Aradel’s half-year profit rises to N146bn on increased oil output

Aradel Holdings Plc Group recorded a N146.3 billion profit after tax for the half year ended June 30, 2025, reflecting a solid 41 percent year-on-year growth from the N104.4 billion posted in the same period of 2024, driven by stronger revenues, rising investment, and finance income.

The Group’s total revenue rose to N368 billion, up from N268 billion in H1 2024, supported by increased crude oil output and favourable market prices across its upstream and midstream businesses.

Despite an uptick in the cost of sales to N204 billion, from N106 billion, the gross profit expanded to N163 billion, affirming the Group’s ability to deliver value under tight economic conditions.

Operating profit stood at N118.6 billion, a 21 percent decline from N150 billion in the previous year. This was driven by a 183 percent rise in general and administrative expenses as inflation and increased operational costs worsened.

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However, other income rose to N8.6 billion. Finance income more than doubled to N12.4 billion, reflecting better returns on cash and financial assets.

Aradel Holdings Group’s balance sheet remained healthy, with total assets rising to N1.81 trillion from N1.74 trillion at the end of December 2024. This increase was driven by expansion in property, plant, and equipment up to N664 billion, as well as stronger trade and other receivables. Total equity improved to N1.45 trillion, backed by reserves and retained earnings from its consistent profitability.

While net cash flow from operating activities declined to N140 billion from N165 billion in December 2024, the reduction was mainly due to increased working capital needs. The Group spent N179 billion on capital investments and disbursed N95 billion through financing activities, primarily on dividend payouts.

Cash and cash equivalents during the period amounted to N342 billion.

As of July 31, Aradel’s share price stood at N514.10, giving the company a market capitalisation of N2.23 trillion.

Chinwe Michael

Chinwe Michael is a financial inclusion advocate and economy journalist who uses compelling storytelling to drive awareness. With a background in Banking and Finance and experience across accounting, media, and education, she applies sharp analysis and attention to detail to every piece. She simplifies complex financial and economy concepts into engaging content for Africa and global audience. Chinwe also doubles as a speaker with global recognition for her expertise.