In Nigeria’s upstream oil sector, three major players; Seplat Energy, Oando Plc, and Aradel Holdings Plc dominated headlines in 2024.
Each company generated significant revenue from the exploration and sale of crude oil and refined products.
But when it comes to investor value, their performance varied widely.
So, which company truly gave investors the best bang for their buck in 2024?
In terms of total shareholders’ return, Oando Plc recorded a total shareholder return (TSR) of 528.5%, driven entirely by a sharp rise in its share price.
Seplat Energy followed with a strong TSR of 158.19%, combining steady capital gains and a generous N150.92 billion dividend payout.
Aradel Holdings, despite robust earnings and a N130.35 billion dividend, posted a negative TSR of -23.41% due to a steep decline in share price during the period under review.
Looking beyond returns, enterprise value, which captures the full size of a company by combining its market capitalization with debt, offers further context.
Seplat led with an EV of N3.25 trillion, highlighting its dominant market position. Oando trailed closely at N3.20 trillion, while Aradel, despite strong operational fundamentals, had a lower EV of N1.86 trillion.
Still, value is not just about size. A closer look at how each company performed for investors in 2024 tells a deeper story, starting with Aradel.
Aradel Holdings
Aradel Holdings Plc delivered total shareholder return of -23.41% in 2024, driven by a sharp decline in its share price, despite returning N130.35 billion to investors in dividends
In simple terms, the company made good money, but the market did not reward it.
Still, Aradel remains a solid player. Its total business value known as enterprise value (EV) stood at N1.86 trillion, reflecting its strong position in the industry, even though it trails Seplat and Oando.
On the revenue side, in 2024 revenue doubled to N581 billion in 2024, and it’s off to a strong start in 2025, already earning N199.9 billion in Q1 alone.
When you compare enterprise value to revenue, you get a ratio of about 3.2x. This means investors are valuing the entire company at a little over three times its annual revenue
Profits tell an even better story. Pre-tax profit jumped 182% to N316.8 billion, while net profit rose nearly five times to N259 billion in 2024. The momentum continued in Q1 2025, with N61.2 billion in pre-tax profit and N34.2 billion after tax.
Apart from the accounting profit, Aradel generated the highest operating cash flow yield of 14.27%. This shows Aradel is quietly delivering strong value, even if the market has not caught on yet.
Seplat Energy
Seplat posted a 158.15% total shareholder return in 2024, driven by a combination of N154.92 billion in dividend payments and share price appreciation.
Notably, Seplat stands out as the only company among the three that pays quarterly dividends, making it especially attractive to long-term, income-focused investors.
The company’s enterprise value stood at N3.25 trillion, the highest among its peers. With N1.65 trillion in revenue in 2024, Seplat trades at an EV-to-revenue multiple of about 1.97x, a relatively premium valuation.
Revenue rose by 137% YoY to N1.65 trillion in 2024 and surged 357% YoY to N1.2 trillion in Q1 2025, already 74% of the prior year’s total. PBT grew 347% to N561.42 billion in 2024 and reached N314.65 billion in Q1 2025.
However, high tax expenses of N347.18 billion in 2024 and N279.28 billion in Q1 2025 significantly reduced PAT.
Aside from the tax hit, Seplat reported an operating cash flow per share of N779.53, which means for every share owned, the company generated N779.53 in actual cash from its operations. This is a direct measure of how much real cash the business is producing.
Based on its share price of N5,588.90, this gives a cash flow yield of 13.95%.
This yield shows how much cash the company generates relative to its market value, like a dividend yield, but based on operating cash.
A 13.95% yield is quite high, indicating that Seplat is producing strong cash flow.
Oando Plc
Oando Plc posted a market-leading TSR of 528.57% in 2024, primarily driven by a steep rally in its share price.
Its enterprise value stood at N3.20 trillion, second only to Seplat, while revenue surged to N4.11 trillion, giving it an EV-to-revenue multiple of 0.78x.
This low multiple may suggest undervaluation or a turnaround story, making the stock attractive to growth-oriented investors.
However, profitability tells a mixed story: while PAT rose 8.65% to N65.49 billion, PBT declined sharply by 54% to N47.78 billion, likely due to deferred tax gains.
Cash flow from operations was negative, with an operating cash flow per share of -N43.88, translating to a cash flow yield of -84.39%. This suggests Oando is not yet generating real cash from its operations.
In short, while the market rewarded Oando for its perceived turnaround or future potential, its underlying cash flow position signals more work ahead.
