Aradel reports N321.6 billion pre-tax profits, up 187% YoY

The unaudited Group financial statements, reviewed by Naijaonpoint, show that the company’s revenue surged by 162.74% to N581.022 billion, up from N221.142 billion in 2023.

The significant revenue increase was primarily driven by:

Commenting on the results, Aradel’s CEO, Mr. Adegbite Falade, highlighted the company’s operational and financial strides:

“The Company sustained its strong operational and financial performance in 2024, building on the improvements achieved in 2023. We recorded increased topline and bottom line, driven by significantly higher hydrocarbon production, the successful re-entry of Well 2ST in the Omerelu Field, which resulted in the attainment of First Oil on 31st May 2024, and increased sales volumes from our refinery operations.” 

Aradel delivered strong profitability metrics, with a 361.10% increase in net profit and a 361.03% surge in EPS. The company attributed its surge in profitability to:

Aradel’s free cash flow (FCF) grew by 98% YoY to N178.5 billion, signaling a strong internal funding position.

This provides the company with ample financial flexibility for growth investments, refinery expansion, and acquisitions without heavy reliance on external borrowing.

Despite revenue growth, Aradel experienced a drop in gross and operating profit margins, reflecting rising costs:

Aradel’s balance sheet remains robust, with:

Aradel’s strong asset base, growing equity, and controlled liability increase suggest financial stability and ability to sustain long-term profitability and expansion.

Aradel’s landmark year in 2024 was capped by its successful listing on the NGX in October.

CEO Adegbite Falade described the listing as a “significant milestone towards fulfilling our promise to enhance shareholder value.”

However, sentiment improved in early 2025, reducing the YtD loss to 9.7% as of January 28, 2025.

Looking ahead to 2025, Aradel plans to commence the development programs for Olo and Olo West as well as the Omerelu Fields.

While margin pressures remain a factor, the firm’s ability to maintain strong earnings growth and reinvest in key projects could drive long-term shareholder value.

While margin pressures remain a factor, the firm’s ability to maintain strong earnings growth and reinvest in key projects could drive long-term shareholder value.