Aradel Holdings reported a dramatically higher turnover for January to June but saw no commensurate boost in earnings.

Within the period, global oil drillers generally cashed in on the sweeping supply chain disruption induced by the US-Israeli War against Iran. The oil and gas corporation, which last year completed a majority stake purchase in ND Western, an oil drilling firm where it previously held a non-controlling interest, expanded revenue nearly seven times to ₦2.5 trillion from ₦368.1 billion.

That sharp pace of growth could not be matched by after-tax profit, which climbed to ₦191 billion from ₦146.4 billion as exploding costs ate away at revenue.

Escalation in the Middle East, following the eruption of the war against Iran in February, has hindered a seamless supply of crude around the world, particularly through the Strait of Hormuz, a critical energy chokepoint that carries roughly 20 per cent of global petroleum and liquefied natural gas.

In consequence, oil price spikes are creating a bonanza for energy companies, with Big Oil like Exxon and Chevron reaping $26.5 billion in joint windfall off the back of the war, and Aradel’s local rival Seplat reporting a 430 per cent half-year profit surge on Thursday.

Aradel derived 77.8 per cent of revenue from crude oil exports during the review period, according to its unaudited accounts issued on Friday. Average daily oil production jumped by 258 per cent, while average daily gas output increased by 1,121 per cent.

Its refining business, situated at the Ogbele field in Rivers State and capable of processing 11,000 barrels of crude daily, generated ₦129.5 billion from the sale of refined products, up 8.1 per cent.

The corporate results took a hit from other losses, which totalled ₦213.1 billion, compared with a gain of ₦8.6 billion one year prior. Finance costs, which rose to ₦326.1 billion from ₦11.1 billion, also weighed on performance.

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EBIT margin stood at 42.4 per cent, up from 32.2 per cent. Share of profit of an associate, which came in at ₦71.3 billion a year ago, delivered nothing this time around.

Tax spending ballooned by 1,150.4 per cent to ₦561.7 billion as current tax surged, heaping pressure on earnings. Profit before tax leapt 293.4 per cent to ₦752.7 billion.

“A firmer price environment supported performance, generating net cash from operating activities of ₦975.6 billion and a closing cash balance of ₦1,716.6 billion,” Adegbite Falade, the CEO, said in a separate statement on Friday.

“This drove the reduction in net debt to ₦46.5 billion at year’s end, from ₦475.1 billion in the prior year,” he added.