Aradel Holding Plc H1 2025 unaudited report shows revenue of ₦368.1 Billion, Up 37.2% and Profit after Tax of ₦146.4 Billion, up 40.2%.
The company’s operational highlights shows it’s crude oil production increased by 19.7% from 12,957 bbls/day in 2024 H1 to 15,508 bbls/day while gas production also increased by 1.5% from 40.4 mmscfd (7,132boepd) in 2024 H1 to 41.2 mmscfd (7,276 boepd) in 2025 H1.
Other aspect of Aradel profit operation include refined petroleum products sold 165.3 mmltres, up by 32.7% (H1 2024: 122.2 mmltres); average realised crude oil price (exported) per barrel of $73.6 (H1 2024: $87.5); and average realised gas price per mscf of $1.7 (H1 2024: $1.5)
The Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade said:
“The first half of 2025 was shaped by both opportunities and challenges for Nigeria’s oil and gas industry. Global geopolitical tensions continued to drive supply uncertainties and price volatility, while local operating conditions, from infrastructure to regulatory transitions, demanded resilience and adaptability.
“In the face of this dynamic landscape, our Company remains focused and forward-looking. We recorded strong operational performance, driven by stable average production volumes.
We made significant progress on our strategic growth agenda.
“We successfully completed the acquisition of equity interest in Chappal Energies Mauritius Limited. Furthermore, our recent investment in Renaissance Africa Energy Company (Renaissance’), our deemed associate, has yielded positive returns, with our share of its performance featuring in Aradel’s books for the first time. ND Western Limited and Renaissance Africa Energy Company are expected to remain significant contributors to our bottom-line from non-operated assets into the future.
The consistent performance of our associate companies underscores the strategic value of our stake and supports our broader portfolio diversification objectives.
We extend our sincere gratitude to Mr. Ladi Jadesimi, Mr. Ede Osayande, and Mr. Thierry Georger, who stepped down from Aradel’s Board after several years of dedicated service, in line with statutory tenure limitations. We also welcome new members to our Board during the first half of the year, enhancing the breadth of experience and diversity of thought at the highest level of our governance structure.
The new additions to the Board are Ms. Kerin Gunter, Mr. Olusola Adeeyo, Mr. George Osahon, and Mr. Mahmud Tukur. These changes reflect our commitment to strong stewardship and future-ready leadership.
As we look ahead to the second half of the year, we remain focused on executing our strategic priorities: enhancing shareholder value, maintaining operational excellence, and delivering responsibly in today’s changing energy landscape.”
Financial review of Aradel shows that foreign exchange dynamics continued to impact on the financial performance of the Group, although, H1 2025 witnessed a lesser pace of naira devaluation year on year. The average exchange rate in H1 2025 was ₦1,550:US$1 relative to ₦1,345:US$1 in H1 2024.
According to financial statement released Adegbola Adesina, Chief Financial Officer shows that the company’s revenue increased by 37.2% to ₦368.1 billion (H1 2024: ₦268.3 billion).
The report shows that this was driven by 36.0% increase in export crude oil revenue (63.2% of total revenue) to ₦232.8 billion (H1 2024 ₦171.1 billion; 63.8% of total), driven by increased production levels, improved utilisation of the Trans Niger Pipeline (TNP), minimal crude losses and additional value from the Alternative Crude Evacuation (ACE) system, resulting in higher crude oil sales of 2.04 mbbls in H1 2025 (H1 2024: 1.46 mbbls), despite drop in realised crude oil price (exported) per barrel to $73.6 (H1 2024: $87.5)
“42.6% increase in refined products revenue (31.6% of total revenue) to ₦116.5 billion (H1 2024: ₦81.7 billion; 30.4% of total revenue) due to higher sales volume of 165.3 mmltres, up by 32.7% (H1 2024: 122.2 mmltres).
“21.7% increase in gas revenue to ₦18.8 billion (5.2% of total revenue), due to higher production volumes (H1 2024: ₦15.5 billion; 5.8% of total revenue) as well as higher realised gas price per mscf of $1.7 (H1 2024: $1.5).
“Cost of sales (COS) increased by 91.8% to ₦204.9 billion (H1 2024: ₦106.9 billion). This was primarily driven by: Royalties & Other Statutory expenses (28.4% of COS increased by 151.8% to ₦58.3 billion (H1 2024: ₦23.1 billion). This was driven by higher production, additional royalty provisions, NDDC Levy provisions and other activity levels during the period.
“Depreciation (27.6% of COS) increased by 48.1% to ₦56.6 billion (H1 2024: ₦38.2 billion), arising from higher hydrocarbon production, and the addition of newly capitalised Well 16 in Ogbele field.
Crude Handling Charges (23.8% of COS) which rose by 34.5% to ₦48.9 billion (H1 2024: ₦36.3 billion) due to growing activity along the Trans Niger Pipeline (TNP) and Alternative Crude Evacuation (ACE) operations.
Operational and maintenance expenses (12.6% of COS) grew by 295.6% to ₦25.8 billion (H1 2024: ₦6.5 billion) owing to crude oil evacuation activities at Omerelu, provisions for host communities development trust contributions arising from the PIA and well maintenance services.
Stock adjustment (7.1% of COS) increased to ₦14.6 billion (H1 2024: credit of ₦6.9 billion) as a result of lower inventory levels in H1 2025.
Provision no longer required, a credit of ₦13.3 billion, relates to the writeback of Asset Retirement Obligation (ARO) provision following the revision of oil and gas estimates in the refinery business.
General and Administrative (G&A) expenses increased by 184.1% to ₦53.1 billion (H1 2024: ₦18.7 billion). The major drivers include:
Staff costs (64.4% of G&A expenses) rose by 436.7% to ₦34.2 billion (H1 2024: ₦6.4 billion) primarily due to the commencement of the cash-settled share-based incentive scheme in Q4 2024, staff additions and employee remuneration review.
Permits, licenses and subscription (10.2% of G&A expenses) increased by 197.2% to ₦5.4 billion (H1 2024: ₦1.8 billion) arising from increase in technology subscription expenses.
Other expenses (7.4% of G&A expenses) increased by 62.7% to ₦3.9 billion (H1 2024: ₦2.4 billion) arising from increased catering and other related administrative costs following the commencement of operations in Omerelu.
Operating profit of ₦118.6 billion, down 21.1% (H1 2024: ₦150.3 billion) from higher business operating costs in the period and drop in the realised price of crude oil despite higher sales across all products in H1 2025.
In addition, finance costs increased by 109.0% to ₦12.5 billion (H1 2024: ₦6.0 billion) driven primarily by additional borrowings to finance the SPDC acquisition. Finance Income increased by 49.2% to ₦11.1 billion (H1 2024: ₦7.4 billion) resulting from interest-bearing investments of cash and cash equivalents.
Profit before tax of ₦191.3 billion, up by 17.9% (H1 2024: ₦162.3 billion), with an Income tax expense estimate of ₦44.9 billion (Cash Tax ₦39.7 billion and Deferred tax ₦5.2 billion), relative to H1 2024 tax expense of ₦57.9 billion.
Share of profit of associates of ₦71.2billion represents contributions from ND Western Limited and Renaissance Africa Energy Company.
Profit after tax increased by 40.2% to ₦146.4 billion (H1 2024: ₦104.4 billion).
Year-to-date growth in total assets of 3.5% to ₦1.8 trillion (FY 2024: ₦1.7 trillion). This increase is primarily attributable to the acquisition of 6.01% equity stake in Chappal Energies Mauritius Limited, an energy company focused on investments in deep value and brownfield upstream opportunities within Africa.
The completion of Renaissance Africa Energy Holdings acquisition of the entire (100%) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC) in H1 2025. Aradel holds a total equity stake of 33.3% (12.5% direct stake and 20.8% through ND Western’s 50% equity stake) in Renaissance.
Total liabilities rose by 3.4% to ₦357.5 billion (FY 2024: ₦345.7 billion). This increase is attributable to additional debts in respect of the SPDC acquisition and tax liability estimates from H1 2025 performance.
Total equity increased by 3.5% to ₦1.45 trillion (FY 2024: ₦1.40 trillion) primarily due to the retention of total comprehensive income over the period.
Cash flows from operating activities
The Company generated cash flows from operations of ₦179.7 billion (H1 2024: ₦169.6billion), representing an increase of 6.0%. H1 2025 performance was impacted by the settlement of income tax liabilities for 2024 FY assessment amounting to ₦38.9 billion and non-receipt gas sales & other proceeds worth ₦38.2 billion (to be received in Q3 2025).
Cash flows from investing activities
Net cash flow used in investing activities was N97.1 billion, up 112.4% (H1 2024: N45.7 billion). This increase is mainly driven by cash-financed investment in Renaissance amounting to ₦21.3 billion in H1 2025 and investment of N34.9 billion in Chappal Energies.
Cash flows from financing activities
Net cash flows used in financing activities rose to N112.2 billion, up 99.6% (H1 2024: N56.2 billion), due to payment of dividends.
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