The oil and gas industry in Nigeria has continued its four-month buy-side surge, rising 27% since the end of April.
An 8% increase in August can be attributed to the sector’s companies’ positive stock performance.
The depreciation of the naira had a significant negative impact on the sector throughout the first half of the year, although buy pressure picked up again in June and continued until August.
As of the third week of August, the market volume on the sector’s index, NGSEOILG5, is 310 million shares, a 103% increase over the amount recorded for the entire month of July.
As of April 2024, the industry is still experiencing strong buy pressure, and the NSE Oil & Gas index has not yet recovered to a new weekly low. The buy push is being bolstered by the surge in individual equities inside the index.
The top-performing oil and gas firms in Nigeria that have contributed to the industry’s growth this year are listed below on the stock market:
1. Oando
In the oil and gas industry, Oando is the most successful corporation. From January 1, 2024, to August 23, 2024, the company’s shares increased 341% year to date on the strength of a very strong purchase trend.
The company declared at the beginning of August that it would close a $783 million acquisition agreement with Nigeria Agip Oil Company, an Eni subsidiary.
The revelation improved investor confidence in the company’s stock, which closed at N47 after closing higher for three straight months. It had already increased by 91% in the third week of August.
2. Conoil
On the Nigerian stock market, Conoil is the second-best-performing oil and gas corporation. As of August 23, 2024, the company’s share price has increased 71% year over year.
In the second quarter of 2024, the company announced a 71% increase in revenue year over year and a 13% increase in pre-tax profit. The company’s owners also declared an N3.50 dividend payment to registered members, an increase of 40% from the previous year.
Conoil is up 37% from the market close of N105 per share in June 2024 to its current selling price of N144.
3. Seplat Petroleum
On the Nigerian stock market, Seplat is the third-best-performing oil and gas company. The share price of the company had increased 63% in the year up to the opening of the market on August 23.
The company’s shareholders declared in the second quarter of 2024 that interim dividends to registered members would be paid out in the amount of US 3 cents, or N47.13. This represents a 152% increase in payments over the previous year compared to 2023.
The company’s share price momentarily reached N4,000 on August 24, 2024, rising by 9% from the previous week’s closing before dropping down to N3,730 in the second week of August 2024. This enhanced investor confidence and market volume.
4. Eterna oil
On the Nigerian stock market, Eterna Oil is the fourth-performing oil and gas company. Since January 1, 2024, the company’s share price has increased by 43% year to date.
Eterna oil said that its second-quarter sales increased by 112% year over year to N147 million, while gross profits increased by 103% for the period ending June 30, 2024. As a result of this announcement, the stock finished higher in June and July, improving market confidence.
After a retracement that saw it drop to N12 in May, the company is now trading at N19 per share on the stock market.
5. Total Nigeria PLC
Based on performance thus far this year, Total Nigeria ranks fifth among oil and gas companies on the stock market. From the company’s first trading day of the year to August 23, 2024, the share price has increased by 46%.
The corporation announced in the second quarter of 2024 that it will distribute N25 in dividends to members, for a total of N8.49 billion. As a result, during the second week of July 2024, market sentiment for the company’s shares increased.
The stock increased by 31% to a share price of N563 in the third week of August 2024 when buy-side pressure on the company’s stock resumed during the trading week commencing June 9, 2024.
6. MRS (CHEVRON)
Based on the year-to-date appreciation of its share price, Chevron ranks sixth among oil companies on the Nigerian stock market. As of the trading day beginning August 23, 2024, the company’s shares has increased by 26% year to date.
The business’s shareholders declared in the second quarter of 2024 that members whose names were on file with the company before June 28, 2024, would receive a final dividend of N2.36.
The company’s stock saw more volume as a result, which raised the share price in August. The stock is presently seeing significant buy-side pressure at N132 per share.
