Business
Aradel’s annual profit surges 192% as ND Western, Renaissance Africa’s acquisitions lift earnings
Energy company Aradel Holdings saw its net profit for 2025 increase by 192.3 per cent, compared to what it reported a year earlier, according to its latest audited report, taking its profit after tax to the peak level ever.
The remarkable improvement rested on the ₦393.2 billion translation gain it earned from the business combination it executed last year after acquiring a majority stake in ND Western, an oil drilling firm in which it previously held a non-controlling interest.
Towards the end of 2025, Aradel procured a 40 per cent stake in ND Western in a transaction that took its shareholding in the entity to 81.7 per cent.
The deal involving ND Western, being one of the companies under Renaissance Energy Holdings, raised Aradel’s stake in the latter from 33.3 per cent to 53.3 per cent, making it its majority owner.
Revenue for the period under review grew by 20.4 per cent to ₦699.4 billion, driven by crude oil exports and the sale of refined products.
Operating profit, which was up by 151.7 per cent, derived strength from the ₦217.1 billion earned as a bargain purchase from acquiring the additional stake in ND Western at a cheaper amount than its fair market value.
Share of profit from associate company stood at ₦109.5 billion, compared to ₦31.6 billion a year ago.
However, the company incurred ₦106.3 billion in fair value loss on step acquisition as a result of legacy expenses in respect of the write-down of a carrying amount from the ND Western asset acquisition.
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Profit before taxation climbed by 163.6 per cent, while profit after tax jumped to ₦757.3 billion from ₦259.1 billion.
“Our focus in 2026 is on consolidating our expanded portfolio to enhance operational scale, improve efficiency across our assets, increase production and further diversify our revenue base anchored on our long-term ambition to grow the Group’s production to support sustainable, long-term shareholder value,” Adegbite Falade, the CEO, said.
“Reflecting the strength of our performance and confidence in our outlook, the board is pleased to propose a final dividend of ₦23.0 (US$0.016) per share, taking the total 2025 distribution to ₦33.0 (US$0.024),” he added.
The ₦33 total dividend per share is 10 per cent higher than that of 2024 and is equivalent to a potential payout of ₦143.4 billion.
The earnings’ season is here once more, with the half-year period already gone past and the publication of corporate results set to commence any moment soon.
The largely positive investor sentiment that dominated trade in that period drove a sweeping rally in Nigerian stocks January though June. That positive has made the country’s equity market the best-performing in the world in dollar terms.
If half-year corporate reports come out stronger than they were a year ago, the market could ride on that momentum to turn out a fabulous yield that could meet investors’ expectations in the short term.
“Nevertheless, we expect pockets of bargain hunting to emerge as investors gradually position ahead of the H1:2026 earnings season, particularly in fundamentally sound stocks that have become more attractively valued following the recent market pullback,” analysts at Meristem Securities said in their note to investors last week.
“We also expect companies with strong earnings prospects and attractive interim dividend potential to continue attracting selective buying interest.”
PREMIUM TIMES has assembled some stocks with sound fundamentals, adopting rigorous approaches to save you the risk of picking equities at random for investment.
The pick, a product of an analytical market watch, offers a guide to entering the market and taking strategic positions, with the expectation that selected stocks will record reasonable price appreciation with the passage of time.
This is not a buy, sell or hold recommendation but a stock investment guide. You may need to involve your financial advisor before taking investment decisions.
Zenith Bank
Zenith Bank tops this week’s pick on the basis of its strong fundamentals and for trading below its intrinsic value. The lender’s net profit ratio (NPR) is 21.8 per cent, while the price-to-earnings (PE) ratio is 4.4x. Its 14-day relative strength index (RSI) is 41.6.
Unilever
Unilever makes the selection for its strong fundamentals. The NPR of the consumer goods company is 14.8 per cent, while the PE ratio is 21.4x. Its 14-day RSI is 14.1.
BUA Cement
BUA Cement appears on the pick on the basis of its attractive fundamentals. The NPR of the cement manufacturer is 36.4 per cent, while the PE ratio is 25.5x. The 14-day RSI is 0.
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Coronation Insurance
Coronation Insurance makes the selection by virtue of its strong fundamentals. The NPR of the insurer is 19.8 per cent, while the PE ratio is 8.1x. Its 14-day RSI is 46.2.
UACN
UACN makes the cut based on its strong fundamentals. The NPR of the conglomerate is 2.3x, while the PE ratio is 26.2x. Its 14-day RSI is 53.
The Economic and Financial Crimes Commission, EFCC, has filed a notice of appeal at the Court of Appeal, Abuja, against the judgment of Justice Peter Kekemeke of the Federal Capital Territory, FCT, High Court, Abuja, finding it liable for defaming former Minister of Power, Olu Agunloye over a social media publication of an alleged $6billion Mambilla Power Project fraud.
The Notice of Appeal was filed on Friday, July 10, 2026 by counsel to the EFCC, Wahab Shittu, SAN.
In the appeal contained in Suit No: FCT/HC/CV/1199/2024, the EFCC expressed dissatisfaction with the “whole of the judgment of the High Court of the Federal Capital Territory, sitting at Maitama, Abuja, Coram: Hon. Justice Peter O. Kekemeke, delivered on the 8th day of July, 2026….”
Specifically, the appeal was hinged on 11 grounds and four different orders. The orders the Commission is seeking in the appeal, are orders allowing the appeal, setting aside the whole of the judgment, dismissing Agunloye’s claim before the trial court in entirety and any other order the court may deem fit to make in the circumstances of the appeal.
Justice Kekemeke had declared in his judgment that the EFCC’s publication on Agunloye was false, defamatory and injurious to the former Minister’s reputation and awarded N10 million in damages against the Commission.
Shittu, in the appeal, also filed a stay of execution of the judgment of the trial court.
No date has been fixed for the hearing of the appeal.
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