2024FY: Aradel Holdings Declares 361.1% increase in Profit to N247.8bn

Kayode Tokede

Aradel Holdings Plc, yesterday on the Nigerian Exchange Limited (NGX) announced N247.8 billion profit after tax in its unaudited financial for period ended December 31, 2024, about 361.1per cent increase over N53.7 billion reported in December 2023.   

The integrated indigenous energy company from its profit & loss figures also announced N321.6billion profit before tax in 2024 unaudited results, representing an increase of 186.7 per cent from N112.2billion in 2023. 

The growth in profits was driven by N581.2 billion revenue in 2024, a growth of 162.7 per cent from N221.1 billion declared in 2023. 

The company in a statement explained that growth in revenue was driven by  “244.6per cent increase in export crude oil revenue (64.31per cent of total revenue) to N373.7 billion in 2024 from N108.4 billion in 2023; 49.03per cent 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 Alternative Crude Evacuation (ACE) route with resultant higher crude oil lifting of 3.1 mbbls in 2024 (FY 2023: 2.1 mbbls).

It added that gas revenue with an increase of 174.7per cent to N28.0 billion in 2024 (4.8per cent of total revenue), due to higher production volumes (FY 2023: N10.2 billion; 4.6per cent of total revenue).

“74.9per cent increase in refined products’ revenue (30.9per cent of total revenue) to N179.3 billion (FY 2023: N102.5 billion; 46.4per cent of total revenue) due to increased sales volumes of 240.5 mmltres, up by 14.47per cent (FY 2023: 210.1 mmltres),” contributed to the significant increase in revenue.

The Chief Executive Officer of Aradel Holdings, Mr. Adegbite Falade in a statement 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 per cent equity interest in the Shell Petroleum Development Company (SPDC) Limited, for which Ministerial Consent has been obtained. 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.”

The company’s total assets stood at N1.7 trillion in 2024, a growth of 89 per cent from N923.4 billion in 2023 and it was driven by increase in Property, plant and equipment by 77.9per cent to N684.2 billion in 2024 from N384.6 billion in 2023.

“This was impacted mainly by increased capital expenditure and higher FX rates. Increase in the value of assets of ND Western, the Company’s associate, to N489.5 billion, up 81.2per cent year-to-date (FY 2023: N270.2 billion) due to share of profit and other comprehensive income for the period,” the company added.  

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