Financial Energy Review
…..by Ben Ndubuwa…..
Aradel Holdings Plc has announced a significant boost in oil production for 2024, recording an output of 13,751 barrels per day, a 41% increase from the 9,739 barrels per day produced in 2023. The company disclosed this in its recently released Operational and Financial Performance Report for the year.
According to the report, gas production also saw an uptick, reaching 32.4 million standard cubic feet per day (5,717 barrels of oil equivalent per day), representing a 21.9% rise compared to 26.6 mmscfd (4,691 boepd) in 2023. Additionally, sales of refined petroleum products climbed to 240.5 million litres, up 14.5% from 210.1 million litres in the previous year.
Aradel Holdings reported an increase in the average realised crude oil price, which stood at $82.3 per barrel, compared to $80 per barrel in 2023. Meanwhile, the average realised gas price per thousand standard cubic feet was recorded at $1.7.
Chief Executive Officer of Aradel Holdings Plc, Adegbite Falade, highlighted that the company’s revenue surged by 162.8% to N581.2 billion. He attributed this remarkable growth to a sharp rise in export crude oil revenue, which constituted over 64% of total earnings. Falade noted that improved production levels, enhanced utilisation of the Trans Niger Pipeline, and additional value through the Alternative Crude Evacuation system contributed to this revenue boost.
The report also detailed the company’s strategic acquisitions, including the completion of the Olo and Olo West Marginal Fields purchase from the TotalEnergies/NNPC Joint Venture. Additionally, Aradel secured a 5.14% equity stake in Chappal Energies Mauritius Limited, an energy investment firm focused on upstream opportunities in Africa.
Falade further disclosed the successful acquisition of Shell Petroleum Development Company of Nigeria by Renaissance, describing it as a transformative deal that strengthens Aradel’s asset portfolio and long-term value creation.
“In line with our expansion strategy, we have completed Phase 1 of our four-well turnkey drilling campaign with promising results. The commencement of Phase 2 drilling with Well 16 signals continued progress in our development and production operations,” Falade stated.
He also emphasized the company’s commitment to operational efficiency, highlighting the expansion of throughput capacity to sustain strong production levels.
Aradel Holdings marked another milestone with its listing on the Nigerian Stock Exchange on October 14, 2024, a move expected to improve share liquidity and enhance long-term shareholder value.
The company acknowledged that foreign exchange fluctuations impacted its financial performance. The average exchange rate rose from N645.92 per dollar in 2023 to N1,479.68 in 2024, reflecting economic shifts that influenced business operations.
Aradel Holdings Plc continues to demonstrate strong growth and strategic expansion, positioning itself as a key player in Nigeria’s energy sector.
