Aradel Holdings Plc’s revenue rose by 162.7% to ₦581.0 billion in the financial year ended December 31, 2024.
Profit after tax surged 360.8% to ₦247.6 billion, according to the company’s unaudited financial statement obtained by Investors King on Tuesday.
The integrated indigenous energy company attributed its record growth to higher hydrocarbon production, expanded refining capacity, and key acquisitions that strengthened its asset portfolio.
Financial Performance
Revenue growth was primarily driven by a 244.6% increase in export crude oil revenue, which accounted for ₦373.7 billion, or 64.31% of total earnings.
Other key financial highlights include:
- Gross Profit: ₦319.8 billion (+124.7%)
- Operating Profit: ₦297.5 billion (+160.8%)
- Profit Before Tax: ₦321.6 billion (+186.7%)
- Earnings Per Share (EPS): ₦57.03 (+361.1%)
- Total Assets: ₦1.74 trillion (+89.0%)
- Free Cash Flow: ₦178.5 billion (+98.1%)
Despite currency fluctuations, Aradel maintained strong liquidity and profitability, navigating an average exchange rate of ₦1,479.68 per USD in 2024, compared to ₦645.92 per USD in 2023.
Operational Growth
Production metrics showed significant improvements, with crude oil output rising 41.2% to 13,751 barrels per day (bbls/day). Gas production increased 21.9% to 32.4 million standard cubic feet per day (mmscfd), while refined petroleum product sales climbed 14.5% to 240.5 million liters.
Aradel’s CEO, Adegbite Falade, attributed the company’s strong performance to sustained production growth and strategic asset development.
“We recorded increased topline and bottom-line growth, driven by significantly higher hydrocarbon production and increased sales volumes from our refinery operations. The successful re-entry of Well 2ST in the Omerelu Field resulted in First Oil on May 31, 2024. We also completed our four-well turnkey drilling campaign and initiated Phase 2 with Well 16 nearing completion.”
Strategic Acquisitions and Expansion
The company expanded its asset base with the acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint Venture. Additionally, Aradel secured a minority equity stake in Chappal Energies Mauritius Limited, an energy firm focusing on deep-value upstream opportunities in Africa.
Aradel is also an equity participant in the Renaissance Africa Energy Company Limited, which acquired Shell’s 100% stake in Shell Petroleum Development Company (SPDC) Limited, with Ministerial Consent already secured.
Future Outlook
Aradel’s successful listing on the Nigerian Exchange (NGX) in October 2024 positioned the company for further growth, reinforcing its commitment to shareholder value creation.
For 2025, the company plans to:
- Commence development programs for Olo, Olo West, and Omerelu Fields
- Increase crude production to 16,000 bbls/day and gas output to 50 mmscfd
- Expand evacuation capacity to support sustained production growth
With a diversified asset base and strong cash flow, Aradel remains well-positioned for sustained growth in Nigeria’s energy sector.