Friday, January 15, 2021 / 06:00 AM / By Proshare Research/ Header Image Credit: EcoGraphics Proshare Nigeria Pvt. Ltd. The O&G Business Gambit
P rofitability – Priming the Money Pump
Revenue
The latest result of NDEP shows an increase in earnings and financial position of the group despite instability in the industry which impacted the price of products and volume sold.
Revenue increased by +17.69% year-on-year (Y-o-Y) from N39.05bn in 2018 to N45.96bn for FY 2019, revenue from the sale of crude oil grew Y-o-Y by +30.18% while revenue from diesel and gas declined by -31.46% and -11.33% respectively.
Debt-to-revenue increased to 50.15% against 31.10% in 2018, this is as a result of +89.77% growth recorded in the debt size of the Company.
In USD terms, revenue for the upstream and downstream player in the O&G industry for 2019 was $127.24m against $149.73m for 2018 using the official CBN rate during the different periods ( see chart 10 below ).
Proshare Nigeria Pvt. Ltd.
Oil price was heavily impacted by COVID-19 and KSA-Russia price war; the revenue of the company was not directly impacted by the COVID-19 pandemic, however, OPEC+ cuts are likely to impact the performance of the company.
Seplat Petroleum Development Company reported a -10.70% decline in its revenue for year-to-date (YTD) September 2020, this was against N151.88bn recorded in the same period of the previous year to N135.62bn. This was majorly driven by a -10.92% decline in gas sales despite a +7.88% increase in crude oil sales ( see chart 11 below ).
The company did not record revenue from gas processing as it has ceased to process gas for Nigerian Petroleum Development Company (NPDC).In contrast to the -10.70% decline in Naira terms, in USD terms, SPDC ‘s revenue declined by -28.07%. From $494.84m recorded in YTD September 2019 to $355.96m in YTD September 2020. The Company lost $85.92m as a result of the devaluation of the domestic currency, that is, USD terms translation cost. Proshare Nigeria Pvt. Ltd. 11 Plc (formerly Mobil Oil Nigeria) recorded a marginal decline in its financial position for 9months 2020, which shows the company was not heavily impacted by the COVID-19 pandemic and the oil price war. Revenue for the company has an upward trend, however, in 9months 2020 the company’s revenue declined -18.91% year-on-year (Y-o-Y), from N141.51bn in 9months 2019 to N114.75bn in 9months 2020. The drop in revenue also translated […]