Aradel Holdings Reports N259.1 Billion Net Profit, Declares N95.59 Billion Final Dividend

Aradel Holdings Plc has reported a net profit of N259.1 billion in its audited financial results for the year ending December 31, 2024. The company also announced a final dividend of N95.59 billion, translating to N22.0 per share for the year under review.

A breakdown of the financial report shows a significant revenue increase of 162.8% to N581.2 billion from N221.1 billion in 2023. The cost of sales also surged by 185% to N224.6 billion, compared to N78.8 billion the previous year, while gross profit rose to N356.5 billion from N142.3 billion.

Operating profit stood at N291.4 billion, reflecting a 155.5% increase from N114.06 billion in 2023. Finance costs climbed by 89.4% to N22.2 billion, compared to N11.7 billion the previous year. Profit before tax reached N316.8 billion, marking a 182.4% increase from N112.2 billion in 2023, while profit after tax surged by 382.1% to N259.1 billion from N53.7 billion. Earnings per share also soared by 388.9% to N59.35, compared to N12.37 in 2023.

The company recorded an 89.5% year-to-date growth in total assets, reaching N1.7 trillion from N923.4 billion in 2023. Net cash flows used in financing activities rose to N113.8 billion, up 129% from N49.7 billion.

Aradel Holdings CEO, Adegbite Falade, described the company’s performance as exceptional, attributing the 162.8% revenue growth to increased crude oil exports, which accounted for over 64% of total revenue. He cited higher production levels, improved utilization of the Trans Niger Pipeline (TNP), and additional value from the Alternative Crude Evacuation (ACE) system as key factors driving the surge.

He also highlighted the company’s recent acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint Venture, as well as a 5.14% equity stake in Chappal Energies Mauritius Limited, an energy investment firm focused on upstream opportunities across Africa.

Falade further noted the successful completion of Renaissance’s acquisition of Shell Petroleum Development Company of Nigeria (SPDC), a major transaction that strengthens Aradel’s asset base and enhances long-term value creation.

He added that Aradel successfully completed Phase 1 of its four-well turnkey drilling campaign, with Phase 2 commencing with Well 16. The company also expanded its evacuation channels to sustain high production levels and operational efficiency.

Falade emphasized that Aradel’s listing on the Nigerian Exchange (NGX) underscores its growth trajectory, enhances share liquidity, and reaffirms its commitment to long-term shareholder value.