Sunday, November 21, 2021, 10:30 AM / by Tosin Ige, Proshare Research/ Header Image Credit: Oil and Gas IQ
Nigerian oil and gas companies reported modest growth in the first nine months of 2021. The latest results of selected NGX-listed companies show an increase in earnings and balance sheet growth despite the lingering COVID-19 pandemic and uncertainty in the outlook for fossil fuels.
The 9M 2021 performance posted substantial improvement from the corresponding period in 2020. The average revenue growth across six selected oil companies ( Ardova , Conoil , Eterna , MRS , Seplat , and Total ) for the 9M 2021 stood at +36.84% Year-on-year (Y-on-Y). Specifically, Seplat , Total , MRS , and Eterna reported a significant growth in top and bottom-line figures while Ardova and Conoil reported a moderate increase.
Key Highlights
Table 1: Selected Oil and Gas Industry Performance Matrix Proshare Nigeria Pvt. Ltd. Proshare Nigeria Pvt. Ltd. Share Price Movements-A Bulls Playground
The year-to-date (YTD) movement of Seplat ‘s share price maintained its bullish trend for a significant part of the 9M 2021. The share price traded downward slightly in the later half of January and September 2021 but quickly reverted to its upward movement with a YTD gain of +81.83% as of November 11, 2021. The company’s share price had a high and positive correlation with the NGX Oil and Gas Index at 0.93.
Compared with the NGX Oil and Gas Index, the company share price had higher volatility and outperformed the industry average. Total ‘s share price traded relatively flat and consistent with the NGX Oil and Gas Index movement. The YTD gain of the share price settled at +85.23% as of November 11, 2021. The share price had a high and positive correlation with the NGX Oil and Gas Index movement at 0.91 but performed below the index ( See Chart 1 below ).
Chart 1 : YTD Movement in Seplat and Total Share Price and NGX Oil & Gas Index as of November 11, 2021 Proshare Nigeria Pvt. Ltd. The YTD share prices movement of Ardova , Conoil , Eterna , and MRS was volatile and underperformed the NGX Oil & Gas Index in the three quarters. Specifically, Ardova share price gained slightly by +2.95% YTD as of November 11, 2021, with a negative and weak correlation with the NGX Oil & Gas Index at -0.21 in the period under […]
