Strong Financial Performance and Strategic Growth for Aradel Holdings Plc in H1 2025
Aradel Holding Plc has reported impressive financial results for the first half of 2025, with significant growth in revenue and profit after tax. The company recorded a revenue of ₦368.1 billion, representing an increase of 37.2% compared to the previous year. Profit after tax also rose by 40.2%, reaching ₦146.4 billion.
The company’s operational highlights show a notable increase in crude oil production, which rose by 19.7% from 12,957 barrels per day (bbls/day) in 2024 H1 to 15,508 bbls/day in 2025 H1. Gas production also increased by 1.5%, moving from 40.4 mmscfd (7,132 boepd) in 2024 H1 to 41.2 mmscfd (7,276 boepd) in 2025 H1.
In terms of refined petroleum products, sales reached 165.3 million litres, up by 32.7% from 122.2 million litres in 2024 H1. The average realized crude oil price for exports was $73.6 per barrel, down slightly from $87.5 in the same period last year. The average realized gas price per mscf was $1.7, an increase from $1.5 in 2024 H1.
Leadership and Strategic Moves
The Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade, highlighted the challenges and opportunities faced by the Nigerian oil and gas industry during the first half of 2025. He noted that global geopolitical tensions continued to affect supply and prices, while local operating conditions required resilience and adaptability.
Despite these challenges, the company maintained strong operational performance, driven by stable production volumes. Significant progress was made on strategic growth initiatives, including the acquisition of equity interest in Chappal Energies Mauritius Limited. Additionally, the recent investment in Renaissance Africa Energy Company (Renaissance) yielded positive returns, with the company’s share of its performance now reflected in Aradel’s financials.
Aradel also welcomed new members to its Board, including Ms. Kerin Gunter, Mr. Olusola Adeeyo, Mr. George Osahon, and Mr. Mahmud Tukur. These additions reflect the company’s commitment to strong stewardship and future-ready leadership.
Financial Review and Key Drivers
The financial review of Aradel shows that foreign exchange dynamics continued to impact the Group’s performance. However, the pace of naira devaluation slowed in H1 2025 compared to the previous year. The average exchange rate in H1 2025 was ₦1,550:US$1, compared to ₦1,345:US$1 in H1 2024.
Revenue increased by 37.2% to ₦368.1 billion, primarily driven by higher export crude oil revenue, refined products revenue, and gas revenue. Export crude oil revenue rose by 36.0% to ₦232.8 billion, while refined products revenue increased by 42.6% to ₦116.5 billion. Gas revenue also saw a 21.7% increase to ₦18.8 billion.
Cost of sales (COS) increased significantly, rising by 91.8% to ₦204.9 billion. This was mainly due to higher royalties and statutory expenses, depreciation, crude handling charges, and operational and maintenance expenses. General and administrative (G&A) expenses also surged by 184.1% to ₦53.1 billion, driven by staff costs, permits, licenses, and other administrative expenses.
Operating Profit and Taxation
Operating profit declined by 21.1% to ₦118.6 billion, attributed to higher business operating costs and a drop in the realized price of crude oil despite higher sales across all products. Finance costs increased by 109.0% to ₦12.5 billion, primarily due to additional borrowings for the SPDC acquisition. However, finance income rose by 49.2% to ₦11.1 billion from interest-bearing investments.
Profit before tax increased by 17.9% to ₦191.3 billion, with an estimated income tax expense of ₦44.9 billion. Share of profit from associates amounted to ₦71.2 billion, reflecting contributions from ND Western Limited and Renaissance Africa Energy Company. Profit after tax rose by 40.2% to ₦146.4 billion.
Asset Growth and Liabilities
Total assets grew by 3.5% to ₦1.8 trillion, primarily due to the acquisition of a 6.01% equity stake in Chappal Energies Mauritius Limited. The completion of the Renaissance Africa Energy Holdings acquisition of the entire 100% equity holding in SPDC further strengthened Aradel’s position. Total liabilities increased by 3.4% to ₦357.5 billion, mainly due to additional debts from the SPDC acquisition and tax liability estimates. Total equity rose by 3.5% to ₦1.45 trillion, driven by retained comprehensive income.
Cash Flows
Cash flows from operating activities increased by 6.0% to ₦179.7 billion, despite the settlement of income tax liabilities for 2024 FY assessment and non-receipt of gas sales proceeds. Cash flows from investing activities used N97.1 billion, mainly due to investments in Renaissance and Chappal Energies. Cash flows from financing activities rose to N112.2 billion, driven by dividend payments.
