Aradel Holdings Surges by 15% as Shareholders Agree N22 Dividend
Aradel Holdings Plc climbed by more than 15% in the equities market, supported by investors’ buy actions that bolstered the oil and gas index. The oil company share price rose to N530 in the latest upswing, from N460 at the beginning of the trading week. Investors increased their bet on Aradel in anticipation of strong earnings performance amidst its expansion drive.
The oil stock price has been fluctuating negatively since it came to the market for listing. The volatility heated up as investors priced in unimpressive earnings performance in the first quarter of 2025. With stability in the global commodity market, analysts anticipated the company’s earnings would rebound in the second quarter in the absence of significant shock.
Last week, Aradel told the Nigerian Exchange it had obtained shareholders’ approval at the company’s annual general meeting to pay a final dividend.Shareholders gave directors consent to pay a final dividend of N22.00 for every ordinary share. The amount will be paid to shareholders whose names appear in the Register of Members as at the close of business on Tuesday, May 6th, 2025.
Aradel Holdings hinted that the company set aside $20 million to acquire Chappal Energies. The amount caused a decrease in the company’s cash flows from operating activities, according to its earnings results.
In its unaudited report for the first quarter of 2025, it was stated that the company generated cash flows from operations of N30.6 billion in the first quarter of 2025. The amount was 45% below N55.8 billion generated in Q1 2024.
Its earnings was impacted by the non-receipt of crude and gas sales and other proceeds worth N70.3 billion- to be received in Q2 2025—and an increase in restricted cash of $20 million set aside for Chappal Energies acquisition.
In December, Aradel Holdings entered into an agreement to acquire a 5.14 percent equity interest in Chappal Energies, an energy company focusing on investments in deep value and brownfield upstream opportunities within Africa. #Aradel Holdings Surges by 15% as Shareholders Agree N22bn Dividend#
