Nairametrics reported that Aradel generated the highest free cash flow among three major Nigerian oil and gas companies in the first nine months of 2026. The company retained N1.67 trillion after accounting for investment and interest payments, surpassing Seplat’s N912 billion and Oando’s N107 billion. This financial advantage persisted despite Seplat leading in production, which averaged 144,999 barrels of oil equivalent per day, compared with Aradel’s 144,700 and Oando’s 42,985.
The disparity in cash retention stems from differences in operating cash generation and payment timing. Aradel brought in approximately N1.20 trillion more in operating cash than Seplat, a gap that narrowed after investment costs but remained substantial. Nairametrics noted that Aradel’s results now include ND Western and Renaissance, expanding the group’s size, and that the company received an average of $97.50 per barrel for its crude. Additionally, an increase in trade payables added N1.38 trillion to Aradel’s operating cash flow, indicating that some bills remained unpaid during the period.
Seplat’s share price outperformed its peers, rising 175% by November 6, 2026, while Aradel gained 93.4% and Oando fell 17.7%. Seplat used its cash to reduce debt and increased dividends to N240 billion in the first nine months, up from N147 billion a year earlier. The company is also bringing idle offshore wells back into production and began commercial gas sales through the OB3 pipeline in September, providing alternative cash sources if crude prices ease.
Oando experienced a significant operational turnaround, shifting from cash consumption to a surplus of N107 billion. New wells and fewer interruptions lifted production, while the cost per barrel fell by 22%. The company’s trading business is included in these figures, and its shares rose 5.1% on November 6 to N33.10. Nairametrics highlighted that Oando’s next test is maintaining this positive cash flow to pay down debt and potentially resume cash dividends.
For 2027, Aradel faces the challenge of managing acquisition payments, including N544 billion towards Renaissance, while maintaining its cash lead. Seplat must determine if it can sustain dividend funding if oil prices decline, while Oando needs to ensure its cost reductions and production gains continue to generate sufficient cash for debt reduction.