Aradel Holdings’ Revenue Jumps by 260.2% to N268.3bn in First Half 2024

Peter Uzoho

Nigerian integrated energy company, Aradel Holdings Plc, has announced its unaudited half-year (H1) results for the period ended 30 June 2024, with its revenue hitting N268.3 billion.

The company said the revenue represented an increase of 260.2 percent compared to its performance same time last year.

According to the result’s statement sent to THISDAY, Aradel recorded a profit-before-tax of N162.3 billion, up by 482.2 percent posted in H1 2023 at N27.9 billion, with an income tax expense estimate of N57.8 billion, cash tax of N33.2 billion and deferred tax of N24.6 billion.

The first marginal field and modular refinery operator noted that its profit after tax increased by 694.6 percent to N104.4 billion as against H1 2023 record of N13.1 billion.

Aradel added that it achieved a year-to-date growth in total assets of 72.4 percent to N1.5 trillion, compared to the full year 2023 record of N923.4 billion, driven by an increase in property, plant and equipment by 65.2 percent to N633 billion against FY 2023 of N383.4 billion.

This, it explained, was impacted mainly by increased capital expenditure and higher foreign exchange (FX) rates.

However, Aradel stated that it recorded an average realised oil price per barrel of $87.5 compared to H1 2023 of $74.7, while it recorded an average realised gas price per mscf of $1.5 against H1 2023 of $1.8.

The company recorded an underlying cash operating cost (boe) of $20 against the H1 2023 of $20, adding that FX dynamics from the floating of the naira in 2023 played a major role in the financial performance of the company.

“Average exchange rate in H1 2024 was N1,345:US$1, and N482: US$1 in H1 2023. Revenue increased by 260.2 percent to N268.3 billion (H1 2023: N74.5 billion).

“This was driven by: 332.2 percent increase in export crude oil revenue (63.8 percent of total revenue) to N171.1 billion (H1 2023 N39.6 billion; 53.2 percent of total), attributed to increased production levels, significant impact of improved utilisation of the Trans Niger Pipeline (TNP) on which there has been reduced crude losses, and additional value from the ACE route with resultant higher crude oil lifting of 1.5Mbbls in H1 2024 vs 1.1Mbbls in H1 2023”, Aradel stated.

It maintained that its gas revenue recorded a 321.8 percent increase to N15.5 billion, representing 5.8 percent of total, saying this was due to higher production volumes against H1 2023 of N3.7 billion and 4.9 percent of total revenue.

It added that it achieved a 161.6 percent increase in refined products’ revenue, which was 30.4 percent of total, to N81.7 billion compared to H1 2023 of N31.2 billion and 41.9 percent of total revenue. It maintained that this was also due to increased production and sales volumes of 122.2 mmltres, up by 114.4 percent compared to H1 2023 of 57.0 mmltres.

Commenting on the results, the Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade, stated that the company’s performance in the first half of 2024 consolidated on the improved operational and financial performance from 2023.

Adegbite added, “We achieved increased diversification of our revenue streams on significantly improved hydrocarbons production, and material increases in the output from our refinery operations.

“Wells 14 and 15 have now been drilled – and results have been favourable – concluding our Phase 1, 4-well turnkey drilling campaign.

“To accommodate the expected incremental volumes, we also expanded the throughput capacity of our Alternative Crude Evacuation (“ACE”) operations. These activities, among others, put us in a position to maintain the output and efficiency levels for the second half of the year.

“Omerelu field appraisal was completed, and first oil was achieved via re-entry of well 2ST in May 2024. Extended Well Testing is ongoing, in accordance with regulatory approvals.”

Additionally, the company’s operational highlights, concerning production and refining, also showed crude oil production of 12,957 barrels per day (bbls/day), up 51.7 per cent recorded in H1 2023, which was 8,544 bbls/day.

The operator said it also recorded gas production of 40.4 million standard cubic feet per day (MMscfd), which was 7,132 barrels of oil equivalent (boepd), up by 75.4 per cent against the H1 2023 figure of 23.0 MMscfd and 4,067 boepd.

It maintained that its refined petroleum products sold 122.2 million litre (mmltres), up by 114.4 per cent, compared to the H1 2023 number of 57.0 mmltres.