Aradel Holdings Grows Profit by 142% to $167.5 million

Aradel Holdings Grows Profit by 142% to $167.5 million

Aradel Holdings Plc grew profit by 142% year on year in 2024, details from its audited financial report submitted to the Nigerian Exchange revealed. The oil company profit was primarily supported by a significant surge in share of profit from associate companies.

The company’s revenue profit rose to $167.47 million at the end of 2024, from $69.112 million in the comparable period in 2023, its audited results showed. The bottom line growth was bolstered by about 15% year on year in revenue in the period. Revenue grew to $392.67 million, from $342.336 million in 2023.

Operating profit came at $201.46 million in 2024, 15% above $138.616 million the company delivered in 2023 as other income line spiked year on year. Aradel Holdings other income gains of $21.46 million, which upturned other loss of $35.67 million in 2023 reflated its performance. This comes in addition to share of profit from an associate of $21.09 million, up by 322.2% from $9.94 million in 2023.

The oil company also enjoyed a lower effective tax rate of 23.0% in the period. Total tax expenses came at about $50 million in 2024, from $64.96 million in the comparable period in 2023.

In a statement, the Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade said, The company sustained its strong operational and financial performance in 2024, building on the improvements achieved in 2023.

“We recorded increased topline and bottomline, driven by significantly higher hydrocarbon production, the successful re-entry of Well 2ST in the Omerelu Field, which resulted in the attainment of First Oil on 31st May 2024 and increased sales volumes from our refinery operations.

“We successfully drilled Wells 14 and 15, marking the conclusion of our Phase 1, four-well turnkey drilling campaign with favourable results. We kicked off the second phase of the drilling campaign with Well 16, which is approaching completion.

“To support the anticipated production growth, we expanded the throughput capacity of our evacuation channels, positioning us to maintain strong output and efficiency levels throughout the year.

“We completed the acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint venture, and entered an agreement to acquire a minority equity interest in Chappal Energies Mauritius Limited – an energy company focusing on investments in deep value and brownfield upstream opportunities within Africa.”

He added that Aradel is also an equity participant in the Renaissance Africa Energy Company Limited, the acquirer of Shell’s 100% equity interest in the Shell Petroleum Development Company (SPDC) Limited, for which Ministerial Consent has been obtained.

Aradel Holdings CEO said these acquisitions further enhance our portfolio and create new opportunities for future production growth.

“They will complement our existing operations and provide significant long-term value, aligning with our broader strategy of expanding our asset base to multiple assets across different locations, and increasing the resilience as well as sustainability of our business.

“Our successful listing on the NGX in October capped a landmark year for the Company and was a significant milestone towards fulfilling our promise to enhance shareholder value.

“For 2025, our plan is to commence the development programmes for Olo and Olo West as well as the Omerelu Fields. These are in addition to optimising production from Ogbele, with a target annual production of 16 kbbls per day and 50 mmscf per day”, Falade told the Nigerian Exchange in a statement. IAS 29: Nigeria Not Hyperinflation Economy – Financial Reporting Council