Aradel Holdings Plc has released its financial statements for the quarter ended 31st March 2025, reporting a pre-tax profit of N67.1 billion.
This reflects a 70.08 per cent increase compared to N39.4 billion recorded in Q1 2024, supported by stronger crude oil revenue.
Total revenue for the quarter rose to N199.8 billion, up 97.57 per cent from N101.1 billion in Q1 2024.
Crude oil sales accounted for the largest share of revenue at N142.1 billion, followed by refined products at N53.3 billion and gas at N4.4 billion.
In terms of market distribution, sales outside Nigeria contributed N142.1 billion, while domestic sales amounted to N57.7 billion.
Despite a steep rise in cost of sales, which more than tripled to N120.9 billion, up 214.26 per cent, the group recorded a gross profit of N78.8 billion, a 25.88 per cent improvement from the previous year.
Administrative expenses also rose sharply, climbing 149.21per cent to N15.9 billion. Nevertheless, Aradel’s core operational profit stood strong at N63.5 billion, representing a 79.14 per cent year-over-year increase.
Finance income for the quarter reached N4.1 billion, up from N3.2 billion in Q1 2024.
However, finance costs also increased significantly to N5.4 billion, a 62.67 per cent jump year-on-year.
On the balance sheet, Aradel Holdings reported total assets of N1.8 trillion, up 4.72 per cent from the prior year.
Retained earnings also grew, rising 8.54 per cent to N428.9 billion.
The Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade Comments: Aradel’s Q1, 2025 performance is in line with our desire to build on the momentum that the Company generated in 2024. The increase in crude production (and attendant revenues) was because of more volumes from the additional wells drilled, and the continued extended well test at the Omerelu Field. We expect an improvement in Q2, 2025.
On our gas output, we were challenged by gas pipeline issues during the quarter which also impacted on our liquids production. However, we resolved these at the end of the period and are putting in place measures that will limit the recurrence. These, coupled with the expansion and optimization of our throughput capacity across our evacuation lines, put us in a good position for the rest of the year.
The completion of the acquisition of SPDC by the Renaissance consortium on March 11, 2025, brings to a conclusion a landmark transaction that further enhances our long-term prospects for significant upsides in our pursuit of value creation.
An outcome of our 2024 financial performance was also the recommendation of NGN22/share in final year dividend. This is in addition to the interim dividend of NGN8/share declared in November 2024 and, combined, represents an increase of 200% over the 2023 payment of NGN10/share. We keep striving to ensure that our shareholders directly benefit from the financial performance of the Group.”