Five oil and gas companies increased their revenues by 41% in the first quarter

Five prominent indigenous oil and gas businesses reported N625.08 billion in revenues for the first half of 2022, a 40.7% increase over the N444.25 billion they brought in during the same period in 2021.

Although these companies’ revenues increased by 40.7%, data from 2021 that was collected from the Nigerian Exchange Limited (NGX) revealed that both endogenous and external problems that are currently hindering the nation’s business environment had a detrimental impact on their performances.

Ardova Plc reported revenue of N126.6 billion for the first half of the year 2022, an increase of 45.96% from the N86.770 billion reported in 2021. On August 10, 2022, Ardova concluded its final trading session at N13 per share on the (NGX). Over the previous three months, the company’s stock has been traded 76 times on the Nigerian Stock Exchange (May 10 to Aug 9, 2022).

Additionally, Seplat Energy Plc maintained its upward trajectory for the six-month period ending June 30, 2022, as revenue increased by 82 percent. In comparison to the N120.44 billion it generated the year before, the corporation reported revenue of N219.203 billion for the first half of 2022.

On August 10, 2022, Seplat ended its final trading session at N1, 430.5 per share on the (NGX). The oil company’s share price was N650 at the beginning of the year, and it has since increased by 120%.

However, 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 compared to N18.069 billion realized in 2021. This was due to financial and operational headwinds in the first half of the year.

On Wednesday, August 10, 2022, the company’s final trading day, it ended at N1.05 per share on the (NGX). The Offshore Support company had a share price of N1.72 at the beginning of the year, but it has now dropped 36.6 percent from that level, placing it 154th on the NGX in terms of year-to-date performance.

Conoil Plc also recorded a decrease in revenue of 16.83% for the first half of the year as the oil and gas company struggled to survive in the operational environment amidst economic instability. Conoil reported revenue of N56.248 billion for the first half of 2022 as opposed to N67.638 billion, a decrease of 16.83%.

On August 10, 2022, Conoil concluded its last trading day on the Nigerian Stock Exchange at N25.95 per share (NGX). With a share price of N22 at the beginning of the year, it has subsequently increased by 18%, placing it 32nd on the NGX in terms of year-to-date performance.

Total Energy Plc took advantage of the increased oil prices to raise revenue by 38.12% over the review period. The company’s revenue increased by 38.12% to N209.014 billion in the first half of 2022 from N151.33 billion in the previous year.

Total Energies Marketing Nigeria reported an increase in income, which was attributed to higher product prices and increased consumer demand in the first half of 2022. On August 10, 2022, the business finished its final trading day at N234.50 per share on the (NGX). It started the year with a share price of N234.5, and as of today, it has increased in value by more than 5.68%, placing it 48th on the NGX for the year as a whole.

President of the Investors Alternative Dispute Resolution Initiative (IADRI), Moses Igbrude, responded to the performance by saying: “It is a good performance and an exceptional result.

They should be commended for doing this despite the tough economic climate in which they compete with private businesses and are the only source of gasoline imports.

“In order to improve this performance, the companies should concentrate more on their areas of comparative advantage, such as lubricant manufacture, diesel import, pesticide production, as well as the vehicle services industry and any other sectors where they can generate healthy profit margins. Effective cost management is something else they ought to do, he added.

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