Aradel Holdings shares drop 10% as profit falls despite revenue growth

Aradel Holdings Plc shares fell by approximately 10% to N1,296 per share following the release of its nine-month financial results for the period ending September 30, 2026. Although revenue increased significantly to N3.95 trillion from N538.81 billion in the previous year, profit after tax declined by 82.3%, falling to N43.30 billion from N245.12 billion.

The decline in profit was driven by a sharp rise in finance costs and tax expenses. Finance costs rose to N841.12 billion, with N529.10 billion attributed to the unwinding of a contingent consideration related to the acquisition of SPDC by Renaissance. The company reported a loss after tax of N147.74 billion in the third quarter alone.

Aradel is currently seeking a review of the earn-out arrangement linked to the SPDC acquisition. The company stated that the board believes the current arrangement no longer reflects the balanced participation originally intended, as the obligation functions similarly to a revenue royalty that increases with oil prices. Management is engaging with the seller to address these financial pressures.