2024 crude oil production: Aradel Holdings Plc reports 36% increase for Q1

Aradel Holdings Plc has announced a remarkable 36% increase in crude oil production, reaching 13,250 barrels per day in the first quarter of 2024.

This growth was revealed at the company’s 29th Annual General Meeting held in Lagos.

The indigenous energy firm also reported a 36% rise in gas production, achieving 36.8 million standard cubic feet per day, as compared to the average numbers for 2023. However, refined petroleum products saw a slight decline of 1.6%, producing 722,000 litres per day.

In a statement provided to The PUNCH, Aradel highlighted a significant financial upturn, with Q1 2024 revenues up by 90% and Profit Before Tax increasing by 62%, both measured in Functional USD.

Aradel Holdings’ Chairman, Ladi Jadesimi, commented on the company’s exceptional performance in 2023, attributing it to strategic initiatives from the previous year. “We increased our overall crude production volumes and enhanced our well delivery performance. The Alternative Crude Evacuation system completed in 2022 was further optimized, significantly reducing crude loss,” Jadesimi said.

The company recorded a 234.5% revenue growth in 2023, reaching N221.1bn ($342.3m), up from N66.1bn ($156.1m) in 2022. Profit After Tax soared by 254.9%, from N15.1bn ($35.5m) in 2022 to N53.7bn ($69.1m) in 2023. As a result of this financial performance, shareholders approved a final dividend of N170 per share at the AGM.

Aradel’s CEO/Managing Director, Adegbite Falade, praised the dedication and strategic foresight of the company’s Board and workforce for the operational successes of 2023.

“The relentless pursuit of multiple initiatives enabled the outstanding growth seen in 2023,” Falade noted.

Looking ahead, Falade emphasized the company’s continued progress as demonstrated in their Q1 2024 unaudited accounts. “Our crude oil production increased by 36% from the FY2023 average, gas production also rose by 36%, although refined petroleum products slightly decreased by 1.6%,” he stated.

Falade also disclosed that Aradel joined the elite ranks of Nigerian companies with a market capitalization of N1 trillion on May 29, closing at N4,882 per share at the end of the trading day.