April 28, 2025/InvestmentOne Report

Aradel Holdings Plc delivered impressive Q1:2025 financial results, demonstrating robust earnings momentum backed by strategic operational expansions and effective cost management despite external operational headwinds. Revenue surged by 97.60% YoY to NGN199.87bn compared to NGN101.16bn recorded in Q1:2024, reflecting substantial increases across its upstream and downstream segments. Profit after tax (PAT) grew strongly by 55.34% YoY, climbing to NGN34.20bn from NGN22.02bn reported in the corresponding period of the previous year. Consequently, earnings per share (EPS) appreciated to NGN7.77, representing a robust growth of 52.35% from NGN5.10 in Q1:2024. 

Aradel s management has indicated an improved operational outlook, expecting gas production normalisation and sustained crude production growth through pipeline enhancements, operational reliability initiatives, and ongoing asset integration processes. Furthermore, the successful resolution of pipeline disruptions and continued throughput optimisation efforts position the Group positively for enhanced revenue diversification and profitability in subsequent quarters.

However, potential downside risks remain, notably around global oil price volatility, domestic regulatory uncertainties, and operational disruptions inherent in Nigeria s oil and gas landscape. Vigilant management of these risks remains imperative for sustaining current growth momentum. Consequently, we place an OVERWIGHT recommendation on ARADEL.

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