Aradel Holdings grows half year profit by 695% to N104bn

Aradel Holdings Plc has announced its unaudited half year (H1) results for the period ended June 30, 2024. The integrated indigenous energy company reported profit before tax (PBT) of N162.3 billion, up by 482.2 percent (H1’2023: N27.9 billion). Profit after tax (PAT) increased by 694.6 percent to N104.4 billion (H1 2023: N13.1 billion).

Adegbite Falade, Chief Executive Officer, Aradel Holdings Plc said the Company’s performance in the first half of 2024 consolidated on the improved operational and financial performance from 2023.

“We achieved increased diversification of our revenue streams on significantly improved hydrocarbons production, and material increases in the output from our refinery operations. Wells 14 and 15 have now been drilled – and results have been favourable – concluding our Phase 1, 4-well turnkey drilling campaign.

“To accommodate the expected incremental volumes, we also expanded the throughput capacity of our Alternative Crude Evacuation (ACE) operations. These activities, among others, put us in a position to maintain the output and efficiency levels for the second half of the year.

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“Omerelu field appraisal was completed, and first oil was achieved via re-entry of well 2ST in May 2024. Extended Well Testing is ongoing, in accordance with regulatory approvals,” Falade said.

The company’s revenue increased by 260.2 percent to N268.3 billion (H1 2023: N74.5 billion). This revenue growth according to the company was driven by: 332.2 percent increase in export crude oil revenue (63.8 percent of total revenue) to N171.1 billion (H1 2023 N39.6 billion; 53.2 percent of total), “attributed to increased production levels, significant impact of improved utilisation of the Trans Niger Pipeline (TNP) on which there has been reduced crude losses, and additional value from the ACE route with resultant higher crude oil lifting of 1.5Mbbls in H1 2024 vs 1.1Mbbls in H1 2023”.

Gas revenue recorded a 321.8 percent increase to N15.5 billion (5.8 percent of total), due to higher production volumes (H1 2023: N3.7 billion; 4.9percent of total revenue). The company recorded operating profit of N150.3 billion (H1 2023: N29.8 billion).