation as transformational for Aradel.
“Moving to 81.67 percent ownership means OML 34’s volumes and cash flows become majority-owned, boosting reported earnings substantially in 2026”, he said.
Nwani also pointed to Aradel’s indirect exposure to Renaissance Africa Energy Company Limited, where it has a 53.3 percent effective interest following the consortium’s acquisition of Shell’s onshore assets.
READ ALSO: Aradel Profit Jumps 252% as Group Expansion Drives Record Q1 Performance
Bigger assets lift Aradel’s earnings
The enlarged asset base was reflected in Aradel’s operating performance during the period.
Gross profit rose by 782 percent from ₦163.16 billion in H1 2025 to ₦1.44 trillion in H1 2026.
However, profit after tax increased at a much slower pace, rising 30.5% from ₦146.39 billion to ₦191.05 billion.
The gap between the sharp increase in revenue and gross profit and the more modest growth in profit after tax points to the impact of higher costs and other expenses associated with the enlarged business.
Former 11Plc Managing Director and Chief Executive Officer, Adetunji Oyebanji, said the next phase of Aradel’s growth would depend on how effectively it extracts additional production and efficiencies from the assets now under its control.
“When you consolidate, you take on new assets, new fields. There’s also an issue of scale. You get a bigger scale. And with that scale, hopefully, your production level increases because you now have greater efficiencies”, he said.
READ ALSO: Seplat’s Profit Jumps 430%, Declares Special Dividend
Growth faces a higher bar
Adetunji Oyebanji, however, cautioned that Aradel’s exceptional growth rates would not continue indefinitely without further acquisitions or organic expansion.
He noted that once newly consolidated assets are fully integrated and production reaches a plateau, further growth would require additional investments or acquisitions.
Similarly, National President of the Nigerian Association of Liquefied Petroleum Gas Marketers, Edu Inyang, said the available financial data pointed primarily to asset consolidation as the driver of Aradel’s extraordinary revenue expansion.
However, he noted that the absence of detailed production data made it difficult to precisely separate the impact of acquisitions from organic production growth.
READ ALSO: 37 Oil Block Awards Open New Frontiers for Local Content Growth
“Based on the findings, Aradel’s H1 2026 performance appears to have been driven primarily by asset consolidation rather than organic production growth”, Inyang said.
For Aradel, therefore, the scale-up has transformed its balance sheet and earnings profile. The key question going forward will be whether the enlarged asset base can continue generating higher production and cash flows after the initial acquisition-driven growth effect fades.
Ogochukwu Onwaeze is a writer specializing in business and economic journalism. At THEWILL News Media, she translates market trends, financial developments, and policy shifts into clear and engaging stories.
