Corporate Result: Aradel Holdings achieves 69.6% revenue growth in Q1 2025

Aradel Holdings Plc released its unaudited Q1 2025 financial results, reporting a 69.6% y/y and 11.1% q/q
increase in revenue to $131.4mn, up from $77.38mn in Q1 2024. The strong revenue growth was primarily
driven by a 177.0% y/y surge in crude oil revenue, supported by a 12.1% increase in production volumes
from additional wells drilled, enhanced utilization of the Trans Niger Pipeline (TNP), reduced crude losses,
and the deployment of the Alternative Crude Evacuation (ACE) system, which was implemented primarily
to sustain production levels.

These factors resulted in higher crude oil sales of 1.2mn barrels in Q1 2025, compared to 0.39mn barrels in Q1 2024. Further improvements are anticipated in Q2 2025. Conversely, gas pipeline disruptions during the quarter led to a decline in revenue from refined products and gas by
8.75% and 44.53% respectively. These issues have since been resolved, with a recovery expected by the
end of the second quarter. Geographically, revenue from domestic contracts declined by 13.0% y/y, while
revenue from international contracts rose significantly by 177.0% y/y.

Cost of sales rose by 170.1% y/y and 28.7% q/q, primarily driven by a 152.7% y/y increase in royalties and
other statutory expenses, alongside a 49.4% y/y rise in crude oil handling charges. General and
administrative expenses increased by 114.2% y/y but declined 41.8% q/q. The year-on-year increase was
largely attributable to higher staff costs following the implementation of a cash-settled share-based
incentive scheme, which obligates the Group to pay senior and executive management a cash amount
linked to the excess value above the company’s baseline enterprise value.

Additional factors included staff additions, higher employee remuneration, and increased costs relating to permits, licenses, and
subscriptions. As a result, the operating profit margin declined to 31.8% from 35.1% in the prior year,
despite a 54.0% y/y increase in operating profit on the backdrop of higher sales volumes in Q1 2025.
Aradel’s finance costs rose sharply by 1,475.0% y/y to $819,000, primarily driven by an 80.7% y/y increase
in bank borrowings used to finance the SPDC acquisition. Consequently, the PBT rose by 46.2% y/y while
the PBT margin declined by 9.3% y/y.

The completion of the SPDC acquisition by the Renaissance consortium on March 11, 2025, marks the
conclusion of a landmark transaction that strengthens Aradel’s long-term growth prospects and enhances
its potential for increasing value creation. During the quarter, Aradel increased its investment in
Renaissance by $46.69m, resulting in a total equity interest of 33.3% in Renaissance Africa Energy
Holdings — comprising a direct stake of 12.5% and an additional 20.8% held through ND Western.

Aradel delivered a strong start to 2025, driven by increased crude production, higher sales volumes, and
strategic investments that strengthen long-term value. The successful SPDC acquisition and expanded
equity stake positions the Company for enhanced growth and future cash flows. Despite higher costs
linked to growth initiatives, Aradel’s operational expansion and optimized evacuation infrastructure provide
a solid foundation for sustained performance in the months ahead