By Adedapo Adesanya
Aradel Holdings Plc has promised its shareholders higher dividends as it quelled worries about interim dividend payments in the Nigerian equity market.
The payment of interim dividends has continued to rise among firms in the Nigerian capital market in recent times as it gives investors a portion of profits before the final dividend.
For instance, Zenith Bank paid N1 interim dividend for H1 2024, while UBA surprised the market with a half-year cash reward of N2 to shareholders.
The listing by introduction of Aradel Holdings Plc on the Nigerian Exchange Limited (NGX) yesterday sparked another round of curiosity with shareholders asking if the company would pay interim dividends this year.
Commenting on this at the company’s Facts Behind the Listing on Monday, the chief executive of Aradel, Mr Adegbite Falade, said that the firm was likely to do that since it paid N30 for the same period last year, promising to also offer a robust final dividend at the end of the 2024 year.
He anchored this promise on the company’s financial position, adding that the organisation is performing well and expects strong profits for the entire year.
“On dividend, we have a board-approved policy that was carefully curated to use a number of metrics that will automatically trump the numbers and the result is that we then moved from a full-year dividend payment of N35 against the financial year of 2022; as a consequence of that policy, it translated to an interim dividend of N30 for 2023 and a final dividend payment of N170, making it a full year N200 for the N10 share power we had prior.
“By reason of that policy, in 2024 there will be in both underlined and in caps dividend payments whose number will be determined as an outcome of the algorithm in place and there’s also going to be a final dividend that will be then be paid when the full year audited account.”
Speaking earlier, the Chairman of Aradel Holdings, Mr Ladi Jadesimi, highlighted the company’s focus on innovation and sustainability, noting that Aradel was poised to expand its footprint in the renewables space while maintaining its leadership in the oil and gas sector.
“The listing of Aradel Holdings on NGX represents a pivotal moment for us,” Mr Jadesimi said.
“We are committed to driving sustainable growth in Nigeria’s energy industry, particularly in the renewables space, while continuing to excel in petroleum product exploration and refining.
“This listing provides us with the platform to unlock further value for our shareholders,” he added.
