Nigeria’s top homegrown E&P firm, Niger Delta Exploration & Production Plc (NDEP), has announced a 28% year on year increase in revenue, proposed a large dividend for its shareholders, is finalizing an upstream asset acquisition, wrapping up an infill drilling campaign, and has determined it wants to rebrand with a name change.
The company’s gross profit increased from $39Million in 2021 to $100Million in 2022. Its operating profit more than doubled year on year from $30Million to $69Million, with operating margin in ascent from 23% to 41% in US dollars.
Profit after tax (PAT) crashed from $73Million to $35Million and return on equity plunged from 10% to 5%.
This relatively healthy balance sheet was achieved in the context of a significant drop in hydrocarbon output in NDEP’s sole producing field-the Ogbele field-as a result of the nine month outage of the Trans Niger Pipeline, (TNP), the crude oil export pipeline.
Average daily crude oil output dropped from 8,761Barrels of Oil Per Day (BOPD) to 3,945BOPD and accompanying gas production headed south to 6.51Billion cubic feet (Bcf) in 2022, 31% lower than the 2021 9.39Bcf in 2021.
Still, based on the result of front-end studies commissioned in anticipation of further development of the Ogbele Field, NDEP commenced a four-well drilling campaign in September 2022 -right in the midst of the uncertainty wrought by the pipeline outage. That campaign has been largely successful and it is expected to be completed in Q4, 2023.
The company is also in the final stages of an upstream asset acquisition (and subsequent development) which is expected to be completed in 2023. NDEP did not provide the name of the asset.
While the upstream business was massively constrained, the downstream unit practically took off. NDEP says that the focus of realizing value in 2022 was the company’s 11,000BPSD capacity refinery complex. Refined delivery volumes rose 105.0% to 152.84Million litres (MMlitres) relative to 74.53MMlitres in 2021, “driven by debottlenecking the refinery production from upstream oil production and actively pursuing its monetisation strategies. Capacity utilisation improved to 24.0% from 12.5% in 2021; underscoring further upside potential as well as additional opportunities that exist to further optimise the refinery business”.
NDEP apparently feels good about its place in the sun and has determined that it is time for a rebranding and official name change. It is the first name change in 27 years. NDEP was incorporated on March 25, 1992 (as the Midas Drilling Fund) and assumed its current name in November 1996. The company plans an elaborate coming out party in August 2023 to unveil its name change to Aradel Holdings Plc “as part of a strategic rebranding initiative aimed at better reflecting the Company’s current portfolio and positioning it for future growth”, its management says in a release.
The integrated indigenous energy company says that the name change underscores its commitment to repositioning itself as a leading African company, dedicated to providing sustainable energy solutions that drive economic growth now and in the foreseeable future.
“This unique name honours our heritage and 30-year legacy as an industry pioneer while reflecting our current portfolio and future ambitions”. ‘Gbite Falade, Chief Executive Officer of NDEP, enthuses.
“Over the years, our business has evolved significantly, and we have successfully expanded our presence across the entire value chain of the oil and gas industry, including renewable energy. The new brand, Aradel Holdings Plc, not only represents our present endeavours but also encompasses our future aspirations”, the company explains