The Nigerian oil and gas sector has maintained a four-month buy-side run, up 27% from April’s closing.
The positive stock performance of companies in the sector has contributed to an 8% August rise.
Although the sector was severely impacted by the naira’s depreciation in the first half of the year, buy pressure returned strongly in June, stretching into August.
Market volume on the sector’s index, NGSEOILG5, is currently at 310 million shares in the third week of August, spiking by 103% compared to the volume recorded in the entire month of July.
The NSE Oil & Gas index has yet to retrace to a new weekly low, as the sector remains under heavy buy-pressure as of April 2024. Individual stocks on the index are also surging, adding to the buy push.
Here are the best performing Nigerian oil and gas companies contributing to the rise of the sector year-to-date, in the stock market:
6. MRS (CHEVRON):
Chevron is the 6th oil company in the Nigerian stock market based on share price appreciation year-to-date. The company’s stock has ascended by 26% year-to-date as of the trading day starting August 23, 2024.
In the second quarter of 2024, shareholders of the company announced the payment of a final dividend of N2.36 to members whose names were found in its books before June 28, 2024.
This spurred volume on the company’s stock, pushing the share price upwards in August. At the share price of N132, the stock is currently under strong buy-side pressure.
5. Total Nigeria PLC:
Total Nigeria is the 5th oil and gas company in the stock market year-to-date in terms of performance. The company’s share price has climbed by 46% from the first trading day of the year to August 23, 2024.
In the second quarter of 2024, the company reported that it will pay members N25 in dividends, totaling N8.49 billion. Hence, market sentiment on the company’s stock gained steam in the second week of July 2024.
When buy-side pressure on the company’s stock returned during the trading week beginning June 9, 2024, the stock spiked by 31% to a share price of N563 in the third week of August 2024.
4. Eterna oil:
Eterna Oil is the 4th performing oil and gas company on the Nigerian stock market. The company’s share price has risen by 43% year-to-date since January 1, 2024.
After the period ending June 30, 2024, Eternaoil announced that second quarter revenue spiked by 112% year-over-year to N147 million, as gross profits climbed by 103%. This announcement raised market sentiment as the stock closed positively in June and July.
The company is currently trading at N19 per share in the stock market as it has recovered from a retracement that saw it fall to N12 in May.
3. Seplat Petroleum:
Seplat is the 3rd best-performing oil and gas company on the Nigerian stock market. As of the market’s opening on August 23, the company’s share price was up 63% year-to-date.
In the second quarter of 2024, shareholders of the company announced the payment of US 3 cents, or N47.13, as interim dividends to registered members, making it a 152% year-over-year increase compared to dividends paid in 2023.
This increased investor confidence and market volume as the company’s share price briefly crossed N4,000 on August 24, 2024, ascending by 9% from the previous week’s close before returning to N3,730 in the second week of August 2024.
2. Conoil:
Conoil is the 2nd best-performing oil and gas company in the Nigerian stock market. On a year-to-date basis, the company’s share price has climbed 71% as of August 23, 2024.
The company reported a 71% year-over-year spike in revenue for Q2 of 2024, along with a 13% rise in pre-tax profit. Also, shareholders of the company announced a N3.50 dividend payment, which climbed by 40% year-over-year to registered members.
Currently, Conoil is trading at N144 after ascending by 37% from the market close of N105 per share in June 2024.
1. Oando:
Oando is the best-performing company in the oil and gas sector. The company’s stock has surged by 341% year-to-date from January 1, 2024, to August 23, 2024, riding a very strong buy-trend.
In early August, the company announced its plan to complete a $783 million acquisition deal with Eni’s subsidiary, Nigeria Agip Oil Company.
The news brought positive sentiments to the company’s stock as it ended three consecutive months in the green, climbing by 91% already in the third week of August to close at N47.