Economy
Aradel Revenue Jumps 238.8% to N123bn, PAT Rises 170% to N19.2bn
By Adedapo Adesanya
Aradel Holdings Plc witnessed a 238.8 per cent revenue increase in the first nine months of 2023 ended on September 30 to N123.0 billion from N36.3 million in the same period of 2022.
The growth was driven by its crude oil revenue, which accounted for 45.5 per cent of total revenue as it increased to N55.9 billion, comparatively there were no crude sales for the corresponding period in 2022.
According to the financial statement seen by Business Post, the improvement was attributed to the improved utilisation of the Trans Niger Pipeline (TNP), an impact from reduced crude theft losses through the TNP in addition to the value captured through the Alternative Crude Evacuation (ACE) channel.
Gas revenue recorded a 67.8 per cent increase, amounting to N6.3 billion representing 5.1 per cent of total revenue. This reflected an increase in production volumes in contrast to N3.7 billion in 2022 which then accounted for 10.3 per cent of total revenue.
There was an 86.7 per cent increase in refined products (49.4 per cent of the total) to N60.8 billion versus N32.6 billion or 89.7 per cent of total revenue in the preceding period due to increased sales volumes of 126.2 mmlitres up by 66.7 per cent (9M 2022: 75.7 mmlitres).
The energy company saw its gross profit increase by 213.4 per cent to N70.3 billion from 22.4 billion which resulted in an operating profit of N40.2 billion against last year’s N15.9 billion. There was a decline of 19.5 per cent in other income to N0.3 billion versus N0.4 billion due to exchange losses recorded from the fluctuation in the country’s FX rate.
Aradel recorded a Profit Before Tax (PBT) of N37.4 billion, up 117.4 per cent year-on-year from N17.2 billion. Income tax expense estimate of N18.2 billion (cash tax of n6.6 billion and deferred tax of N11.6 billion), while the Profit After Tax (PAT) increased by 170.1 per cent to N19.2 billion from the N7.1 billion published in 9M 2022.
In terms of its operations, crude oil production rose 148.1 per cent from 3,584 barrels per day to 8,893 barrels per day.
For gas production, it increased by 25.1 per cent to 22.4 million standard cubic feet per day (or 3,949 barrels of oil equivalent per day) compared to 17.8 Mmillion standard cubic feet per day(3,157 barrels of oil equivalent per day) while refined petroleum products sold 126.2 mmlitres, up 66.7 per cent year-on-year from 75.7 mmlitres).
Speaking on the result, the Chief Executive Officer/Managing Director, Mr Adegbite Falade, said, “The first nine months of 2023 have been a period of significant progress and growth for our company, despite the challenging macro-economic environment. We commenced production in two new wells (Well-12 and Well-13) during the period, which has significantly boosted our crude oil and gas production.
“This, coupled with an increase in refined product output, has led to a year-on-year increase in our overall production volumes.”
On the challenges, he pointed out that, “We also experienced exchange losses due to foreign exchange volatility and a formal devaluation of the Naira, symptomatic of the general business environment. These have, however, been offset by our increased operational performance and strong revenue growth.
“I am delighted to report that our profit after tax increased by 170.1 per cent during the period. This significant increase in profitability, despite the higher depreciation and exchange losses, demonstrates the underlying strength of our operations and the success of our growth strategy.”
“We remain committed to delivering value to our stakeholders and are confident in our ability to continue to grow and succeed in the future,” he added.
By Aduragbemi Omiyale
Secure Electronic Technology (SET) Plc is planning to reconstruct its shares at the Nigerian Exchange (NGX) Limited by merging four stocks into one.
However, this exercise is subject to the approval of shareholders of the company and the board is proposing an Extraordinary General Meeting (EGM) to be held on or before April 17, 2025.
Business Post reports that the decision to reconstruct the shares of the organisation was reached at the board meeting of the firm on Friday, MArch 7, 2025.
In a notice to the stock exchange, SET Plc said it was agreed that the proposed share reconstruction and recapitalisation of the company shall be by way of one or a combination of the following; an offer for subscription, rights offering or private placement, upon terms agreed by both parties under the definitive agreement.
It further said, “The issued and share capital of the company be reduced from N2,815,770,000, represented by 1,407,885,000 ordinary shares of 50 Kobo each, subject to the approval of the Federal High Court, Securities and Exchange Commission (SEC), and relevant regulatory authorities.”
“This restructuring share result in the cancellation of 4,223,655,000 units of shares and the portion of the share capital cancelled, being valued at N2,111,827,500 be transferred to a special reconstruction reserve,” it noted.
The disclosure also said, “There shall be a proportional upward adjustment in the share price of SET on the NGX to be reflected after the conversion, so that the value of one converted share shall be equal to the market price of four pre-reconstruction shares, and at the end of the reconstruction, SET market capitalisation and each shareholder’s percentage holding shall remain unchanged.”
The company emphasised that it would “consolidate its issued shares at a basis of 1 for 4 ratio, meaning every four shares of SET Plc currently held by a shareholder shall be converted to one share and shareholdings that result in fractional shares post-reconstruction shall be rounded up to the nearest whole number.”
It was disclosed that this exercise was suggested by Gamma Civic Limited, a part of Gamma Group, a company listed on the Mauritius Stock Exchange and represented by Cruzan Investment Limited, a company incorporated in Nigerian under the Companies and Allied Matters Act 2020.
By Adedapo Adesanya
FrieslandCampina Wamco Nigeria Plc brought down the NASD Over-the-Counter (OTC) Securities Exchange by 0.06 per cent on Wednesday, March 12.
Business Post reports that the share price of FrieslandCampina Wamco Nigeria Plc slumped by N1.26 during the session to N37.45 per unit from the preceding day’s N38.71 per unit.
However, Geo-Fluids Plc gained 27 Kobo to trade at N2.95 per share versus Tuesday’s closing price of N2.68 per unit, and First Trust Microfinance Bank Plc appreciated by 3 Kobo to close at 56 Kobo per share, in contrast to the previous day’s rate of 53 Kobo per share.
When the platform ended trading activities yesterday, its value went down by N1.17 billion to settle at N1.955 trillion compared with the preceding day’s N1.956 trillion and the NASD Unlisted Security Index (NSI) decreased by 2.03 points to close at 3,385.50 points, in contrast to the previous trading day’s 3,387.53 points.
The volume of securities traded at the bourse dropped by 36.3 per cent to 298,845 units from the 469,185 units published on Tuesday, the value of securities decreased by 4.8 per cent to N10.4 million from the N10.9 million quoted at the preceding session, and the number number of deals moderated by 34.2 per cent to 25 deals from 38 deals.
At the close of business, Impresit Bakolori Plc was the most active stock by value (year-to-date) with 533.9 million units worth N520.9 million, followed by FrieslandCampina Wamco Nigeria Plc with 12.5 million units valued at N484.0 million, and Afriland Properties Plc with 17.2 million units sold for N352.8 million.
Also, Impresit Bakolori Plc was the most active stock by volume (year-to-date) with 533.9 million units worth N520.9 million, trailed by Industrial and General Insurance (IGI) Plc with 69.9 million units sold for N23.7 million, and Afriland Properties Plc with 17.2 million units valued at N352.8 million.
By Aduragbemi Omiyale
The House of Representatives has passed Nigeria Insurance Industry Reform Act, 2024, repealing Act, Cap 117, Laws of the Federation of Nigeria, 2004; the Marine Insurance Act, Cap M3, Laws of the Federation of Nigeria, 2004; The Motor Vehicle (Third Party) Insurance Act, Cap M22, Laws of the Federation of Nigeria, 2004; the National Insurance Corporation of Nigeria Act, Laws of the Federation of Nigeria, 2004 and the Nigerian Insurance Reinsurance Corporation Act, Cap N131, Laws of the Federation of Nigeria, 2004.
At the plenary on Wednesday, the green chamber of the National Assembly approved some conditions the operating licence of an insurance company can be revoked by the National Insurance Commission (NAICOM).
The new piece of legislature, which provides for a comprehensive legal and regulatory framework for insurance business in Nigeria, was enacted yesterday after the consideration of the Senate bill.
During the presentation by House Leader, Mr Julius Ihonvbere, yesterday, for a clause-by-clause consideration, it was agreed that NAICOM can withdraw the licence of an insurer or reinsurer if it is not conducting insurance business in accordance with sound insurance principles.
In addition, this action can be carried out if the licence holder has “failed to satisfy the capital or solvency requirement as prescribed by the commission and has ceased to carry on the business of insurance and the primary purpose for which it was registered for at least one year in Nigeria.”
The lower chamber of the parliament also concurred with the Senate that for obtaining an operating licence, “An application for licensing as an insurer shall be made to the commission in the prescribed form and accompanied by such other documents or information as the commission may from time to time require.
“The commission shall publish and make available to the general public a service charter which shall provide for products and services of the commission and the complete list of requirements to obtain the products and services.”
However, no person or organisation is allowed to “commence or carry out insurance, reinsurance or related business in Nigeria unless licensed by the commission as an insurer or a reinsurer under this bill.”
NAICOM was given the power to “regulate the insurance industry [in Nigeria] in order to develop the insurance sector and to protect the interest of policyholders, prospective policyholders and other stakeholders under insurance policies in ways that are consistent with the continued development of a viable, competitive and innovative insurance industry.”
-
Feature/OPED5 years agoDavos was Different this year
-
Travel/Tourism9 years ago
Lagos Seals Western Lodge Hotel In Ikorodu
-
Showbiz2 years agoEstranged Lover Releases Videos of Empress Njamah Bathing
-
Banking7 years agoSort Codes of GTBank Branches in Nigeria
-
Economy2 years agoSubsidy Removal: CNG at N130 Per Litre Cheaper Than Petrol—IPMAN
-
Banking2 years agoFirst Bank Announces Planned Downtime
-
Sports2 years agoHighest Paid Nigerian Footballer – How Much Do Nigerian Footballers Earn
-
Technology4 years agoHow To Link Your MTN, Airtel, Glo, 9mobile Lines to NIN