Aradel Holdings Plc (Aradel), an integrated energy company with operations in upstream, midstream, downstream, power, and renewables, saw its after-tax profit grow almost sixfold to N110.6 billion in the nine months of 2024, BusinessDay analysis shows.
The energy company recorded an increase in after-tax profit to N110.6 billion in the nine months of 2024 from N19.2 billion in the same period of 2023.
Aradel Holdings Plc recently announced the acquisition of a 5.14 percent equity stake in Chappal Energies Mauritius Limited (Chappal), an energy company specialising in deep value and brownfield upstream opportunities across Africa.
This strategic investment follows Chappal’s recent Equinor Nigeria Energy Company Limited (ENEC) acquisition on December 6, 2024. ENEC holds a 53.85 percent stake in Oil Mining Lease (OML) 128, which includes a 20.21 percent unitised stake in the Agbami Oil field, operated by Chevron.
Since commencing production in 2008, the Agbami field has delivered over 1 billion barrels of oil, contributing significantly to Nigeria’s economy.
Additionally, as part of the deal, Chappal will take over the operatorship of OML 129, which hosts several major undeveloped discoveries, including Nnwa, Bilah, and Sehki. The Nnwa discovery is a part of the Nnwa-Doro field, a vast gas resource with immense potential to generate value for Nigeria.
According to the company in a notice to the NGX, the minister of petroleum resources has officially granted consent for selling Shell Petroleum Development Company (SPDC) to Renaissance Africa Energy Limited (Renaissance).
This ministerial approval marks a significant step forward in the transaction process, following the Sale and Purchase Agreements announcement in January 2024.
The company noted that as a shareholder in Renaissance, Aradel Holdings has expressed its satisfaction with this development, emphasizing its importance to the strategic goals of the company and the broader energy industry in Nigeria.
Read also: Aradel Holdings after-tax profit jumps almost six-folds on revenue diversification
“This approval is a pivotal moment in our journey to solidify our commitment to fostering growth and innovation in the energy sector,” he said.
The Shell Petroleum Development Company has long been a significant player in Nigeria’s oil and gas sector. Its acquisition by Renaissance, supported by Aradel Holdings, represents a shift toward localized and diversified energy investments.
The deal aligns with the government’s efforts to encourage indigenous participation and strengthen the industry’s capacity to meet growing energy demands.
Aradel noted that further details regarding the transaction would be shared in due course, as Renaissance moves closer to finalising the acquisition process.
Here are five key highlights from Aradel Holdings’ financial books.
After-tax profit grew almost sixfold
Aradel Holdings’ after-tax profit grew 476 percent to N110.6 billion in the nine months of 2024 from N19.2 billion in the same period of 2023.
Finance costs grew marginally
Finance costs grew to N11.5 billion in the nine months of 2024 from N10.2 billion in the nine months of 2023.
Cost of sales grew 211 percent
The firm’s cost of sales grew to N166.8 billion from N53.7 billion during the period reviewed.
Revenue surged 207 percent
Aradel Holdings’ revenue grew to N377.6 billion from N123 billion during the comparable periods.
Interim dividend of N8 per ordinary share of N0.50
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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