Lagos, Nigeria – August, 2025 – Aradel Holdings Plc (“Aradel”, “Aradel Holdings”, “the Company” or “the Group”), Nigeria’s leading integrated indigenous energy company, announces its unaudited half year results for the period ended 30 June 2025.
Group Financial Highlights
| 30 June 2025 | 30 June 2024 | Variance | |
| ₦’billion | ₦’billion | % | |
| Revenue | 368.1 | 268.3 | 37.2 |
| Operating Profit | 118.6 | 150.3 | (21.1) |
| Operating Profit Margin | 32.2% | 56.0% | (2378bps) |
| EBITDA | 176.4 | 189.7 | (7.0) |
| EBITDA Margin | 47.9% | 70.7% | (2280bps) |
| Profit Before Tax | 191.3 | 162.3 | 17.9 |
| Share of profit of associates | 71.3 | 13.5 | 429.8 |
| Profit After Tax | 146.4 | 104.4 | 40.2 |
| Earnings per Share | 33.3 | 24.0 | 38.8 |
| Operating Cashflow | 140.8 | 165.4 | (14.9) |
| Capital Expenditure | 48.1 | 49.2 | (2.2) |
| Total Assets | 1,810.7 | 1,749.8 | 3.5 |
| Total Equity | 1,453.2 | 1,404.1 | 3.5 |
Operational Highlights
- Production and Refining:
- Crude oil production of 15,508 bbls/day, up 7% (H1 2024: 12,957 bbls/day)
- Gas production of 2 mmscfd (7,276 boepd), up by 1.5% (H1 2024: 40.4 mmscfd (7,132 boepd))
- Refined petroleum products sold 3 mmltres, up by 32.7% (H1 2024: 122.2 mmltres)
- Average realised crude oil price (exported) per barrel of $73.6 (H1 2024: $87.5)
- Average realised gas price per mscf of $1.7 (H1 2024: $1.5)
The Chief Executive Officer of Aradel Holdings Plc, Mr. Adegbite Falade Comments:
“The first half of 2025 was shaped by both opportunities and challenges for Nigeria’s oil and gas industry. Global geopolitical tensions continued to drive supply uncertainties and price volatility, while local operating conditions, from infrastructure to regulatory transitions, demanded resilience and adaptability.
In the face of this dynamic landscape, our Company remains focused and forward-looking. We recorded strong operational performance, driven by stable average production volumes.
We made significant progress on our strategic growth agenda. We successfully completed the acquisition of equity interest in Chappal Energies Mauritius Limited. Furthermore, our recent investment in Renaissance Africa Energy Company (Renaissance’), our deemed associate, has yielded positive returns, with our share of its performance featuring in Aradel’s books for the first time. ND Western Limited and Renaissance Africa Energy Company are expected to remain significant contributors to our bottom-line from non-operated assets into the future. The consistent performance of our associate companies underscores the strategic value of our stake and supports our broader portfolio diversification objectives.
We extend our sincere gratitude to Mr. Ladi Jadesimi, Mr. Ede Osayande, and Mr. Thierry Georger, who stepped down from Aradel’s Board after several years of dedicated service, in line with statutory tenure limitations. We also welcome new members to our Board during the first half of the year, enhancing the breadth of experience and diversity of thought at the highest level of our governance structure. The new additions to the Board are Ms. Kerin Gunter, Mr. Olusola Adeeyo, Mr. George Osahon, and Mr. Mahmud Tukur. These changes reflect our commitment to strong stewardship and future-ready leadership.
As we look ahead to the second half of the year, we remain focused on executing our strategic priorities: enhancing shareholder value, maintaining operational excellence, and delivering responsibly in today’s changing energy landscape.”
Financial Review
Foreign exchange dynamics continued to impact on the financial performance of the Group, although, H1 2025 witnessed a lesser pace of naira devaluation year on year. The average exchange rate in H1 2025 was
₦1,550:US$1 relative to ₦1,345:US$1 in H1 2024.
Revenue increased by 37.2% to ₦368.1 billion (H1 2024: ₦268.3 billion). This was driven by:
- 0% increase in export crude oil revenue (63.2% of total revenue) to ₦232.8 billion (H1 2024 ₦171.1 billion; 63.8% of total), driven by increased production levels, improved utilisation of the Trans Niger Pipeline (TNP), minimal crude losses and additional value from the Alternative Crude Evacuation (ACE) system, resulting in higher crude oil sales of 2.04 mbbls in H1 2025 (H1 2024: 1.46 mbbls), despite drop in realised crude oil price (exported) per barrel to $73.6 (H1 2024: $87.5)
- 6% increase in refined products revenue (31.6% of total revenue) to ₦116.5 billion (H1 2024: ₦81.7 billion; 30.4% of total revenue) due to higher sales volume of 165.3 mmltres, up by 32.7% (H1 2024: 122.2 mmltres).
- 7% increase in gas revenue to ₦18.8 billion (5.2% of total revenue), due to higher production volumes (H1 2024: ₦15.5 billion; 5.8% of total revenue) as well as higher realised gas price per mscf of $1.7 (H1 2024: $1.5).
Cost of sales (COS)1 increased by 91.8% to ₦204.9 billion (H1 2024: ₦106.9 billion). This was primarily driven by:
- Royalties & Other Statutory expenses (28.4% of COS increased by 8% to ₦58.3 billion (H1 2024:
₦23.1 billion). This was driven by higher production, additional royalty provisions, NDDC Levy provisions and other activity levels during the period.
- Depreciation (27.6% of COS) increased by 1% to ₦56.6 billion (H1 2024: ₦38.2 billion), arising from higher hydrocarbon production, and the addition of newly capitalised Well 16 in Ogbele field.
- Crude Handling Charges (23.8% of COS) which rose by 5% to ₦48.9 billion (H1 2024: ₦36.3 billion) due to growing activity along the Trans Niger Pipeline (TNP) and Alternative Crude Evacuation (ACE) operations.
- Operational and maintenance expenses (12.6% of COS) grew by 6% to ₦25.8 billion (H1 2024:
₦6.5 billion) owing to crude oil evacuation activities at Omerelu, provisions for host communities development trust contributions arising from the PIA and well maintenance services.
- Stock adjustment (7.1% of COS) increased to ₦14.6 billion (H1 2024: credit of ₦6.9 billion) as a result of lower inventory levels in H1 2025.
- Provision no longer required, a credit of ₦13.3 billion, relates to the writeback of Asset Retirement Obligation (ARO) provision following the revision of oil and gas estimates in the refinery business.
General and Administrative (G&A) expenses increased by 184.1% to ₦53.1 billion (H1 2024: ₦18.7 billion). The major drivers include:
- Staff costs (64.4% of G&A expenses) rose by 436.7% to ₦34.2 billion (H1 2024: ₦6.4 billion) primarily due to the commencement of the cash-settled share-based incentive scheme in Q4 2024, staff additions and employee remuneration review.
- Permits, licenses and subscription (10.2% of G&A expenses) increased by 197.2% to ₦5.4 billion (H1 2024: ₦1.8 billion) arising from increase in technology subscription expenses.
- Other expenses2(7.4% of G&A expenses) increased by 62.7% to ₦3.9 billion (H1 2024: ₦2.4 billion) arising from increased catering and other related administrative costs following the commencement of operations in Omerelu.
Operating profit of ₦118.6 billion, down 21.1% (H1 2024: ₦150.3 billion) from higher business operating costs in the period and drop in the realised price of crude oil despite higher sales across all products in H1 2025.
Finance costs increased by 109.0% to ₦12.5 billion (H1 2024: ₦6.0 billion) driven primarily by additional borrowings to finance the SPDC acquisition. Finance Income increased by 49.2% to ₦11.1 billion (H1 2024:
₦7.4 billion) resulting from interest-bearing investments of cash and cash equivalents.
1 Includes stock adjustment of ₦14.6 billion. Without the stock adjustment COS would be ₦205.2 billion
2 which consists of catering, printing and stationery, training, donations and other related administrative costs
Profit before tax of ₦191.3 billion, up by 17.9% (H1 2024: ₦162.3 billion), with an Income tax expense estimate of ₦44.9 billion (Cash Tax ₦39.7 billion and Deferred tax ₦5.2 billion), relative to H1 2024 tax expense of ₦57.9 billion.
Share of profit of associates of ₦71.2billion represents contributions from ND Western Limited and Renaissance Africa Energy Company.
Profit after tax increased by 40.2% to ₦146.4 billion (H1 2024: ₦104.4 billion).
Year-to-date growth in total assets of 3.5% to ₦1.8 trillion (FY 2024: ₦1.7 trillion). This increase is primarily attributable to;
- The acquisition of 01% equity stake in Chappal Energies Mauritius Limited, an energy company focused on investments in deep value and brownfield upstream opportunities within Africa.
- The completion of Renaissance Africa Energy Holdings acquisition of the entire (100%) equity holding in the Shell Petroleum Development Company of Nigeria (SPDC) in H1 Aradel holds a total equity stake of 33.3% (12.5% direct stake and 20.8% through ND Western’s 50% equity stake) in Renaissance.
Total liabilities rose by 3.4% to ₦357.5 billion (FY 2024: ₦345.7 billion). This increase is attributable to additional debts in respect of the SPDC acquisition and tax liability estimates from H1 2025 performance.
Total equity increased by 3.5% to ₦1.45 trillion (FY 2024: ₦1.40 trillion) primarily due to the retention of total comprehensive income over the period.
Cash flows from operating activities
The Company generated cash flows from operations of ₦179.7 billion (H1 2024: ₦169.6billion), representing an increase of 6.0%. H1 2025 performance was impacted by the settlement of income tax liabilities for 2024 FY assessment amounting to ₦38.9 billion and non-receipt gas sales & other proceeds worth ₦38.2 billion (to be received in Q3 2025).
Cash flows from investing activities
Net cash flow used in investing activities was N97.1 billion, up 112.4% (H1 2024: N45.7 billion). This increase is mainly driven by cash-financed investment in Renaissance amounting to ₦21.3 billion in H1 2025 and investment of N34.9 billion in Chappal Energies.
Cash flows from financing activities
Net cash flows used in financing activities rose to N112.2 billion, up 99.6% (H1 2024: N56.2 billion), due to payment of dividends.
Dividend Payment
In line with our commitment to delivering value to shareholders, the final dividend of N22 for FY 2024, approved at the AGM was fully paid in H1 2025.
Corporate Governance Updates
The following key changes were made to the Board of Directors during the first half of the year:
- Osten Olorunsola was appointed as Chairman of the Board, effective 9 July 2025, following the retirement of Mr. Ladi Jadesimi
- Kerin Gunter as Nominee Director of Petrolin Group
- Mahmud Tukur and Mr. George Osahon were appointed as Independent Non-Executive Directors
- Olusola Adeeyo was appointed as Non-Executive Director
Responsibility for publication
The Board member responsible for arranging the release of this announcement on behalf of Aradel Holdings is Adegbola Adesina, CFO Aradel Holdings Plc.
Consolidated statement of profit or loss and other comprehensive income for the period ended 30 June 2025
| In thousands of naira | 30-Jun-2025 | 30-Jun-2024 |
| Revenue | 368,076,934 | 268,314,455 |
| Cost of Sales | (204,918,751) | (106,860,608) |
| Gross Profit | 163,158,183 | 161,453,847 |
| Other Income/(loss) | 8,608,125 | 7,525,645 |
| General and administrative expenses | (53,150,549) | (18,710,208) |
| Operating Profit | 118,615,759 | 150,269,284 |
| Finance Income | 12,499,193 | 5,981,114 |
| Finance Costs | (11,082,448) | (7,426,549) |
| Net Finance income/(cost) | 1,416,745 | (1,445,435) |
| Share of profit of an associate | 71,279,781 | 13,455,090 |
| Profit before taxation | 191,312,285 | 162,278,939 |
| Tax expense | (44,918,447) | (57,852,645) |
| Profit after taxation | 146,393,838 | 104,426,294 |
| Profit/(loss) attributable to: | ||
| Equity holders of the parent | 144,529,507 | 104,130,462 |
| Non-controlling interest | 1,864,331 |
295,832 |
| 146,393,838 | 104,426,294 | |
| Other comprehensive income: | ||
| Other comprehensive income item that may be
reclassified to profit or loss in subsequent years (net of tax): |
||
| Foreign currency translation difference |
1,006,738 |
259,976,983 |
| Share of other comprehensive income of associate accounted for using the equity method | (3,901,946) | 172,754,152 |
| Other comprehensive income item that will not be reclassified to profit or loss in subsequent years (net of tax): | ||
| Net gain on equity instruments at fair value through other comprehensive income | 1,303,321 | 495,800.00 |
| Other comprehensive income for the year, net of tax | (1,591,887) | 433,226,935 |
| Total comprehensive income for the year | 144,801,951 | 537,653,229 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent | 142,047,237 | 535,234,705 |
| Non-controlling interest | 2,754,714 | 2,418,524 |
| Basic earnings per share | ₦33.3 | ₦24.0 |
Consolidated statement of financial position as at 30 June 2025
| In thousands of naira | 30-Jun-2025 | 31-Dec-2024 |
| Non-current assets | ||
| Property, plant, and equipment | 664,868,121 | 676,637,344 |
| Intangible assets | 1,104,496 | 1,251,000 |
| Financial assets | 56,653,704 | 43,288,424 |
| Investment in associate | 649,815,616 | 489,968,207 |
| Total non-current assets | 1,372,441,937 | 1,211,144,975 |
| Inventories | 41,609,739 | 46,902,252 |
| Trade and other receivables | 41,638,381 | 68,753,253 |
| Prepayments | 327,733 | 332,982 |
| Financial assets | 2,314,184 | 496,045 |
| Cash and bank | 352,404,533 | 422,206,116 |
| Total current assets | 438,294,570 | 538,690,648 |
| Total assets | 1,810,736,507 | 1,749,835,623 |
| Equities and Liabilities | ||
| Shareholders’ equity | ||
| Share capital | 2,172,422 | 2,172,422 |
| Share premium | 22,819,670 | 22,819,670 |
| Translation reserve | 963,689,281 | 967,474,872 |
| Fair value reserve of financial assets at FVOCI | 9,076,746 | 7,773,425 |
| Retained earnings | 444,153,283 | 395,210,352 |
| Non-controlling interest | 11,300,862 | 8,659,222 |
| Total shareholders’ equity | 1,453,212,264 | 1,404,109,963 |
| Non-current liabilities | ||
| Borrowings | 40,069,962 | 40,945,047 |
| Deferred tax liabilities | 58,252,086 | 53,351,684 |
| Decommissioning liabilities | 24,462,890 | 36,940,108 |
| Total non-current liabilities | 122,784,938 | 131,236,839 |
| Current liabilities | ||
| Trade, share-based payment and other payables | 98,423,045 | 120,852,179 |
| Contract liabilities | 1,328,249 | 2,780,114 |
| Taxation | 36,113,880 | 35,402,305 |
| Borrowings | 98,874,131 | 55,454,223 |
| Total current liabilities | 234,739,305 | 214,488,821 |
| Total liabilities | 357,524,243 | 345,725,660 |
| Total equity & liabilities | 1,810,736,507 | 1,749,835,623 |
| In thousands of naira | 30-Jun-2025 | 30-Jun-2024 |
| Profit before taxation | 191,312,285 | 162,278,939 |
| Adjustments: | ||
| Interest expense | 11,082,448 | 7,426,549 |
| Interest income | (12,499,193) | (5,981,114) |
| Dividend received | (32,046) | (137,110) |
| Exchange (gain)/loss | 255,062 | (6,863,230) |
| Share of profit from associate | (71,279,781) | (13,455,090) |
| Loss on Financial Asset at FV through PorL | 2,565,177 | 2,033,446 |
| Depreciation of property, plant and equipment | 57,739,374 | 39,458,735 |
| Provision no longer required | (13,290,014) | – |
| Gain on disposal of property, plant and equipment | (46,161) | – |
| Stock adjustment | 14,557,907 | (6,893,915) |
| Operating cash flows before movement in working capital | 180,365,058 | 177,867,210 |
| Movement in working capital: | ||
| Decrease in trade and other receivables | 30,294,785 | 2,039,301 |
| Decrease/(Increase) in prepayments | 5,249 | (386,572) |
| (Increase)/Decrease in inventory | (9,265,394) | 472,541 |
| Increase in restricted cash | 38,349 | (8,059,446) |
| Decrease in trade, share-based payments and other payables | (20,332,408) | (1,368,392) |
| Decrease in contract liabilities | (1,451,865) | (1,053,117) |
| Cash generated by operating activities | 179,653,774 | 169,511,525 |
| Tax paid | (38,874,386) | (4,085,494) |
| Net cash flows from operating activities | 140,779,388 | 165,426,031 |
| Investing activities | ||
| Interest received | 9,015,175 | 5,981,114 |
| Dividend received | 4,197,214.00 | 137,110 |
| Purchase of property, plant and equipment | (48,145,747) | (49,211,670) |
| Proceeds from disposal of assets | 46,161.00 | – |
| Purchase of financial assets | (45,470,462) | (2,618,408) |
| Proceeds from liquidation of financial asset | 4,592,146 | – |
| Investment in Associate | (21,310,163) | – |
| Net cash used in investing activities | (97,075,676) | (45,711,854) |
| Financing activities | ||
| Dividend paid | (95,586,576.00) | (36,931,177.00) |
| Dividend paid to NCI holders | (113,074.00) | – |
| Interest paid | (4,527,053) | (4,680,090) |
| Repayment of borrowing | (11,932,141) | (14,570,294) |
| Net cash flows used in financing activities | (112,158,844) | (56,181,561) |
| Decrease/(Increase) in cash and cash equivalents | (68,455,132) | 63,532,616 |
| Cash and cash equivalents – Beginning of year | 411,801,252 | 183,008,535 |
| Exchange rate effects on cash and cash equivalents | (1,308,102) | 154,222,169 |
| Cash and cash equivalents – End of period | 342,038,018 | 400,763,320 |
30 June 2025 (US Dollars)
| In thousands of dollars | 30-Jun-2025 | 30-Jun-2024 |
| Revenue | 237,497 | 206,212 |
| Cost of sales | (132,222) | (81,064) |
| Gross profit | 105,275 | 125,148 |
| Other income/(loss) | 5,557 | (14,215) |
| General and administrative expenses | (34,291) | (14,335) |
| Operating profit | 76,541 | 96,598 |
| Finance income | 8,064 | 4,838 |
| Finance costs | (7,150) | (5,808) |
| Net Finance income/(cost) | 914 | (970) |
| Share of profit of an associate | 45,992 | 10,002 |
| Profit before taxation | 123,447 | 105,630 |
| Tax expense | (28,983) | (43,006) |
| Profit after taxation | 94,464 | 62,624 |
| Profit/(loss) attributable to: | ||
| Equity holders of the parent | 93,261 | 62,652 |
| Non-controlling interest | 1,203 | (28) |
| 94,464 | 62,624 | |
| Other comprehensive income: | ||
| Net gain on equity instruments at fair value through other comprehensive income | 635 | 231 |
| Other comprehensive income for the year, net of tax | 635 | 231 |
| Total comprehensive income for the year | 95,099 | 62,855 |
| Total comprehensive income attributable to: | ||
| Equity holders of the parent | 93,896 | 62,883 |
| Non-controlling interest | 1,203 | (28) |
| Basic earnings per share | $0.021 | $0.014 |
| In thousands of dollars | 30-Jun-2025 | 31-Dec-2024 |
| Non-current assets | ||
| Property, plant, and equipment | 434,777 | 440,715 |
| Intangible assets | 723 | 815 |
| Financial assets | 36,556 | 28,196 |
| Investment in associate | 424,936 | 319,131 |
| Total non-current assets | 896,992 | 788,857 |
| Inventories | 27,210 | 30,547 |
| Trade and other receivables | 27,227 | 44,780 |
| Prepayments | 214 | 218 |
| Financial assets | 1,513 | 323 |
| Cash and bank | 230,450 | 274,994 |
| Total current assets | 286,614 | 350,862 |
| Total assets | 1,183,606 | 1,139,719 |
| Equities and Liabilities | ||
| Shareholders’ equity | ||
| Share capital | 19,316 | 19,316 |
| Share premium | 78,955 | 78,955 |
| Fair value reserve of financial assets at FVOCI | 6,641 | 6,006 |
| Retained earnings | 836,962 | 803,446 |
| Non-controlling interest | 7,390 | 6,258 |
| Total shareholders’ equity | 949,264 | 913,981 |
| Non-current liabilities | ||
| Borrowings | 26,770 | 27,237 |
| Deferred tax liabilities | 38,093 | 34,749 |
| Decommissioning liabilities | 15,997 | 24,060 |
| Total non-current liabilities | 80,860 | 86,046 |
| Current liabilities | ||
| Trade, share-based payment and other payables | 64,340 | 78,703 |
| Contract liabilities | 869 | 1,811 |
| Taxation | 23,616 | 23,059 |
| Borrowings | 64,657 | 36,119 |
| Total current liabilities | 153,482 | 139,692 |
| Total liabilities | 234,342 | 225,738 |
| Total equity & liabilities | 1,183,606 | 1,139,719 |
| In thousands of dollars | 30-Jun-2025 | 30-Jun-2024 |
| Profit before taxation | 123,447 | 105,630 |
| Adjustments: | ||
| Interest expense | 7,150 | 5,808 |
| Interest income | (8,064) | (4,838) |
| Dividend received | (21) | (98) |
| Exchange loss | 162 | 14,651 |
| Share of profit from associate | (45,992) | (10,002) |
| Hedge cost in PorL | 1,655 | 1,429 |
| Depreciation and amortisation | 37,256 | 29,333 |
| Provision no longer required | (8,575) | – |
| Gain on disposal of equipment | (30) | – |
| Stock adjustment | 9,394 | (5,175) |
| Operating cash flows before movement in working capital | 116,382 | 136,738 |
| Movement in working capital: | ||
| Decrease in trade and other receivables | 19,610 | 24,492 |
| Decrease/(Increase) in prepayments | 4 | (187) |
| (Decrease)/Increase in inventory | (6,057) | 7,702 |
| Increase in restricted cash | (2) | (470) |
| Decrease in trade, share-based payment and other payables | (15,376) | (23,667) |
| Decrease in contract liabilities | (942) | (1,481) |
| Cash generated by operating activities | 113,619 | 143,127 |
| Tax paid | (25,083) | (3,037) |
| Net cash flows from operating activities | 88,536 | 140,090 |
| Investing activities | ||
| Interest received | 5,816 | 4,838 |
| Dividend received | 2,708 | 98 |
| Purchase of property, plant and equipment | (31,074) | (33,477) |
| Proceeds from disposal of equipment | 30 | – |
| Purchase of financial assets | (29,339) | (1,781) |
| Proceeds from liquidation of financial asset | 2,963 | – |
| Investment in associate | (13,750) | – |
| Net cash used in investing activities | (62,646) | (30,322) |
| Financing activities | ||
| Dividend paid to parent | (59,745) | (26,357) |
| Dividend paid to NCI holders | (71) | – |
| Interest paid | (2,921) | (3,479) |
| Repayment of borrowing | (7,699) | (10,831) |
| Net cash flows used in financing activities | (70,436) | (40,667) |
| (Decrease)/Increase in cash and cash equivalents | (44,546) | 69,101 |
| Cash and cash equivalents – Beginning of year | 268,217 | 203,493 |
| Cash and cash equivalents – End of year | 223,671 | 272,594 |
Definition of ratios
Operating profit margin is the operating profit divided by total revenue. EBITDA margin corresponds to EBITDA divided by total revenue.
Profit before tax corresponds to EBIT minus net finance (cost)/income and plus share of profit of associates and joint venture using the equity method.
Glossary of terms
mmbbls – million barrels of oil
bscf – Billions of standard cubic feet of gas. boepd – Barrels of Oil Equivalent Per Day mscf – one thousand standard cubic feet boe – Barrel of oil equivalent
bbl/d – barrels per day
