Newly-listed Aradel Holdings reports 477% jump in nine-month profit

Revenue for the review period more than tripled to N377.6 billion.

Nigerian Exchange’s newest member Aradel Holdings, which was admitted to the bourse’s elite listing segment (Main Board) only this month, reported N110.6 billion in net profit for the first nine months of the year, 477 per cent higher than the same period of last year.

The oil driller recorded notable improvements across all its revenue streams, with crude oil sales which singly contributed 66.6 per cent of turnover, accelerating to N251.7 billion from N55.9 billion.

Aradel expanded the income generated from markets outside Nigeria within the period so much that those markets now account for the bulk of revenue unlike before when income generated within Nigeria provided the larger part.

Sales outside Nigeria contributed 73.9 per cent (N279 billion) of revenue, nearly five times the value of the sales generated within Nigeria, according to the earnings report of the integrated energy company issued on Wednesday.

The remarkable earnings performance stands clearly in contrast to the performance of the stock, which got off to a rocky start after it was admitted to the Nigerian Exchange sixteen days ago at a market capitalisation of N3.4 trillion.

That valuation has since shrunk by N2.2 trillion, with the stock shedding 10.8 per cent or N239 billion on Wednesday as the strong financial performance surprisingly failed to wow investors.

Revenue for the review period more than tripled to N377.6 billion.

Aradel’s share of profit in ND Western, its associate company, advanced to N23.6 billion from N3.2 billion a year ago.

Aradel and ND Western are among the suitors, commonly called the Renaissance consortium lining up to acquire Shell’s Nigeria onshore operation valued at $1.3 billion.

Pre-tax profit rose to N191.5 billion from N37.4 billion a year ago.

Total comprehensive income, which accounted for foreign currency translation difference and share of other comprehensive income of associate accounted for using the equity method, leapt 163.2 per cent to N686.7 billion.

Total assets rose to N1.7 trillion from N923.4 billion during the period.