Peter Uzoho writes that with resilience, value optimisation, operational and financial efficiencies, Aradel Holdings Plc has sustained its impressive performance for the full year ended December 31, 2024
Aradel Holdings Plc, a leading Nigerian integrated energy company quoted on the Nigerian Exchange Limited(NGX) recently announced N247.8 billion profit after tax (PAT) in its unaudited financials for full year ended December 31, 2024, representing about 361.1per cent increase over the N53.7 billion reported in December 2023.
The company from its profit & loss figures also announced N321.6 billion profit before tax (PBT) in 2024 unaudited results, representing an increase of 186.7 per cent from N112.2 billion recorded in 2023.
The Nigerian oil and gas industry as well as the capital market recorded an eventful year in 2024 with some entities playing major roles in shaping activities in the two sectors in remarkable ways.
For the oil and gas industry – the upstream sector in particular, there were divestment transactions where some assets or businesses were sold by the international oil companies (IOCs) and bought by Nigerian independent oil companies. In some cases, new companies and asset holders emerged, while in others, some existing companies bought new assets to expand their portfolios and streams of income and ultimately emerge bigger players.
In the year under review, new wells were drilled and first oil production milestones achieved, even as new partnerships were formed.
On other hand, for the capital market, some companies last year, asserted their position and their resolve to make a lasting impact on the economy and society by boldly listing on the NGX where their shares contributed in significantly shaping the market in 2024.
Interestingly, in many of the developments highlighted above, Aradel Holdings appeared prominently, attesting to its rising profile over the past years of its existence.
Impact of Listing on NGX
Aradel Holdings Plc’s listing by introduction on the NGX on 14th October last year increased the market capitalisation by N3.4 trillion as its stock price closed for the day’s trading at N772.90 per share, up from its listing price at N702.69 per share.
The successful listing on the NGX capped a landmark year for the company and was a significant milestone towards fulfilling its promise to enhance shareholder value.
“This will mark a historic milestone for Aradel as we list on the NGX, underscoring our commitment to creating long-term value for our shareholders and deepening our contributions to Nigeria’s economic landscape.
“This listing is a testament to our resilience, adaptability, and our unwavering dedication to providing sustainable energy solutions that drive growth across our communities and industries.
“As we embark on this new chapter in Aradel’s transformation journey, we remain focused on operational excellence, strategic expansion, and delivering returns that reflect our track record and vision for an energised future”, the chief executive officer (CEO) of company, Mr. Adegbite Falade, had stated while speaking during the ‘Facts Behind the Listing” at the time.
Similarly, Chairman of Aradel Holdings, Mr. Ladi Jadesimi, highlighted the company’s focus on innovation and sustainability, noting that Aradel was poised to expand its footprint in the renewables space while maintaining its leadership in the oil and gas sector.
“The listing of Aradel Holdings on NGX represents a pivotal moment for us,” Jadesimi said.
“We are committed to driving sustainable growth in Nigeria’s energy industry, particularly in the renewables space, while continuing to excel in petroleum product exploration and refining.
“This listing provides us with the platform to unlock further value for our shareholders,” he added.
NGX Hails Aradel Holdings
While delivering his speech at the listing exercise, the Group Chairman, NGX Group, Alhaji Umaru Kwairanga, stated that Aradel had been a key player in Nigeria’s energy sector, particularly in the exploration, production, and refining of petroleum products.
He said the successful listing of Aradel Holdings underscored the strength and viability of NGX as the preferred platform for companies looking to unlock value and achieve their growth potential.
According to him, Aradel’s commitment to innovation, strategic investment, and sound governance sets a benchmark for the oil and gas industry, showcasing the immense opportunities that our capital market offers to businesses.
He maintained that the achievement was not only a win for Aradel, but also a strong signal to both local and global investors that Nigeria’s capital market remained dynamic, resilient, and full of opportunities.
Kwairanga further said: “We are proud to serve as a trusted partner in facilitating capital raising, supporting companies like Aradel that contribute significantly to Nigeria’s economic growth.
“Moreover, Aradel’s listing aligns with Nigeria’s broader national objective of building a trillion-dollar economy.
“By enhancing its visibility, governance, and access to capital, Aradel is well-positioned to scale its operations and create value for shareholders while contributing to Nigeria’s economic diversification.
“The oil and gas sector remains a critical driver of our economy, and companies like Aradel are expanding the sector’s footprint. Their success demonstrates that local capital and content can propel the industry to new heights, contributing to Nigeria’s broader economic transformation.
“As Aradel Holdings joins the NGX Main Board, we celebrate a story of resilience, innovation, and ambition. We are confident that Aradel’s growth will further strengthen Nigeria’s capital market and reinforce the critical role of NGX in supporting the aspirations of companies across all sectors.”
The Group Managing Director and CEO of NGX Group, Mr. Temi Popoola, emphasised the broader significance of Aradel’s listing.
“The benefits of an equity market listing for the upstream sub-sector of the oil and gas industry is especially crucial in light of its dire capital requirements and chronic underinvestment.
“Aradel has come to the market at a critical time as this and we are confident that our infrastructure here at NGX, both market and technology, can unlock the capital flows needed to ensure the sector thrives”, Popoola said.
The Chief Executive Officer of NGX, Mr. Jude Chiemeka echoed similar sentiments, stressing the role of NGX in supporting corporate growth and innovation.
“Aradel’s listing highlights NGX’s ability to support leading companies in their growth journey. This is not just a milestone for Aradel, but a key moment for the energy sector, demonstrating how the capital market can fuel efficiency and development in critical industries,” Chiemeka noted.
Sustaining Impressive Financial Performance
A look at Aradel Holdings Plc’s 2024 financial performance showed that the growth in profits was driven by N581.2 billion revenue in 2024, a growth of 162.7 per cent from N221.1 billion declared in 2023.
The company explained that the growth in revenue was driven by “244.6 per cent increase in export crude oil revenue (64.31per cent of total revenue) to N373.7 billion in 2024 from N108.4 billion in 2023; 49.03 per cent of total).
It attributed these to increased production levels, significant impact of improved utilisation of the Trans Niger Pipeline (TNP) on which there has been reduced crude losses, and additional value from the Alternative Crude Evacuation (ACE) route with resultant higher crude oil lifting of 3.1 million barrels in 2024 (FY 2023: 2.1 mbbls).
Aradel reported growth in gas revenue with an increase of 174.7per cent to N28.0 billion in 2024 (4.8per cent of total revenue), due to higher production volumes ( 2023: N10.2 billion; 4.6 per cent of total revenue).
It pointed out that “74.9 per cent increase in refined products’ revenue (30.9 per cent of total revenue) to N179.3 billion (FY 2023: N102.5 billion; 46.4 per cent of total revenue) due to increased sales volumes of 240.5 mmltres, up by 14.47 per cent (FY 2023: 210.1 mmltres),” contributed to the significant increase in revenue.
Increased Topline and Bottomline
Commenting on the financials, Falade said: “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. 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.
Assets Acquisition/Expansion
However, to increase its asset base and expand its portfolio, Aradel was involved in the some of the divestment transactions that were witnessed in the Nigerian oil and gas industry last year where most of the multinationals put their onshore and shallow water businesses on sale.
Specifically, Aradel 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.
Moreover, the company is also an equity participant in the Renaissance Africa Energy Company Limited, the acquirer of Shell’s 100 per cent 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”, Falade stated.
Presently, the company’s total assets stood at N1.7 trillion in 2024, a growth of 89 per cent from N923.4 billion in 2023 and it was driven by increase in Property, plant and equipment by 77.9per cent to N684.2 billion in 2024 from N384.6 billion in 2023.
“This was impacted mainly by increased capital expenditure and higher FX rates. Increase in the value of assets of ND Western, the Company’s associate, to N489.5 billion, up 81.2per cent year-to-date (FY 2023: N270.2 billion) due to share of profit and other comprehensive income for the period,” the company added.
Future Plans
While hoping to sustain its impressive performance going forward, Aradel’s plan for 2025 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 16kbbis per day and 50mmscf per day”, the company noted.
Aradel Wins NGX Award
At the 2024 NGX Made of Africa Awards held last December in Lagos, Aradel Holdings Plc won the Listing of the Year (Equity) Award, which recognised the highest value of a new listing in the period under review.
The award was presented to Aradel Holdings CEO, Falade, by the NGX CEO, Chiemeka in recognition of the company’s listing, which was viewed as a major step towards achieving its vision of providing energy solutions that foster economic growth.
The listing also marked a significant milestone in the company’s operations and fulfilled a key promise made by the founding fathers of the company, to democratise access to the energy sector and contribute to the wealth creation of the nation.
The Made of Africa Awards recognise companies and individuals within the capital market ecosystem that demonstrate exceptional performance in value delivery and sustainable impact, while acting as key drivers in strengthening the Nigerian and African capital markets.
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