Aradel Holdings’ Market Value Plummets by N650bn in Four Months 

Kayode Tokede 

Despite an impressive financial result for the first quarter ended March 31, 2025, the market value of Aradel Holdings Plc, has depreciated by a whooping N650 billion in first four months of 2025 over investors profit-taking and sentiment. 

Stock price of the integrated oil and gas service company listed on the Nigerian Exchange (NGX) closed at N598 per share in 2024. It has since declined by 25.08 per cent or N150 per share to close April 30, 2025 at N448 per share on the Nigerian Exchange Limited (NGX).

The company declared N67.2 billion profit Before Tax in first quarter (Q1) of 2025, about 70.1 per cent increase from N39.50 billion in Q1 2024, while profit after tax   closed Q1 2025 at N34.2 billion, representing an increase of 55.3 per cent from N22 billion declared in Q1 2024.

Aradel Holdings had in 2024 financial year declared N316.8 billion profit before tax, an increase of 182.4 per cent from N112.2 billion in 2024.

On the backdrop of impressive performance, the management of the company declared a final dividend of N22.00 for every ordinary share of N0.50 each (bringing the total dividend for the financial year ended December 31, 2024, to N30.00 per share. 

In 2024, the market value of Aradel Holdings dropped by N454.91 billion when it was listed at N702.70 per share and close at N598.00 per share. 

The stock price reached a peak of N820 per share the following day it was listed on Exchange over surge investors demand.

However, the momentum shifted on the third day as investors began selling off their shares. Aradel Holdings’ stock price dropped sharply, closing at N772 per share, down from N820 per share.

The Exchange had announced the listing of Aradel Holdings’s 4,344,844,360 ordinary shares of 50 kobo each at N702.69 per share on its main board.

The listing marked a major milestone in the oil and gas sector’s participation in Nigeria’s stock market.

The sharp decline in Aradel Holdings’ stock price has raised concerns among investors, highlighting cautious sentiment in the market.

Analysts believe the development reflects an increase in the number of shares due to the share split, stressing that the company is undergoing share correction on NGX.

The Vice President, Highcap Securities Limited, Mr. David Adnori stated that the split has provided shareholders with additional shares, allowing them to realise profits in the period under review.

He added, “At the new price level, many shareholders are taking profits. Additionally, it seems the stock may have been overpriced by the market or management, having been listed at N702.00 per share.”