Aradel Holdings reported an almost five-time surge in net profit for last year compared to 2023, with the strikingly strong result deriving strength from increased crude oil sales to overseas buyers.
Exported crude became the dominant revenue earner for the integrated energy company during the period, contributing more than three-fifths of turnover.
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That compares to the preceding year, when it accounted for less than 50 per cent, while domestic sales took the lion’s share.
Revenue for Aradel quickened by 162.7 per cent to N581 billion, according to its unaudited accounts issued on Tuesday, its first full-year financials since it went public last year.
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Strengthening turnover, other income stood at N31.7 billion compared to a loss of N7.9 billion a year earlier.
Aradel’s share of profit of an associate company, ND Western, climbed to N31.2 billion from N3.2 billion a year earlier.
The two were part of a group of investors called Renaissance, also comprising First Exploration & Production, Waltersmith and Petrolin, which got approval in December to acquire Shell’s $2.4 billion onshore assets.
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Profit before tax was up 186.7 per cent at N321.6 billion, while after-tax profit leapt to N247.8 billion from N53. 7 billion.
READ ALSO: Aradel’s annual profit jumps almost fivefold amid mega boost to crude oil exports
Aradel, which runs a regional office in South Sudan and three locations in Nigeria, saw its foreign currency translation gain surge by more than half to N314.5 billion. That happened after converting earnings from its foreign operations into naira, its reporting currency, which fell by more than 71 per cent against the dollar during the year under review.
Overall, total comprehensive income for the year advanced to N760.1 billion from N392 billion.
The company dumped Lagos-based over-the-counter securities exchange NASD but faced a stormy start after listing its shares on the Nigerian Exchange last October, with its market value plunging 54.5 per cent barely two weeks after it was admitted to the bourse.
Total assets currently stand at N1.7 trillion, up from N923 billion.
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