H1 2025 Results: Aradel Holdings Plc Records Revenue of ₦368.1bn, PAT of ₦146.4bn

Aradel Holdings Plc has announced its unaudited half year results for the period ended 30 June 2025.

In the Group Financial Highlights released by the leading integrated indigenous energy company, revenue increased by 37.2% to ₦368.1 billion (H1 2024: ₦268.3 billion).

This was driven by: 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), 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), 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) 1 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 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 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 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 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 2 (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.

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. Includes stock adjustment of ₦14.6 billion. Without the stock adjustment COS would be ₦205.2 billion which consists of catering, printing and stationery, training, donations and other related administrative costs.

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 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 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. 

Aradel’s operational highlights indicate: Production and Refining: Crude oil production of 15,508 bbls/day, up 7% (H1 2024: 12,957 bbls/day), Gas production of 2 mmscfd (7,276 boepd), up by 1.5% (H1 2024: 40.4 mmscfd (7,132 boepd)), Refined petroleum products sold 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 Comments: “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, 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.”

It’s Financial Review: 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.

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.

Dividend Payment: In line with our commitment to delivering value to shareholders, the final dividend of N22 for FY 2024, approved at the AGM was fully paid in H1 2025.

Corporate Governance Updates: The following key changes were made to the Board of Directors during the first half of the year: Osten Olorunsola was appointed as Chairman of the Board, effective 9 July 2025, following the retirement of Mr. Ladi Jadesimi; Kerin Gunter as Nominee Director of Petrolin Group; Mahmud Tukur and Mr. George Osahon were appointed as Independent Non-Executive Directors; and Olusola Adeeyo was appointed as Non-Executive Director.