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.
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”.
Meanwhile, Mr. Falada, has announced, the company’s modular refinery will start operations soon, describing local refining of crude into petroleum products as very essential for Nigeria.
Speaking in Lagos on Friday during the rebranding of Niger Delta Exploration and Production Plc (NDEP) to Aradel Holdings, Falade stated that, it will encourage import substitution which will reduce pressure on the nation’s foreign exchange, adding that, it will also create jobs in the country.
He said the grand unveiling and public launch of the company is strategic as the company will continue to make more giant strides, adding that, “the primary benefit of local refining is not price because you are still going to buy the crude at international oil prices.”
“The biggest value that local refining does is that it provides employment for Nigerians, it helps us with import substitution and so because you are not committing your scarce forex to import fuel, you are able to conserve your forex and it eases the pressure on the naira.
“Those benefits outweigh the issue of pricing. We will price in cost reflective in some instances, it means we are selling for less than it would have sold for if it were imported.
