Update shared on 09 Nov 2025
Author: Adebara Qudus (Founder of Wane Investment House)
Aradel Holdings Plc delivered a solid performance in the nine months ended 30 September 2025, reaffirming its resilience and operational depth across the upstream, midstream, and downstream segments. The company achieved a 122% year-on-year growth in Profit After Tax to ₦245.1 billion (9M 2024: ₦110.6 billion), driven by higher production volumes and effective cost discipline.
Operational Performance
- Crude Oil Output: Total crude and condensate production rose 24% YoY to 4.17 mmbbls, with average daily output up 25% to 15,300 bbls/day (9M 2024: 12,300 bbls/day). This was supported by improved well optimization, production reliability at Ogbele, and sustained contribution from Omerelu Field.
- Gas Business: Gas production volumes surged 27% to 13.81 Bcf, translating to average daily production of 50.6 mmscf/d, up from 36.5 mmscf/d in 9M 2024. This growth was bolstered by new well commissioning and a successful gas system revamp project.
- Refinery Operations: Refined product volumes rose 40% YoY to 235.7 million litres, driven by improved refinery uptime, steady feedstock supply, and operational efficiency. Automotive Gas Oil (AGO) and Naphtha accounted for over 60% of total refined volumes.
Financial Performance
- Revenue: Up 43% YoY to ₦538.8 billion (9M 2024: ₦377.6 billion), reflecting strong growth across all business segments.
- Crude oil sales grew 36% to ₦341.4 billion, supported by higher output and stable evacuation routes via the TNP and ACE systems.
- Refined product revenue increased 58% to ₦163.1 billion, accounting for 30% of total turnover.
- Gas revenue advanced 11% to ₦34.3 billion, underpinned by higher volumes and improved realized prices ($1.64/mscf vs. $1.58/mscf).
- Cost of Sales: Rose 82% YoY to ₦304.1 billion (9M 2024: ₦166.8 billion), reflecting increased operational activities, royalty obligations, and well maintenance expenditure.
- Net Finance Costs: Increased to ₦6.0 billion (up 394%) on account of additional borrowings used to fund the SPDC acquisition and working capital needs.
- Total Assets: Expanded 12% year-to-date to ₦2.0 trillion (FY 2024: ₦1.7 trillion), buoyed by new acquisitions including a 6.01% stake in Chappal Energies Mauritius and completion of the SPDC transaction.
- Cash at Bank: ₦399.5 billion
- Total Borrowings: ₦206.5 billion (FY 2024: ₦96.4 billion)
Strategic and Corporate Highlights
- Completed the acquisition of Olo and Olo West Marginal Fields and agreed to purchase an additional 40% equity stake in ND Western Limited, deepening its footprint in Nigeria’s oil and gas value chain.
- Acquired the Ever Depot storage facility in Port Harcourt (JV with Waltersmith), enhancing crude and refined product storage capacity.
- Maintained 8.5 million manhours without Lost Time Injury (LTI), reaffirming world-class HSE performance.
- Celebrated 20 consecutive years of uninterrupted production, underscoring operational resilience.
Outlook
Aradel remains well-positioned to sustain its growth trajectory through disciplined capital deployment, enhanced production efficiency, and diversification into energy transition assets. Management’s continued emphasis on operational excellence, prudent financial management, and strategic expansion provides a solid foundation for long-term value creation.
Disclaimer
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