Two weeks after it rebranded, Aradel Plc has demonstrated it has begun a new phase of growth and exceptional performance in its 18 years of operations as it promised at the unveiling of the new corporate identity.

Aradel achieved exceptional growth across top and bottom-line growth metrics in its half-year (H1) financials, raising its operating profit by 478.7 per cent year-on-year (Y/Y), from N5.2 billion to N29.8 billion. Its operating profit margin also shot up by 180 basis points (bps), from 22 per cent to 40 per cent.

Its profit before tax also grew by 269.5 per cent, rising from N7.5 billion to N27.9 billion while profit after tax (PAT) almost tripled as it rose from N4.8 billion to N13.1 billion.

As tough as the year is for companies listed on the stock exchange with some operations making huge provisions for foreign exchange (FX) losses, the company’s earnings before interest, taxes, depreciation and amortization (IBITDA) moved from 12.4 per cent to 40.4 per cent.

Last year, the company recorded great topline growth but the H1’s operations were not dampened by last year’s elevated base effect. Topline performance remained robust with revenue growing by 217.6 per cent to hit N74.5 billion compared to H1 2022 when it recorded N23.5 billion.

Total assets also improved remarkably. Jumping by 73.7 per cent to N882.1 billion while total equity followed a similar speed of growth, from N326.8 billion to N583.3 billion.

The performance was driven by improved operations and the bullish oil market in the period, according to filing at the stock exchange. The company disclosed that it completed Well 12 and 13, helping it to ramp up production.

It recorded crude production of 8,544 barrels of crude oil (bbl) per day, which was a 97.5 per cent increase of 4,327 bbl/day recorded in the comparative period.

The average realised price/bbl from crude oil operations (refining plus crude export) was $100.8bbl, the company said. Its gas production also improved by 6.6 per cent just as it sold refined products of 57 mm litres, an increase of 19.6 per cent.

It recorded an average realised oil price per barrel of $74.6 while the average realised gas price per mscf was $2.1, up by 16.7 per cent year-on-year.

Speaking on the performance, Chief Executive Officer, Adegbite Falade, said: “Aradel Holdings consolidated on the gains arising from the initiatives it embarked on in the second half of 2022. Revenues, operating profit, EBITDA, PAT and free cash flows increased significantly over the prior period, mainly because the company has begun to benefit from executing the plans crafted to ensure optimum production and refining.

“The Alternative Crude Oil Evacuation (ACE) project was a significant value driver for our operations in the first half of the year: after a slow start in Q1, 2023 (lifting ~100kbbls), the Company was able to transport 400kbbls through the ACE in H1, 2023, as we sought approaches that ensured that production was not significantly curtailed during the period. These initiatives also resulted in the increased refining capacity of 35 per cent, the improved outcome mainly due to the debottlenecking exercises completed in Q4, 2022.

“We completed the drilling of Well-12 and Well-13, both with promising results, and expect to spud Well-14 in Q3, 2023. The completed wells are poised to add to our crude oil and gas production, underscoring our standing promise to increase value creation for our shareholders.”

Falade said the positive outcomes would lead to increased value for the company, its shareholders and the country as “we believe that they will hold (and be improved upon) till the end of the financial year”.