Aradel Holdings Plc closed the first half of 2025 with stronger earnings despite weaker crude prices and mounting cost pressures, as rising crude output, higher refined product sales and record gains from associate companies lifted the bottom line.
The indigenous energy company reported a profit after tax of N146.4 billion, a 40 percent increase from N104.4 billion a year earlier.
Crude exports remained the mainstay of performance, accounting for N232.8 billion or 63 percent of revenue, compared with N171.1 billion last year.
This was supported by a 20 percent rise in daily crude output to 15,508 barrels and improved use of the Trans Niger Pipeline and Alternative Crude Evacuation system. The average realised oil price, however, slipped to $73.6 per barrel from $87.5.
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Here are nine highlights of the results:
Total revenue climbed 37.2 percent to N368.1 billion, boosted by stronger crude, refined products and gas sales. Refined product volumes rose by a third to 165.3 million litres, while gas revenue grew 22 percent to N18.8 billion.
Despite higher sales, operating profit fell 21 percent to N118.6 billion, with the margin narrowing to 32.2 percent from 56 percent.
Cost of sales almost doubled to N204.9 billion, driven by higher royalties, depreciation from new wells, crude handling charges, and maintenance expenses linked to new field activities.
General and administrative costs surged 184 percent to N53.1 billion, largely from a new share-based incentive scheme that raised staff costs by more than fourfold.
Profit contributions from ND Western and Renaissance Africa Energy quadrupled to N71.3 billion, reflecting Renaissance’s consolidation of the SPDC acquisition. The profit from the company’s associates helped lift the bottom line.
Profit after tax grew to N146.4 billion, supported by lower effective tax charges and stronger non-operated asset income.
Operating cash flow eased 15 percent to N140.8 billion, reflecting the payment of N38.9 billion in 2024 tax liabilities and delays in gas sales proceeds worth N38.2 billion.
Total assets rose 3.5 percent to N1.81 trillion, with equity also up 3.5 percent to N1.45 trillion, aided by retained earnings despite dividend payouts.
The board saw key changes, with Osten Olorunsola appointed chairman and four new directors joining to strengthen oversight and succession planning.
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Commenting on the results, Adegbite Falade, the company’s chief executive officer said: “We recorded strong operational performance, driven by stable average production volumes.
“Our recent investment in Renaissance has already begun yielding positive returns, and we remain focused on enhancing shareholder value, maintaining operational excellence, and delivering responsibly in today’s changing energy landscape.”
Aradel’s results underscore its growing reliance on associate contributions and downstream operations to balance the volatility of crude exports. Still, surging costs remain a challenge that will test the company’s ability to defend margins in the second half of the year.
