Aradel Holdings Plc, a Nigerian-owned integrated energy company, has allocated $20 million in restricted cash for the acquisition of Chappal Energies, a move that signals its continued push to strengthen its footprint in the domestic energy landscape.
The funding commitment was disclosed alongside the company’s unaudited financial results for the first quarter of 2025, which reported a 97.6 percent jump in revenue to N199.9 billion, compared to the same period in 2024. Profit after tax also rose by 55.3 percent to N34.2 billion, reflecting improved operational performance.
According to Aradel’s cash flow statement, the $20 million in restricted funds is part of the preparatory steps for the Chappal Energies transaction, which is expected to significantly expand the company’s asset base and production potential within Nigeria’s energy market.
Operating profit for the Group climbed to N63.6 billion, representing a 79.1 percent increase year-on-year. This growth was propelled by higher crude oil output, enhanced throughput via the Trans Niger Pipeline (TNP), and effective use of the Alternative Crude Evacuation (ACE) system.
Crude oil sales reached 1.2 million barrels in Q1 2025, a dramatic rise from 0.39 million barrels in the same period last year, and made up 71.1 percent of overall revenue.
Commenting on the performance, Aradel’s Chief Executive Officer, Adegbite Falade, said, “Our first-quarter results demonstrate the momentum we carried over from 2024. We saw gains from new well completions and the extended well test at Omerelu. While gas output faced temporary setbacks due to pipeline issues, those have now been resolved. We are confident in achieving even stronger results in the second quarter.”
Despite the robust revenue performance, gas earnings declined by 35.5 percent to N4.4 billion, primarily due to a 48.7 percent reduction in gas production caused by the earlier pipeline disruptions. On the refining side, Aradel reported a year-on-year increase of 26 percent in the volume of petroleum products sold, amounting to 75.5 million litres.
However, rising costs posed a challenge. The cost of sales surged by 214.3 percent to N121 billion. This was attributed largely to higher royalty payments, crude handling charges, and depreciation costs.
In addition, general and administrative expenses rose sharply by 149.2 percent to N15.9 billion, driven by increased staff costs linked to a new share-based incentive scheme and a rise in technology-related subscriptions.
