Adegbite Falade-led Aradel Commits 20 Million To Chappal Energies Acquisition

Aradel commits 20 million to boost its stake in Chappal Energies, aiming to strengthen its presence in Nigerias natural gas and offshore sectors.

Cash flow from operations plunged 45.1 percent in Q1 2025, impacted by delayed crude and gas payments and the Chappal investment.

Despite cash pressure, Aradels Q1 revenue surged 97.6 percent to N199.87 billion 124.19 million, with profit after tax rising 55.3 percent.

Aradel Holdings, the Nigerian energy group led by Adegbite Falade , has committed 20 million toward acquiring a bigger stake in Chappal Energies. The move is part of a broader plan to diversify its operations and build a stronger presence in Nigerias energy sector. However, setting aside the funds has had an immediate impact on Aradels finances, contributing to a drop in cash flows, according to the companys unaudited financial report for Q1 2025 .

For the period, Aradel reported cash flows from operations of N30.6 billion 19 million, down 45.1 percent from N55.8 billion 34.67 million a year earlier. The company pointed to two main reasons for the decline: a delay in receiving N70.3 billion 43.7 million from crude and gas sales, and the 20 million earmarked for the Chappal Energies deal. Despite the setback, Aradel says it remains confident about the long-term payoff.

We believe strongly in the value these assets will bring, Managing Director Adegbite Falade said. Gas will be a critical part of Nigerias energy future, and we are committed to playing a major role in that journey. The investment builds on Aradels earlier acquisition of a 5.14 percent equity stake in Chappal Energies in December 2024 . This reflects the growing focus on natural gas and offshore assets, areas it sees as essential for long-term growth.

Originally known as Niger Delta Exploration Production Plc, Aradel has steadily grown into a major player across Nigerias upstream, midstream, and downstream sectors. Under Falade s leadership, it has expanded its footprint while adapting to changes in the energy landscape.

While cash flow has taken a hit, Aradels overall financial performance for the first quarter tells a different story . The company posted a 97.6 percent jump in revenue to N199.87 billion 124.19 million, up from N101.16 billion 62.86 million a year earlier. Profit after tax also climbed 55.3 percent to N34.2 billion 21.25 million.