The company’s total revenue surged to N199.8 billion, nearly doubling from N101.1 billion in the same period last year—a 97.57% increase. Crude oil sales led the revenue stream with N142.1 billion, followed by N53.3 billion from refined products and N4.4 billion from gas.
Geographically, Aradel maintained a strong export focus, with international sales contributing N142.1 billion, while domestic revenue totaled N57.7 billion. This reflects continued strength in foreign market demand and favorable global oil pricing.
Despite this impressive top-line growth, the company experienced a sharp rise in its cost of sales, which ballooned by 214.26% to N120.9 billion, up from N38.5 billion in Q1 2024. Nevertheless, gross profit still improved by 25.88% year-on-year, reaching N78.8 billion.
Aradel also faced rising administrative expenses, which jumped 149.21% to N15.9 billion, reflecting higher operating costs in the current economic environment. Even so, the group maintained strong profitability, with operating profit climbing to N63.5 billion, a 79.14% increase from the prior year.
In terms of financing, finance income grew moderately to N4.1 billion from N3.2 billion, while finance costs also rose to N5.4 billion, up 62.67% year-on-year. This suggests increased reliance on debt financing or higher borrowing costs.
On the balance sheet, Aradel Holdings reported total assets of N1.8 trillion, marking a 4.72% year-on-year increase. Retained earnings also advanced to N428.9 billion, an 8.54% growth that reflects reinvested profits and balance sheet resilience.
Key Financial Highlights (Q1 2025 vs. Q1 2024):
- Revenue: N199.8 billion (+97.57%)
- Cost of Sales: N120.9 billion (+214.26%)
- Gross Profit: N78.8 billion (+25.88%)
- Admin Expenses: N15.9 billion (+149.21%)
- Operating Profit: N63.5 billion (+79.14%)
- Pre-tax Profit: N67.1 billion (+70.08%)
- Total Assets: N1.8 trillion (+4.72%)
- Retained Earnings: N428.9 billion (+8.54%)
However, despite the positive financial results, Aradel’s share price closed at N448 on April 28, 2025, reflecting a year-to-date decline of 25.08% in the Nigerian stock market. This suggests that investor sentiment may be cautious, possibly due to rising costs or broader market dynamics.
As Aradel continues to expand its upstream and downstream operations, stakeholders will closely watch how the company manages cost pressures while sustaining revenue growth in a volatile global energy market.