Five leading indigenous oil and gas companies have posted N625.08 billion revenues in the half year (H1) of 2022, 40.7 per cent higher than their performance in the corresponding period of 2021 when they recorded N444.25 billion.
Although the revenue of these firms rose by 40.7 per cent, from 2021 figure data obtained from the Nigerian Exchange Limited (NGX) showed that their performances were negatively affected by both endogenous and exogenous challenges currently impeding the country’s business environment.
Ardova Plc posted revenue of N126.6 billion for the first half of the year 2022 up from N86.770 billion recorded in 2021, accounting for an increase of 45.96 per cent. Ardova closed its last trading day on August 10, 2022, at N13 per share on the (NGX). The company is the 76th most traded stock on the Nigerian Stock Exchange over the past three months (May 10 to Aug 9, 2022).
Also, Seplat Energy Plc sustained a rising profile during the half year ended June 30, 2022, as revenue rose by 82 per cent. The company reported a revenue of N219.203 billion in its half-year 2022 from N120.44 billion achieved in the previous year.
Seplat closed its last trading day on August 10, 2022, at N1, 430.5 per share on the (NGX). The oil firm started the year with a share price of N650 and has since gained 120 per cent on that price valuation.
However, following financial and operational headwinds in the first half of the year, Caverton Offshore Support Group Plc, a provider of marine, aviation and logistics services to local and international oil and gas companies in Nigeria reported a 22.74 per cent drop in revenue for the first half of the year 2022 to N13.96 billion against N18.069 billion achieved in 2021.
The company closed its last trading day (Wednesday, August 10, 2022) at N1.05 per share on the (NGX). The Offshore Support firm began the year with a share price of N1.72 but has since lost 36.6 per cent off that price valuation, ranking it 154th on the NGX in terms of year-to-date performance.
Similarly, Conoil Plc also reported a decline of 16.83 per cent in revenue during the half year as the oil and gas firm battled to remain afloat in the operational environment amid volatility in the economy. Conoil reported revenue of N56.248 billion during the half year of 2022 as against N67.638 billion representing a drop of 16.83 per cent.
Conoil closed its last trading day on August 10, 2022, at N25.95 per share on the Nigerian Stock Exchange (NGX). It started the year with a share price of N22 and has since gained 18 per cent on that price valuation, ranking 32nd on the NGX in terms of year-to-date performance.
Total Energy Plc leveraged the higher oil prices to gain a 38.12 per cent increase in revenue during the review period. The company recorded a revenue of N209.014 billion in the half year 2022 from N151.33 billion in 2021, accounting for an increase of 38.12 per cent.
The growth in revenue reported by Total Energies Marketing Nigeria was driven by higher product prices and demand from consumers in the half year of 2022. The company closed its last trading day on August 10, 2022, at N234.50 per share on the (NGX). It commenced the year with a share price of N234.5 and has since gained more than 5.68 per cent in that price valuation, ranking 48th on the NGX in terms of year-to-date.
Reacting to the performance, the President of Investors Alternative Dispute Resolution Initiative (IADRI), Moses Igbrude, said: “It is a good performance and an excellent result.
This is despite the unfavorable economic environment where the government is a competitor and sole importer of petrol, coupled with forex shortage, kudos to them.
“To improve on this performance, the companies should focus more on their competitive advantage areas such as lubricant production, diesel import, insecticide production as well as car services business and any other areas where they can make good margins in their business operations. They should also manage their costs effectively,” he said.
