Aradel Holdings Plc · NSENG:ARADEL
Aradel — Q1 2025 Earnings Presentation
48 slides from Aradel's earnings presentation, May 27, 2025
Slide 1: FY24 & 1Q25 Results Presentation
FY24 & 1Q25 RESULTS PRESENTATION 27 May 2025
Slide 2: Disclaimer: Forward-Looking Statements
DISCLAIMER Forward-Looking Statements Certain statements in this presentation may constitute forward-looking information or forward-looking statements under applicable Nigerian Securities laws (collectively “forward-looking statements”). Forward-looking statements are statements that relate to futur
Slide 3: Presenters
PRESENTERS Adegbite Falade Adegbola Adesina Managing Director/CEO Chief Financial Officer 3
Slide 4: Introduction
aradel @\ Holdings 01 INTRODUCTION
Slide 5: Aradel Holdings at a Glance
ARADEL HOLDINGS AT A GLANCE 10 OIL AND GAS ASSETS / NIGERIA’S FIRST FULLY OVER 19 YEARS OF SUCESSFUL BUSINESSES ACROSS NIGERIA INTEGRATED INDIGENOUS AND UNINTERRUPTED THAT DELIVER CONSISTENT ENERGY COMPANY PRODUCTION OPERATIONS VALUE AND RETURNS 78% AND 75% CAGR IN REVENUE 2P RESERVES 337.8 MMBOE AS
Slide 6: Aradel Holdings' Achievements So Far
ARADEL HOLDINGS’ ACHIEVEMENTS SO FAR THE JOURNEY OF BECOMING NIGERIA’S FULLY INTEGRATED INDIGENOUS ENERGY COMPANY ▪ Incorporation ▪ Negotiated the first farm ▪ Commissioned a ▪ Executed an ▪ Delivered the 50th Bscf ▪ Name change to Aradel ▪ Acquired 33.3% (12.5% as Midas out agreement with 1,000bbls
Slide 7: Financial and Operational Highlights
FINANCIAL AND OPERATIONAL HIGHLIGHTS UNDERLYING OPERATIONAL AND FISCAL PERFORMANCE REMAINED RESILIENT IN FY 2024 AND Q1 2025 Key Operating Metrics – Oil and Gas Production Key Operating Metrics - Refinery FY 2024 Q1 2025 Mm litres FY 2024 Q1 2025 Oil Gas BoE Oil Gas BoE Automotive Gas Oil 50.9 18.0
Slide 8: Strong Business Development Momentum
STRONG BUSINESS DEVELOPMENT MOMENTUM PURPOSE-BUILT INDEPENDENT BUSINESS STRUCTURE WITH ESTABLISHED PARTNERSHIPS Oil Gas Refining Across 10 assets/business1 100% 42% OML 34 100% 12.5%2 20.8% 95% 6%3 100% 49% >19 years 20,000 bbls/d 100mmscf/d 90,000 bbls/d 600mmscf/d 11,000 bpd Successful and Uninter
Slide 9: Purpose-Built Independent Business Model Achieved Through Strategic Acquisitions
PURPOSE-BUILT INDEPENDENT BUSINESS MODEL ACHIEVED THROUGH STRATEGIC ACQUISITIONS Consideration paid to Seller: US$1.3bn2 ▪ Another US$1.1bn in distribution of prior receivables and cash balances 18 OMLs1 ▪ 9 Core Oil Assets; 9 Core Gas Assets ▪ 80 active fields (including 40 producing fields) ▪ ~350
Slide 10: Equity Story
Holdings r a aradel 02 EQUITY STORY
Slide 11: Equity Story Highlights
EQUITY STORY HIGHLIGHTS UNIQUE VALUE PROPOSITION WITH SIGNIFICANT UPSIDE POTENTIAL Aradel Holdings’ robust asset portfolio has been the foundation for its fully integrated business model, enabling a focused and disciplined leadership approach. This synergy has driven a consistent and forward-looking
Slide 12: Established Track-Record with Steady and Sustainable Oil and Gas Production
ESTABLISHED TRACK-RECORD WITH STEADY AS WELL AS SUSTAINABLE OIL AND GAS PRODUCTION Average Annual Crude Oil production (bbls/d) Average Annual Gas Production (Mscf/d) 15,030 13,751 32.4 9,737 8,761 25.7 26.6 24.0 17.8 3,945 2021 2022 2023 2024 Q1 2025 2021 2022 2023 2024 Q1 2025 Refined Products ( k
Slide 13: Safe and Reliable Evacuation for Increasing Production
SAFE AND RELIABLE EVACUATION FOR THE COMPANY’S INCREASING PRODUCTION SUCCESSFULLY IMPLEMENTED THE ACE SYSTEM, STRONG COMPLEMENT TO TNP EVACUATION GIVEN EXPECTED PRODUCTION INCREASE Recent expansion in ACE capacity on Reduced dependency on the stop-start Expected efficiency enhancement with Significa
Slide 14: Key Partnerships to Complement Independent Business Model
KEY PARTNERSHIPS TO COMPLEMENT ITS INDEPENDENT BUSINESS MODEL Partners overview International petroleum group active in hydrocarbons, mines and ▪ Consortium with 3 other key industry players infrastructure and aviation with operations across 10 countries with interest in 4 oil and gas producing fiel
Slide 15: Environmentally, Socially Conscious and Compliant Company
ENVIRONMENTALLY, SOCIALLY CONSCIOUS AND COMPLIANT COMPANY Eliminated routine Inaugurated Trustees for ₦7.0bn disbursed to the Well Defined ESG gas flaring in its its Host Community Trust host community since Strategy and Policy Ogbele Field since Funds 2014 2012 Gas Initiative Active participation i
Slide 16: Robust and Well-Diversified Board
THE COMPANY IS GOVERNED BY A ROBUST AND WELL-DIVERSIFIED BOARD % OF BOARD MEMBERS WITH AT LEAST % OF BOARD MEMBERS WITH POST TYPE OF DIRECTORS ONE DEGREE GRADUATE/SECOND DEGREES GENDER DIVERSITY Non-Executive Director 67% Executive Director 22% 100% 56% Independent Non-Executive 11% Director MALE FE
Slide 17: Board of Directors and Management Team
BOARD OF DIRECTORS AND MANAGEMENT TEAM EFFECTIVE BOARD OF DIRECTORS SUPPORTED BY WORLD CLASS EXPERIENCED MANAGEMENT TEAM World-class management team Ms Patricia Mr Adegbola Mr Osten Mr Adegbite Falade Simon-Hart Ms Kerin Gunter Adesina Olorunsola Board of Directors Executive Director Independent Non
Slide 18: Segment Performance
03 SEGMENT PERFORMANCE 18
Slide 19: Aradel Energy Limited
ARADEL ENERGY LIMITED AN INDIGENOUS OIL AND GAS COMPANY Equity interest in 8 2043 15 MMbbl upstream assets / 15 oil and condensate ₦188.7bn Latest Licenses businesses Producing wells production as at Q1 Q1 2025 Revenue expiry date 2025 Asset/Business Ownership Information Overview of Aradel Energy ▪
Slide 20: Aradel Energy: Oil & Gas Production and Sales Volume
ARADEL ENERGY LIMITED OIL & GAS PRODUCTION AND SALES VOLUME Oil + Condensate Production (Mbbls/d) Gas Production (Mmscf/d) 11.8 6.2 12.0 17.0 82.0 41.7 76.1 79.8 75.1 17.6 2.7 2.6 1.4 1.9 45.0 56.3 49.6 51.1 3.0 2.3 0 0 2.5 12.9 13.1 23.9 8.8 2.2 9.7 32.3 4.5 0.0 25.7 26.5 4.0 17.8 19.5 2021 2022 20
Slide 21: Aradel Gas Limited
ARADEL GAS LIMITED 100mmscf/d 90% 2 major ₦4.9bn gas processing Annual average Offtakers Q1 2025 Revenue facility capacity utilisation Ownership Structure Aradel Gas Overview ▪ Aradel Gas’ supply is contracted to two offtakers – Shell Petroleum Development Company (“SPDC”) and Power Gas Global Inves
Slide 22: Historical Gas Production and Sales Volume
HISTORICAL GAS PRODUCTION AND SALES VOLUME (BSCF) 12.5 11.8 9.4 9.7 9.0 9.2 6.5 6.0 2.2 1.7 2021 2022 2023 2024 Q1 2025 Production Sales 22
Slide 23: Aradel Refinery Limited
ARADEL REFINERY LIMITED 3-train 11kbbl/d 5 Refined 16 million Litres 20 Major ₦55.3bn refinery facility Products Storage Capacity Customers Q1 2025 Revenue Ownership Structure Refinery Business Overview ▪ As at FY 2024, Aradel Refinery produced up to 264.9 million litres of refined products Minoriti
Slide 24: Aradel Refinery: Revenue and Sales Volume per Product
ARADEL REFINERY LIMITED – REVENUE AND SALES VOLUME PER PRODUCT Volume Refined by Product (mm litres) Automotive Gas Oil Heavy Fuel Oil Naphtha Dual Purpose Kerosene Marine Diesel Oil 267.7 264.9 12.8 9.5 153.3 58.9 76.9 74.3 6.6 97.6 37.0 103.4 1.8 49.8 48.0 25.2 16.0 26.4 25.1 33.5 52.0 50.9 15.8 1
Slide 25: Financial Performance
FINANCIAL PERFORMANCE Aaocde! 04
Slide 26: Accelerated Revenue Growth with High EBITDA Margin and Profit After Tax (FY2024)
ACCELERATED REVENUE GROWTH WITH HIGH EBITDA MARGIN AND PROFIT AFTER TAX 2024 Revenue (NGN’bn) 49% 75% 176% 163% 245% 179 28 581 374 Crude Oil Export Crude Oil Refinery Gas Total Revenue FY2024 EBITDA (NGN’bn) 128% 428% 12% 173% 163% 146 9 188% 81 54 582 372 Sales Depreciation & Amortisation Cost of
Slide 27: Accelerated Revenue Growth with High EBITDA Margin and Profit After Tax (Q1 2025)
ACCELERATED REVENUE GROWTH WITH HIGH EBITDA MARGIN AND PROFIT AFTER TAX Q1 2025 Revenue (NGN’bn) -35% 6% 98% 222% 53 4 200 142 Crude Oil Export Crude Oil Refinery Gas Total Revenue Q1 2025 EBITDA (NGN’bn) 98% 342% 39% 98 166% 200 24 66% 1 15 87 Sales Depreciation & Amortisation Cost of Sales Other i
Slide 28: Profitability and Funding Profile
PROFITABILITY AND FUNDING PROFILE STRONG PROFITABILITY SUPPORTED BY SOLID CAPITAL STRUCTURE Total Assets and Return on Assets EBITDA and Net Margin 20% ₦1,832 2000 80% 75% 1800 ₦1,750 18% 64% 70% 1600 15% 16% 58% 65% 60% 14% 45% 1400 55% 50% 12% 44% 1200 1000 ₦923 10% 40% 45% 7% 800 6% 8% 30% 24% 60
Slide 29: Capital Expenditure to Support Growth and Output
CAPITAL EXPENDITURE TO SUPPORT GROWTH AND OUTPUT Capex Breakdown 2023 2024 Q1 2025 6% 4% 1% 14% 23% 1% 1% 37% 0% NGN49bn NGN136bn NGN28.9bn (US$51.5m) (US$87.4m) (US$18.8m) 62% 70% 77% Project Equipment Civil Works Gas Pipeline Gas Plant Facilities Assets Under Development Other PP&E ▪ To further gr
Slide 30: Prudent Cash Flow Management
PRUDENT CASH FLOW MANAGEMENT Cash Flow Analysis ₦412 ₦361 ₦183 ₦312 ₦139 ₦56 ₦32 ₦24 ₦31 -₦10 -₦45 -₦10 -₦50 -₦72 -₦114 -₦129 FY2022 FY2023 FY2024 Q1 2025 Net Operating Cashflow (₦'bn) Net Financing Cashflow (₦'bn) Net Investing Cashflow (₦'bn) Cash at end of period (₦'bn) Cash Flow Analysis $268 $2
Slide 31: Corporate Strategy
Aaocde! 05 CORPORATE STRATEGY
Slide 32: Aradel Holdings Strategic Pillars
ARADEL HOLDINGS STRATEGIC PILLARS LEAN EXCELLENCE ▪ 10% Avg. YoY reduction in UoC over ▪ Drive optimal capacity utilization across the period Upstream, Midstream & Downstream business units through the plan period ▪ Deepen Lean Culture Embedment over the period 7 1 INNOVATIVE TECHNOLOGIES 6 2 GROWTH
Slide 33: Grow Revenue in the Medium-Long Term
GROW ARADEL HOLDINGS’ REVENUE IN THE MEDIUM-LONG TERM Growth agenda enabled by increasing production, capacity, diversification and reducing losses from evacuation Grow Production Capacity (capture reserve) Evacuation Diversification ▪ Scale up production & utilization ▪ Grow reserves position from
Slide 34: Governance & Risk
GOVERNANCE & RISK Aaocde! 06
Slide 35: Corporate Governance
CORPORATE GOVERNANCE INDEPENDENT BOARD COMMITTEES DRIVING STRONG CORPORATE GOVERNANCE Board Committees Board Audit & Finance Committee Governance Remuneration & Chairman: Mr Ede Osayande Nomination Committee Chairman: Mr Afolabi Oladele “Governance is more than a regulatory Assists the Board in its
Slide 36: Board of Directors
BOARD OF DIRECTORS OVERSIGHT BY BOARD WITH BOTH NIGERIAN AND INTERNATIONAL EXPERIENCE MR LADI MR ADEGBITE MR ADEGBOLA MS PATRICIA MS KERIN GUNTER JADESIMI FALADE ADESINA SIMON-HART (CHAIRMAN) (MANAGING (CHIEF FINANCIAL (INDEPENDENT (NON-EXECUTIVE DIRECTOR/CEO) OFFICER) NED*) DIRECTOR) ▪ Chairman, FC
Slide 37: CSR Activities and Alignment with UN Sustainable Development Goals
ARADEL HOLDINGS CSR ACTIVITIES AND ALIGNMENT WITH UNITED NATIONS’ SUSTAINABLE DEVELOPMENT GOALS ARADEL HOLDINGS HAS MADE SIGNIFICANT IMPACT IN LINE WITH THE UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS (1, 3, 4, 6, 7, 8, 9, 11,14 AND 15 ) IN THE FOLLOWING AREAS No Poverty Good Health and Quality Edu
Slide 38: Q&A
A&aoce Q&A
Slide 39: Appendix
aradel @\ Holdings APPENDIX
Slide 40: Senior Management Team
SENIOR MANAGEMENT TEAM STRONG, STABLE TEAM WITH 218 YEARS OF COMBINED EXPERIENCE IN OIL AND GAS SECTOR MRS RITA MR SOLA MR FEMI MR TUNDE OLAREWAJU OLUGBEMIGA OLANIYAN ODEYEMI (GM, HR & (GM, PETROLEUM (GM, ENGINEERING & (GM, NILE DELTA) CORPORATE SERVICES) ENGINEERING) PROJECTS) ▪ Seasoned HR profess
Slide 41: Historical Income Statement (₦)
HISTORICAL INCOME STATEMENT ₦’billions * Q1 2025 FY2024 FY 2023 FY2022 Total Revenues 199.9 581.1 221.1 66.1 Oil Revenues 142.1 373.7 108.4 13.7 Gas Revenues 4.4 28.2 10.2 5.2 Refined Product Revenues 53.3 179.3 102.5 47.2 Cost of sales (121.0) (224.6) (78.8) (23.8) Gross Profit 78.9 356.5 142.3 42.
Slide 42: Historical Statement of Financial Position (₦)
HISTORICAL STATEMENT OF FINANCIAL POSITION ₦’billions * Q1 2025 FY2024 FY2023 FY2022 Non-current assets Property, plant and equipment 682.4 676.6 383.4 223.7 Intangible assets 1.3 1.3 1.2 0.5 Deferred tax assets - - - 12.8 Financial assets 24.7 43.3 4.1 1.9 Investment in associate 591.2 490.0 270.2
Slide 43: Historical Cash Flow Statement (₦)
HISTORICAL CASH FLOW STATEMENT ₦’billions Q1 2025* FY2024 FY 2023 FY2022 Cash flows from operating activities: Cash generated from operations 30.6 399.1 145.5 34.4 Income taxes paid - (27.2) (6.5) (2.6) Net cash flows from operating activities 30.6 311.9 139.0 31.9 Cash flows from investing activiti
Slide 44: Historical Income Statement (US$)
HISTORICAL INCOME STATEMENT US$’millions Q1 2025 FY2024 FY 2023 FY2022 Total Revenues 131.4 392.7 342.3 156.1 Oil Revenues 93.4 252.5 170.0 32.3 Gas Revenues 2.9 19.0 15.3 12.3 Refined Product Revenues 35.1 121.2 157.0 111.5 Cost of sales (79.5) (151.8) (133.7) (56.2) Gross Profit 51.8 240.9 208.7 9
Slide 45: Historical Statement of Financial Position (US$)
HISTORICAL STATEMENT OF FINANCIAL POSITION US$’millions * Q1 2025 FY2024 FY2023 FY2022 Non-current assets Property, plant and equipment 441.2 440.7 426.3 498.7 Intangible assets 0.8 0.8 1.4 1.0 Deferred tax assets - - - 28.4 Financial assets 16.2 28.2 4.5 4.1 Investment in associate 384.8 319.1 300.
Slide 46: Historical Cash Flow Statement (US$)
HISTORICAL CASH FLOW STATEMENT US$’millions Q1 2025* FY2024 FY 2023 FY2022 Cash flows from operating activities: Cash generated from operations 20.3 240.1 216.7 79.8 Income taxes paid - (17.7) (10.1) (6.2) Net cash flows from operating activities 20.3 222.4 206.6 73.6 Cash flows from investing activ
Slide 47: Contact Details and Additional Resources
CONTACT DETAILS ADDITIONAL RESOURCES Aradel Holdings Plc Results Adegbola Adesina Full Year 2024 Financial Statements Here Chief Financial Officer Q1 2025 Financial statements Here Email: adegbolaadesina@aradel.com Full Year 2024 Results Press Release Here IR@aradel.com Q1 2025 Results Press Release
Slide 48: Thank You
Thank You 49