According to Aradel’s unaudited financial results for Q1 2025, cash flow from operations declined to ₦30.6 billion, compared to ₦55.8 billion in the corresponding period of 2024. The decline was attributed largely to the non-receipt of proceeds from crude and gas sales worth ₦70.3 billion—expected in Q2—as well as the $20 million allocation for the Chappal acquisition.
The company announced in December that it had entered an agreement to acquire a 5.14 per cent equity interest in Chappal Energies, a firm focused on deep value and brownfield upstream opportunities across Africa. Aradel’s Managing Director and CEO, Adegbite Falade, explained that the move aligns with the company’s strategy to diversify its asset portfolio, bolster its gas operations, and explore offshore opportunities with lower risk profiles.
“We recognise the strategic role of gas in Nigeria’s energy future and are happy to expand our equity holding in this critical resource,” Falade said. He added that the company is committed to unlocking the inherent value in Chappal’s assets for national benefit.
Chappal Energies recently acquired Equinor Nigeria Energy Company, giving it control of a 53.85 per cent stake in oil and gas lease OML 128, which includes a unitised 20.21 per cent interest in the Chevron-operated Agbami oil field.
Aradel’s Q1 report also highlighted a sharp increase in investment-related cash outflows, which surged by 341.5 per cent year-on-year to ₦72.5 billion. The rise was linked to its ₦20.9 billion investment in Renaissance Africa Energy Holdings, ₦26.7 billion in financial asset acquisitions, and ₦29.1 billion in capital expenditures.
Financing activities also saw a modest increase in outflows, reaching ₦9.62 billion—up 13 per cent from ₦8.5 billion in Q1 2024. The company noted that a ₦50.1 billion debt financing arrangement for the Shell Petroleum Development Company (SPDC) acquisition was classified as a non-cash transaction, executed through ND Western Limited, its associate.
Despite the strain on operating cash flows, Aradel reported a 4.7 per cent growth in total assets to ₦1.8 trillion, driven by the completion of the SPDC acquisition by the Renaissance consortium—of which Aradel holds a 33.3 per cent equity interest. ND Western’s asset base also grew slightly to ₦495.2 billion, contributing to the company’s strengthened balance sheet.
Total liabilities rose by 13.2 per cent to ₦391.3 billion, influenced by increased tax liabilities and additional debt related to the SPDC transaction. Equity rose by 2.6 per cent to ₦1.44 trillion, buoyed by retained earnings from total comprehensive income.
Commenting on the Q1 performance, Falade noted that the results reflect Aradel’s intention to build on its 2024 momentum. “The increase in crude production and revenues resulted from new well activity and extended testing at the Omerelu Field,” he said, expressing optimism for improved performance in Q2.
Aradel also declared a combined dividend payout of ₦30 per share for the 2024 financial year—a 200 per cent increase over the ₦10 per share paid in 2023—comprising an interim dividend of ₦8 and a final dividend of ₦22 per share.
In terms of profitability, the company posted a significant uptick in both revenue and profit after tax. Revenue nearly doubled year-on-year to ₦199.9 billion, while profit after tax rose by 55.3 per cent to ₦34.2 billion.