Aradel Reports ₦377.6bn Revenue In Q3 2024, Declares ₦8 Per Share Interim Dividend

Leading integrated indigenous energy company in Nigeria, Aradel Holdings Plc, has disclosed its earnings in the first nine months of 2024, saying its revenue increased by 206.9 per cent (N377.6 billion) from N123.0 billion in the same period in 2023.

Aradel said the rise was driven by 349.9 per cent increase in export crude oil revenue (66.6% of total revenue) to N251.6 billion (9M 2023 ₦55.9 billion; 45.5% 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 2.1 mbbls in 9M 2024 (9M 2023: 1.3 mbbls).

A statement by the company on Wednesday said: “Gas revenue recorded a 263.5 per cent increase to ₦22.8 billion (6.0 per cent of total revenue), due to higher production volumes (9M 2023: ₦6.3 billion; 5.1% of total revenue).

“69.5 per cent increase in refined products’ revenue (27.3 per cent of total revenue) to ₦103.1 billion (9M 2023: ₦60.8 billion; 49.4% of total revenue) due to increased production and sales volumes of 148.6 mmltres, up by 17.8% (9M 2023: 126.2 mmltres).”

Speaking during the announcement of its unaudited nine months results for the period ended September 30, 2024, Chief Executive Officer of Aradel Holdings Plc, Mr Adegbite Falade, said the organisation achieved increased diversification of its revenue streams on significantly improved hydrocarbons production, and material increases in the output from its 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 evacuation channels. These activities, among others, put us in a position to maintain the output and efficiency levels for the nine months of the year.

“Additionally, we completed the acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint venture. This will further enhance our portfolio and create new opportunities for future production growth. This acquisition 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 of our business.

“Our listing on the NGX bolsters liquidity of our shares and fulfills our promise to enhance shareholder value. We expect to close the year on a strong footing, barring any unforeseen circumstances.

“In the light of the nine months performance, the Board has proposed the payment of an interim dividend of ₦8 per share. The Interim Dividend of ₦8 per Ordinary Share of ₦0.50 each, (subject to appropriate withholding tax) will be paid to shareholders whose names appear in the Register of Shareholders as at the close of business on 20 November 2024,” Falade stated.