Aradel Holdings Plc, Nigeria’s first integrated indigenous energy Company has announced its unaudited results for the half-year (H1) period ended June 30, 2023. The company’s revenue increased by 217.6percent to N74.5 billion (H1 2022: N23.5 billion).
This was driven by: increase in crude oil revenue (53.2percent of total revenue) to N39.6 billion, due to increased availability of the Trans Niger Pipeline (TNP), in addition to the value from utilising the Alternative Crude Evacuation (ACE).
The company also recorded 28.5percent increase in gas revenue (4.9percent of total) to N3.7 billion (H1 2022: N2.8 billion; 12.2percent of total revenue); 51.6percent increase in refined products (41.9percent of total) to N31.2 billion (H1 2022: N20.6 billion; 87.8percent of total revenue).
Average realised price/barrel (bbl) from crude oil operations (refining plus crude export) was $/100.8bbl. Gross profit increased to N49.8 billion (H1 2022: N9.6 billion), while it recorded operating profit of N29.8billion (H1 2022: N5.1 billion). Profit before tax (PBT) of N27.9 billion, went up by 269percent year-on-year (H1 2022: loss N7.5 billion).
Profit after tax (PAT) increased by 173.9percent to N13.1 billion (H1 2022: N4.8 billion. The Company generated cash flows from operations of N55.7 billion in H1 2023, implies an increase of 175.2percent (H1 2022: N20.2 billion), and net cash flows from operating activities of N55.1 billion was also up 182percent (H1 2022: N19.5 billion).
Adegbite Falade, Chief Executive Officer/Managing Director, Aradel Holdings said, “Aradel Holdings consolidated on the gains arising from the initiatives it embarked on in the second half of 2022. Revenues, Operating Profit, EBITDA, Profit After Tax and free cash flows increased significantly over the prior period, mainly because the Company has begun to benefit from executing the plans crafted to ensure optimum production and refining”.
“The Alternative Crude Oil Evacuation project was a significant value driver for our operations in the first half of the year: after a slow start in Q1, 2023 (lifting ~100kbbls), the Company was able to transport 400kbbls through the ACE in H1, 2023, as we sought approaches that ensured that production was not significantly curtailed during the period.
“These initiatives also resulted in the increased refining capacity of 35percent, the improved outcome mainly due to the debottlenecking exercises completed in fourth-quarter (Q4), 2022. We completed the drilling of Well-12 and Well-13, both with promising results, and expect to spud Well-14 in Q3, 2023. The completed wells are poised to add to our crude oil and gas production, underscoring our standing promise to increase value-creation for our shareholders.
These positive outcomes are expected to lead to increased value for the Company, its shareholders, and the country, and we believe that they will hold (and be improved upon) till the end of the financial year,” Falade said.