Aradel Holdings Plc, an indigenous integrated energy company, has restricted cash toward the acquisition of a 5 percent stake in Chappal Energies, reinforcing its strategic ambitions in the domestic energy sector.
The allocation was confirmed in Aradel’s cash flow report, where it noted a significant increase in restricted cash as part of preparations for the Chappal Energies acquisition, a transaction aimed at deepening its asset base and production capacity in Nigeria’s energy market.
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This announcement accompanies the release of the company’s unaudited Q1 2025 results, which revealed a 97.6 percent surge in revenue to N199.9 billion and a 55.3 percent growth in profit after tax to N34.2 billion, compared to Q1 2024.
The Group’s operating profit soared to N63.6 billion, a 79.1 percent increase from the prior year, driven by higher crude oil production volumes, improved throughput via the Trans Niger Pipeline (TNP), and efficient utilization of the Alternative Crude Evacuation (ACE) system. Crude oil sales hit 1.2 million barrels in Q1 2025, almost tripling from 0.39 million barrels in Q1 2024, and accounted for 71.1 percent of total revenue.
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Speaking on the company’s results, Aradel CEO, Adegbite Falade, said, “Our Q1 performance reflects the momentum we built in 2024. We benefited from new well completions and the extended well test at Omerelu, while our gas output was temporarily challenged by pipeline issues, which we have since addressed. Looking ahead, we are well-positioned for stronger results in Q2.”
