Oil and gas firm Aradel, dropped its audited FY 2025 earnings after trading hours on Friday. Why so late? The firm needed to consolidate its numbers following the acquisition of an additional stake in ND Western.

On face value, you had a big bounce in topline and bottomline. N699 billion in revenue, up almost 20% year on year. Profit after tax up by over 100% year over year.

Management has proposed a final dividend of N23 (bringing total dividend for FY 2025 to N33). Qualification date is July 9, 2026 and payment date is July 31st 2026.

Strip those away though, and there was a drop in bottomline.

Drill down deeper and you find that the crude oil segment which is the biggest by revenue and profit had a sharp drop in profit year on year. 

Go in or sit still

At its current pricing, you can either argue the stock is fairly valued or slightly over priced. Including FY 2025 earnings, and your 5 year earnings CAGR comes in at a bit over 50%. 

Scenario one below would mean the stock is trading a bit over 35 times earnings.

Scenario 2 below would have the stock trading at about 24X. A much lower valuation. 

I think fair pricing is somewhere in between both. Q1 2026 numbers should give a bit more colour. 

Either one accumulates or decides to wait till then.

Going by technical analysis, Aradel is trading in a neutral zone.