A recent report by the National Bureau of Statistics (NBS) identified the oil and gas sector as having the highest contraction in the second quarter of this year 2022.
The oil sector has consistently recorded negative growth for the ninth consecutive quarter, contracting again by -11.8% y/y in Q2 2022 following a higher contraction of -26% y/y in Q1.
Following the current market apathy occasioned by the build-up to the 2023 general election which saw the NGX All Share Index (ASI) drop below 50,000 index points to close trading at 49,836.51 points on August 31, 2022, the Oil & Gas Index which measures the performance of the oil and gas firms quoted on the NGX recorded a decline of 4.3 percent to 532.15 points from 556.28 points it opened for trading in August.
This is despite the fact that the sector is leveraging the rise in crude oil prices as a result of the Russian-Ukraine crisis.
Concerns of investors about the political risk associated with general elections in Nigeria have impacted negatively on the shares of the firms listed in the oil and gas sector and equities market at large and may likely continue as political parties are set to begin 2023 election campaigns.
However, some of these companies managed to weather the storm. According to data obtained by Nairametrics from the NGX which focused on the top performing oil and gas stocks during the month of August 2022, Japaul Gold Plc, Adova Plc, Conoil Plc, and Oando Plc made the list of the best four performing firms.
These stocks were selected based on their price performance from year to date and are represented by the percentage gained.
Oando – 2%
- The share price of Oando Plc, grew by 2% during the period under review, from N5.00 per share to N5.10 per share, lifting the market capitalization to gain N1.243.14 billion or 2.% to close at N63,400 billion in August 31, 2022, from the opening figure of N62.157.06 billion.
- During the twelve months ended December 31, 2020, Oando’s production was 44,550 boe/day, compared to 42,492 boe/day in 2019. In 2020, production consisted of 15,912 bbls/day of crude oil, 1,757 boe/day of NGLs and 161,288 mcf/day (26,881 boe/day) of natural gas.
- The increase in production was a result of increased natural gas production at OML 60-63 (22%) offset by a 29% decrease in NGL production and a 5% and 15% crude production decrease at OML 56 and OML 13 respectively.
- Oando closed on September 6, 2022, at N5.20 per share on the Nigerian Stock Exchange (NGX). Oando began the year with a share price of N4.42 and has since gained 17.7% on that price valuation, ranking it 33rd on the NGX in terms of year-to-date performance.
Conoil Plc – 2.12%
- Shares of Conoil Plc gained 2.12% in price during the month, from N25.95 to N26.50 per share. The company enjoyed buy-interests which drove up the market capitalization to gain N381 million to close at N18,389.73 billion at the close of trading on August 31, 2022, from the opening figure of N18,008.06 billion at the beginning of trading on August 1st.
- Conoil Plc reported a decline of 16.83% in revenue during the half year of 2022 as the oil and gas firm battled to remain afloat amid volatility in the economy. Conoil reported revenue of N56.248 billion during the half year of 2022 as against N67.638 billion representing a drop of 16.83%.
- Conoil closed its last trading day (Tuesday, September 6, 2022) at N26.50 per share on the Nigerian Stock Exchange (NGX). Conoil began the year with a share price of N22.00 and has since gained 20.5% on that price valuation, ranking it 31st on the NGX in terms of year-to-date performance.
Adova Plc-5%
- Shares of Adova Plc have also enjoyed a positive run during the month. The oil firm gained 5% in price during the month, from N12.00 to N12.60. The company enjoyed buy-interests which drove up the market capitalization to gain N781 million to close at N16,411 billion at the close of trading on August 31, 2022, from the opening figure of N15,629.26 billion at the beginning of trading during the period under review.
- 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% as the firm leverage from the rising cost of fuel occasioned by inflation and the Russia and Ukraine war.
- Ardova share price currently trades at N12.30 per share on the Nigerian Stock Exchange (NGX). It began the year with a share price of N13.00 but has since lost 5.38% off that price valuation, ranking it 107th on the NGX in terms of year-to-date performance.
Japaul Gold Plc – 43.47%
- The share price of Japaul Gold Plc, grew by 43.47% during the period under review, from 23 kobo per share to 33 kobo per share, lifting the market capitalization to gain N626.27 million or 43.47% to close at N2,066.69 billion on August 31, 2022, from the opening figure of N1,440.42 billion.
- Japaul’s revenue for the half year ended June 2022 declined by 64.14% from N313.62 million to N112.46 million in 2021. Loss after tax stood at N427 million from N258 million in 2021.
- The company’s share price currently trades at N0.29 per share on the Nigerian Stock Exchange (NGX), recording a 3.3% drop from its previous closing price of N0.30. Japaul Gold and Ventures began the year with a share price of N0.39 but has since lost 25.6% off that price valuation, ranking it 150th on the NGX in terms of year-to-date performance.
