Aradel Holdings Posts N34.2bn Net Profit In Q1

Aradel Holdings Plc has declared profit after tax of N34.2 billion in its audited results for the first quarter (Q1) ended March 31, 2025.

The company’s revenue increased by 97.6 per cent to N199.9 billion from N101.2 billion in Q1 2024. Cost of sales increased by 214.3 per cent to N121.0 billion compared to N38.5 billion in 2024, while gross profit rose to N78.889 billion as against N62.669 billion in 2024.

Operating profit stood at N63.6 billion, up 79.1 per cent from N35.5 billion in Q1, 2024; while finance costs increased by 62.7 per cent to N5.4 billion from N3.3 billion, driven primarily by additional borrowings to finance the SPDC acquisition.

Profit before tax for the period under review amounted to N67.2 billion, up by 70.1 per cent from N39.5 billion, while profit after tax increased by 55.3 per cent to N34.2 billion from N22.0 billion in Q1 2024. Basic earnings per share rose to N7.77 compared to N5.10.

Speaking, the chief executive officer of Aradel Holdings,  Adegbite Falade said: “Aradel’s Q1, 2025 performance is in line with our desire to build on the momentum that the Company generated in 2024. The increase in crude production (and attendant revenues) was because of more volumes from the additional wells drilled, and the continued extended well test at the Omerelu Field.

“We expect an improvement in Q2, 2025. On our gas output, we were challenged by gas pipeline issues during the quarter which also impacted on our liquids production. However, we resolved these at the end of the period and are putting in place measures that will limit the recurrence. These, coupled with the expansion and optimisation of our throughput capacity across our evacuation lines, put us in a good position for the rest of the year.”

He noted that, “the completion of the acquisition of SPDC by the Renaissance consortium on March 11, 2025, brings to a conclusion a landmark transaction that further enhances our long-term prospects for significant upsides in our pursuit of value creation.”

Falade explained that, “an outcome of our 2024 financial performance was also the recommendation of NGN22 per share in the final year dividend.

This is in addition to the interim dividend of N8 per share declared in November 2024 and, combined, represents an increase of 200 per cent over the 2023 payment of N10 per share. We keep striving to ensure that our shareholders directly benefit from the financial performance of the Group.”