Acquisition costs, debt squeeze oil firms’ N525bn profit growth

Detailed summary

Nigeria’s listed oil and gas companies generated substantially higher revenue in the nine months of 2026, but the expansion did ...

Nigeria’s listed oil and gas companies generated substantially higher revenue in the nine months of 2026, but the expansion did not translate into stronger combined profits as acquisition-related charges at Aradel Holdings and financing costs at Oando weighed on earnings.

Across seven listed companies in the Oil and Gas sector — Seplat Energy, Aradel, Oando, TotalEnergies Marketing Nigeria, Conoil, Eterna and Japaul Gold — combined revenue increased by approximately 58.6 percent to N11.81 trillion from N7.45 trillion in the corresponding period of 2025.

However, combined profit after tax fell 9.6 percent to N525.3 billion from N581.3 billion, showing that the growth in sales was not matched by an equivalent improvement in earnings.

The decline was concentrated in two companies. Aradel’s profit fell by N201.8 billion, while Oando recorded a reduction of N94.8 billion.

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