Aradel Holdings Delivers Stellar 97.6% Revenue Growth in Q1 2025 Amid Strategic Expansion
Aradel Holdings Plc, a leading indigenous energy group, kicked off 2025 with an impressive financial performance, posting a 97.6% surge in revenue for the first quarter ended March 31, 2025. The company’s topline soared from ₦101.1 billion recorded in the same period last year to ₦199.9 billion — a near doubling that underscores Aradel’s aggressive growth trajectory and operational resilience.
The results, contained in a corporate disclosure filed with the Nigerian Exchange Limited (NGX) on Monday, also revealed a robust expansion in profitability metrics. Profit after tax climbed 55.5% to ₦34.2 billion from ₦22.0 billion in Q1 2024, signaling not only higher revenues but also efficient cost and asset management in a volatile economic environment.
Aradel’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) rose 66.2% year-on-year to ₦87.1 billion, up from ₦52.4 billion. Operating profit similarly posted a strong 79.1% increase, reaching ₦63.6 billion compared to ₦35.5 billion a year earlier — a performance attributed to higher production volumes, improved field operations, and prudent financial controls.
Strategic Drivers Behind the Numbers
The company’s CEO, Mr. Adegbite Falade, attributed the stellar performance primarily to increased crude production. Key contributors included additional output from new wells and the ongoing Extended Well Test (EWT) at the Omerelu field, a strategic asset that has become increasingly central to Aradel’s growth story.
Notably, Aradel also benefitted from a relatively stable foreign exchange environment compared to 2024, with a slower pace of naira devaluation leading to reduced exchange losses — a critical factor given the industry’s sensitivity to FX fluctuations.
However, it was not all smooth sailing. The company faced operational challenges, particularly disruptions in gas pipeline infrastructure, which affected both gas and liquids production during the quarter. Falade assured that these issues were resolved by period-end, and that proactive measures were now in place to minimize future risks.
“Our Q1 2025 performance reflects our focus on building sustainable momentum. We expect further improvements in Q2 as we optimise throughput capacities across our evacuation lines and enhance overall field performance,” Falade stated.
Debt, Finance Costs, and Growth Ambitions
Aradel’s balance sheet showed signs of strategic leveraging, with finance costs rising 62.7% year-on-year to ₦5.4 billion, up from ₦3.3 billion. This uptick was largely driven by borrowings linked to the acquisition of Shell Petroleum Development Company’s (SPDC) divested assets — a bold move that signals Aradel’s ambition to deepen its upstream footprint.
On the upside, finance income also rose by 28% to ₦4.9 billion, supported by higher returns on cash and cash equivalents. This signals effective treasury management amidst expansion-related financial commitments.
Broader Industry and Economic Context
Aradel’s strong start to 2025 aligns with broader optimism in Nigeria’s energy sector following key policy shifts under the ongoing energy reforms. As indigenous players like Aradel continue to consolidate production and optimize assets acquired from international oil companies (IOCs), the competitive landscape is tilting in favour of agile, well-capitalized local operators.
However, rising operating costs, infrastructure bottlenecks, and an unpredictable foreign exchange regime remain critical risks that firms must navigate carefully.
For Aradel, the first quarter results send a strong signal to investors and industry stakeholders: the company is not only expanding aggressively but doing so with operational discipline and strategic foresight.
With its strengthened production base, improving gas infrastructure, and expanding revenue streams, Aradel appears poised for a solid full-year performance — assuming it continues to navigate Nigeria’s complex energy and financial terrain effectively.
