Report : Five Leading Nigerian Oil Firms’ Revenues Hit N625bn in H1, 2022

Emmanuel Addeh in Abuja

Five leading oil and gas companies in Nigeria raked in about N625.075 billion as revenue in the half year of 2022, as against N444.254 billion in the same period last year, a report by Nairametrics research has indicated.
The information, it said, was contained in the half year financial statements of the companies which saw the companies’ revenues rising by 40.7 per cent compared to half year 2021.

It noted that  Oando Plc was excluded because it had yet to release its half-year results at the time of the report.
Conoil Plc reported a decline of 16.83 per cent in revenue during the half year but reported revenue of N56.248 billion during the period as against N67.638 billion representing a drop of 16.83 per cent.

Also, Ardova Plc posted revenue of N126.650 billion for the first half of the year 2022 from N86.770 billion in 2021, accounting for an increase of 45.96 per cent as the firm also grew revenue occasioned by  the rising cost of fuel on the back of the Russia-Ukraine war.

The company is the 76th most traded stock on the Nigerian Stock Exchange (NSE) over the past three month.
On its part, 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 half year 2022 from N151.333 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, it said.
The company commenced the year with a share price of N221.90 and has since gained 5.68 per cent on that price valuation, ranking it 48th on the NGX in terms of year-to-date performance.

In addition, Seplat Energy Plc sustained a positive trajectory during the half year ended June 30, 2022, with 82 per cent growth in revenue.  The company reported a revenue of N219.203 billion in its half-year 2022 revenue from N120.444 billion a year ago, taking advantage of the global rise in oil and gas due to the Russian invasion of Ukraine and operational headwinds in the first half of the year.

The oil firm started the year with a share price of N650.00 and has since gained 120 per cent on that price valuation, ranking it fifth on the NGX in terms of year-to-date performance.
It projected that listed upstream oil and gas firms will continue to be profitable due to increased cost reduction initiatives.

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 also reported a 22.74 per cent drop in revenue for the first half of the year 2022 to N13.960 billion as against N18.069 billion in 2021.

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, the report said.

Meanwhile, the oil and gas industry’s growth and profitability are still dependent on operator pricing and quantity, Agusto & Co said in a report.

The rating agency which stated this in a 2022 oil & gas storage industry report said the decreased profit margins, idle or underused capacity, and constrained ability to pay operating and finance expenses could be countered by higher throughput revenue, product diversification plans and efficient downstream company operation.

The agency noted that the Nigerian oil & gas storage industry’s performance maintained an upward trajectory in the year 2021 driven by increasing demand for petroleum products.