Aradel Holdings, an integrated energy company, has seen its after-tax profit grow 476 percent to N110.6 billion on revenue diversification, BusinessDay analysis shows.
Adegbite Falade, the chief executive officer of Aradel Holdings Plc said in a statement that the result was consolidated on the strong operational and financial improvements attained in 2023.
“We achieved increased diversification of our revenue streams on significantly improved hydrocarbons production, and material increases in the output from our refinery operations,” he stated.
Aradel Holdings’ revenue grew to N377.6 billion from N123 billion during the comparable periods.
The CEO of Aradels Holdings said Wells 14 and 15 have now been drilled and results have been favourable concluding the firm’s Phase 1, 4-well turnkey drilling campaign.
“To accommodate the expected incremental volumes, we also expanded the throughput capacity of our evacuation channels. These activities, among others, put us in a position to maintain the output and efficiency levels for the nine months of the year,” he said.
Read also: Aradel Holdings acquire 5.14% equity stake in Chappal Energies Mauritius
“Additionally, we completed the acquisition of the Olo and Olo West Marginal Fields from the TotalEnergies/NNPC Joint venture. This will further enhance our portfolio and create new opportunities for future production growth.
“This acquisition 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 of our business,” he said.
Aradel Holdings Plc has entered into an agreement to acquire 5.14 percent equity interest in Chappal Energies Mauritius Limited (Chappal).
Chappal is an energy company focusing on investments in deep value and brownfield upstream opportunities within Africa.
On December 6, 2024, Chappal announced the acquisition of Equinor Nigeria Energy Company Limited (ENEC), which holds a 53.85 percent ownership in oil and gas lease OML 128, including the unitised 20.21 percent stake in the Agbami oil field, operated by Chevron.
Since production started in 2008, the Agbami field has produced more than one billion barrels of oil, creating value for the Nigerian society and the various stakeholders.
As part of the deal, Chappal will assume the operatorship of OML 129, which includes several significant prospects and undeveloped discoveries (Nnwa, Bilah and Sehki).
Commenting on the deal,Falade, CEO of Aradel Holdings Plc stated that “this acquisition is in line with diversifying our asset base, deepening our gas competences and gaining access to offshore basins using low risk approaches.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource. We are committed to the cause of developing the significant value inherent in the assets, which will be extremely beneficial to the country.
“Aradel hopes to bring its proven execution competencies to bear in supporting Chappal’s development of these opportunities,” Falade added.
The board has proposed the payment of an interim dividend of N8 per share. The Interim dividend of N8 per Ordinary Share of N0.50 each, (subject to appropriate withholding tax) will be paid to shareholders whose names appear in the Register of Shareholders as at the close of business on 20 November 2024.
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