
By William Emmanuel Ukpoju
Aradel Holdings Plc, a leading name in Nigeria’s energy sector, has unveiled its unaudited full-year financial results for 2024, showcasing remarkable growth and strategic advancements. The company reported a staggering revenue increase of 162.7% to N581.0 billion, while profit after tax surged by 361.1% to N247.8 billion. These milestones underscore Aradel’s operational efficiency, robust strategy, and its pivotal role in Nigeria’s energy landscape.
CEO Insights: A Year of Achievements and Strategic Growth
Commenting on the company’s outstanding performance, the Chief Executive Officer, Mr. Adegbite Falade highlighted the key factors behind the success:
“The Company sustained its strong operational and financial performance in 2024, building on the improvements achieved in 2023. We recorded increased topline and bottomline, driven by significantly higher hydrocarbon production, the successful re-entry of Well 2ST in the Omerelu Field, which resulted in the attainment of First Oil on 31st May 2024, and increased sales volumes from our refinery operations.”
He further elaborated on the completion of critical projects:
“We successfully drilled Wells 14 and 15, marking the conclusion of our Phase 1, four-well turnkey drilling campaign with favourable results. We kicked off the second phase of the drilling campaign with Well 16, which is approaching completion. To support the anticipated production growth, we expanded the throughput capacity of our evacuation channels, positioning us to maintain strong output and efficiency levels throughout the year.”
The CEO emphasized the strategic acquisitions that have positioned Aradel for long-term growth:
“We completed the acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint venture and entered an agreement to acquire a minority equity interest in Chappal Energies Mauritius Limited, an energy company focusing on investments in deep value and brownfield upstream opportunities within Africa. Aradel is also an equity participant in the Renaissance Africa Energy Company Limited, the acquirer of Shell’s 100% equity interest in the Shell Petroleum Development Company (SPDC) Limited, for which Ministerial Consent has been obtained. These acquisitions further enhance our portfolio and create new opportunities for future production growth. They 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 as well as sustainability of our business.”
Reflecting on a key milestone for the company, Mr. Falade said, “Our successful listing on the NGX in October capped a landmark year for the Company and was a significant milestone towards fulfilling our promise to enhance shareholder value.”
Looking ahead to 2025, the CEO outlined ambitious plans:
“Our plan is to commence the development programmes for Olo and Olo West as well as the Omerelu Fields. These are in addition to optimising production from Ogbele, with a target annual production of 16kbbls per day and 50mmscf per day.”
Operational Milestones
In 2024, Aradel Holdings achieved significant operational advancements:
Crude Oil Production: 13,751 barrels per day, a 41.2% increase from 2023.
Gas Production: 32.4 million standard cubic feet per day (mmscfd), up by 21.9%.
Refined Petroleum Sales: 240.5 million litres, a 14.5% growth.
The successful re-entry of Well 2ST in the Omerelu Field and the completion of Wells 14 and 15 highlighted the company’s technical prowess and operational efficiency.
Financial Triumphs
Key financial highlights include:
Revenue: N581.0 billion, up from N221.1 billion in 2023.
Profit After Tax: N247.8 billion, a remarkable 361.1% increase.
Gross Profit Margin: Maintained at a strong 51.2%.
Earnings Per Share (EPS): N57.03, up by 361.1%.
The company also recorded a significant increase in operating profit, rising by 160.8% to N297.4 billion, with an impressive EBITDA margin of 64.39%.
Strategic Acquisitions and Portfolio Expansion
To diversify its asset base and enhance production capabilities, Aradel made several strategic moves:
Acquisition of Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint Venture.
Investment in Chappal Energies Mauritius Limited, focusing on upstream energy opportunities in Africa.
Equity participation in Renaissance Africa Energy Company Limited, securing Ministerial Consent for the acquisition of Shell’s SPDC.
Resilience Amid Market Challenges
Despite foreign exchange volatility, with the average exchange rate rising from N645.92/USD in 2023 to N1479.68/USD in 2024, Aradel maintained robust growth. The company leveraged the Trans Niger Pipeline (TNP) and Alternative Crude Evacuation (ACE) routes to reduce crude losses and enhance operational efficiency.
A Brighter Future Ahead
Aradel Holdings’ remarkable financial performance, strategic acquisitions, and operational efficiency position it for continued growth. With ambitious development plans for 2025 and a strong commitment to shareholder value, the company is set to lead Nigeria’s energy sector into a more sustainable and prosperous future.