Aradel Holdings Plc Reports H1 2025 Results: Revenue Rises 37.2% to ₦368.1 Billion, Profit After Tax Up 40.2%

Aradel Holdings Plc, Nigeria’s leading integrated indigenous energy company, has announced its unaudited half-year results for the period ended 30 June 2025.

Financial Performance Summary (₦ ’billion)

Operational Highlights

• Crude oil production increased by 19.7% to 15,508 barrels per day (H1 2024: 12,957 bbls/day).

• Gas production rose 1.5% to 41.2 million standard cubic feet per day (7,276 barrels of oil equivalent per day).

• Refined petroleum product sales grew by 32.7% to 165.3 million litres (H1 2024: 122.2 million litres).

• Average realised export crude oil price per barrel was $73.6 (H1 2024: $87.5).

• Average realised gas price increased to $1.7 per mscf (H1 2024: $1.5).

CEO Statement – Mr Adegbite Falade
“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 Overview
The Group’s financial performance in H1 2025 was affected by ongoing foreign exchange challenges, though naira devaluation occurred at a slower pace compared to the prior year. The average exchange rate in H1 2025 stood at ₦1,550:US$1 (H1 2024: ₦1,345:US$1).

Revenue rose by 37.2% to ₦368.1 billion, mainly driven by:

• A 36.0% increase in export crude oil revenue to ₦232.8 billion (H1 2024: ₦171.1 billion), with volumes boosted by increased production, improved utilisation of the Trans Niger Pipeline (TNP), minimal losses, and enhanced output via the Alternative Crude Evacuation (ACE) system. Export sales reached 2.04 million barrels (H1 2024: 1.46 million barrels), despite a lower realised price.

• A 42.6% increase in refined products revenue to ₦116.5 billion (H1 2024: ₦81.7 billion), supported by a 32.7% rise in volumes sold to 165.3 million litres.

• Gas revenue rose 21.7% to ₦18.8 billion (H1 2024: ₦15.5 billion), driven by increased output and a higher realised gas price.

Cost of sales surged by 91.8% to ₦204.9 billion (H1 2024: ₦106.9 billion), mainly due to:

• Royalties and statutory expenses rising 151.8% to ₦58.3 billion.

• Depreciation costs increasing 48.1% to ₦56.6 billion, attributed to higher production and new capitalised assets.

• Crude handling charges up 34.5% to ₦48.9 billion, reflecting heightened pipeline and ACE activity.

• Operational and maintenance expenses jumped 295.6% to ₦25.8 billion, linked to evacuation activities and regulatory trust contributions.

• Stock adjustment costs rose to ₦14.6 billion, from a credit of ₦6.9 billion in H1 2024.

• A credit of ₦13.3 billion was recorded from the writeback of Asset Retirement Obligation provisions.

General and administrative expenses increased by 184.1% to ₦53.1 billion (H1 2024: ₦18.7 billion), driven by:

• Staff costs up 436.7% to ₦34.2 billion, due to the share-based incentive scheme, staffing additions, and remuneration review.

• Permits, licences, and subscriptions rising 197.2% to ₦5.4 billion.

• Other administrative expenses increasing 62.7% to ₦3.9 billion, largely due to expanded operations.

Operating profit declined 21.1% to ₦118.6 billion (H1 2024: ₦150.3 billion), reflecting increased operating costs and lower crude prices, despite higher sales volumes.

Finance costs more than doubled to ₦12.5 billion (H1 2024: ₦6.0 billion), mainly due to new borrowings for the SPDC acquisition. Finance income rose 49.2% to ₦11.1 billion (H1 2024: ₦7.4 billion), supported by higher returns from interest-bearing investments.