Nigeria’s listed oil and gas companies have delivered one of the strongest earnings performances in recent years. Combined half-year revenue of seven listed operators rose to more than N7 trillion in H1 2026, compared with about N4.3 trillion a year earlier, representing an increase of roughly 66 percent.
At first glance, the numbers suggest a broad-based industry revival. However, BusinessDay’s analysis of company financial statements reveals a sector moving in different directions. Two broad groups are emerging: value creators, which are companies turning growth into profits and cash generation, and leveraged growers, which are expanding rapidly but carrying greater balance-sheet risks.
The difference matters because a larger revenue base does not automatically translate into stronger businesses. In this analysis, value creation is measured by a company’s ability to convert earnings into cash, generate returns from invested capital and maintain a financially sustainable balance sheet.
The clearest example is Aradel Holdings. Barely two years after joining the Nigerian Exchange, Aradel has emerged as one of the fastest-growing companies in Nigeria’s upstream oil sector. Revenue increased from N370 billion in H1 2025 to N2.49 trillion in H1 2026, while gross profit expanded nearly nine-fold to N1.44 trillion. Profit before tax reached N752.7 billion, placing the company among the top performers in the sector.
