Aradel Cuts Net Debt by 70 Per Cent as the icompany strengthened its balance sheet in the first half of 2026, reducing net debt to N46.5 billion from N475.1 billion while increasing its cash reserve to N1.72 trillion on the back of stronger oil and gas production and robust operating cash flow.
The energy company reported that net debt declined to N46.5 billion as of June 30, 2026, compared with N475.1 billion at the end of 2025. At the same time, cash and cash equivalents increased 14 per cent to N1.72 trillion, reflecting improved cash generation across its enlarged portfolio.
The stronger liquidity position was supported by a sharp rise in operating performance during the six months.
Aradel generated N975.6 billion in net cash from operating activities, nearly seven times the N140.8 billion recorded in the corresponding period of 2025. The company attributed the improvement to the cash-generating capacity of its expanded operations following higher production volumes and stronger realised crude oil and gas prices.
Revenue surged 577 per cent year-on-year to N2.49 trillion, while EBITDA climbed 688 per cent to N1.39 trillion. Operating profit also rose 789 per cent to N1.06 trillion, reflecting the significant increase in production and crude handling income.
Operationally, the company reported average group production of 139.5 thousand barrels of oil equivalent per day (kboepd) during the period, representing a 523 per cent increase from a year earlier.
Average daily crude oil production rose 258 per cent to 55.6 thousand barrels per day, while gas production increased 1,121 per cent to 503.2 million standard cubic feet per day (mmscf/d). The company said stronger gas output was driven by improved pipeline availability and sustained customer demand.
Despite the stronger operating performance, finance costs increased substantially to N326.1 billion, compared with N11.1 billion in the corresponding period of 2025.
Profit before tax rose to N752.7 billion, while profit after tax increased 30 per cent to N191.0 billion, reflecting the impact of higher finance costs and tax expenses on net earnings.
Commenting on the results, Chief Executive Officer Adegbite Falade said the company’s enlarged portfolio continued to strengthen cash flow generation and shareholder returns.
“Our priorities for the second half of the year are unchanged: optimising our enlarged portfolio and improving operational efficiency. Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders,” he said.
Falade added that Aradel had reaffirmed its full-year production guidance of between 110 and 140 kboepd while remaining focused on responsible operations and long-term value creation
