Prime Business AfricaAt the end of the first quarter of 2025, oil and gas investors in the Nigerian stock market lost a whopping N702.50 billion following a decline in the demand for shares in four companies.
Total Energies, Oando, Aradel Holdings, and MRS Oil accounted for the loss, which dragged the oil and gas index down by 252.46 basis points or -9.31 percent, from a 2,711.15 index to 2,458.69 index.
Join our WhatsApp ChannelAnalysis of the industry’s stock market performance showed that out of seven oil and gas companies listed, only Eterna recorded growth in the value of shareholders’ investment, while Seplat shareholders did not record any gain or loss.
How the companies performed in Q1 2025
Oando
Oando shareholders recorded the highest decline in the value of investment, as it fell by 26.51 percent, representing a loss of N216.92 billion between January and March.
Prime Business Africa noted that the oil company’s share price had plummeted during the reviewed period, from N65.80 to N48.35 – leading to the loss recorded by Oando’s investors.
The decline pushed Oando’s market valuation down to N601.05 billion at the end of the quarter in review, from N817.98 billion the company was valued in the bourse at the start of the year.
MRS Oil
Within the reviewed period, MRS Oil shareholders lost 19.69 percent or N14.7 billion in the value of their investment in the oil company, after the shares of the firm plunged to N174.90 per share from N217.80.
Consequently, the stock market capitalisation of MRS Oil declined to N59.97 billion on March 28 from N74.68 billion on January 2.
Aradel Holdings
After the company’s share price dropped to N500 at the end of March from the N598 it was sold at the start of the quarter, Aradel Holdings’ shareholders lost N425.79 billion in their investment value.
The shareholders’ investment value declined by 16.38 percent, dragging down Aradel Holdings’ market valuation to NN2.17 trillion from N2.59 trillion within three months.
Conoil
Conoil shareholders ended the first quarter with a N38.86 billion loss, which represents a 14.46 percent decline in their investment value, after low demand sent the company’s stock price rolling down.
On January 2, the shares of Conoil were sold in the stock market at N387.20 per share, however, with a decline in stock market investors’ confidence in the company, the share price fell to N331.20 by March 28.
As a result, the oil company’s market valuation dwindled from N268.69 billion to N229.83 billion, according to Prime Business Africa’s analysis.
Total Energies
Total Energies’ shareholders also suffered a loss during the reviewed period, as their investment value fell by 2.62 percent – the lowest decline recorded by listed oil companies.
The decline represents a combined loss of N6.21 billion in investment value, driven by the drop in the price of Total Energies’ shares, which was sold at N698 per share at the start of the year but was offered at N679.70 kobo at the end of Q1.
Consequently, Total Energies’ market valuation dropped to N230.77 billion, compared to N236.98 billion recorded at the start of Q1.
Eterna
Eterna’s shareholders didn’t share the same fate as its market rival, as the company’s shareholders saw an increase of 47.53 percent in the value of their investment.
The shareholders gained N3.51 billion within three months after high demand for the company’s shares pushed the price up from N24.30 per share to N35.85.
This raised Eterna’s market valuation to N10.90 billion from N7.39 billion.
According to Charles Abuede, Research Lead at Cowry Asset Management Limited, the decline experienced by the oil and gas companies could be due to various factors, including volatility in the global oil market and weak topline and bottom-line growth.
“Recent sell pressure witnessed in oil and gas stocks on the exchange has been driven by a myriad of factors, including the volatility in the global oil market,” Abuede said.
“From the published corporate scorecard for 2024, we saw weak topline and bottom line growth owing to unstable production volumes, high operational costs and FX-related impairments.
“The above, coupled with the sharp fall in oil price to below $70/bbl, have roused negative investor sentiments, thereby leading to sell-offs.
“This, in turn, impacted their share price, where we saw some negative price movements from profit-taking activities. Finally, the declaration of a state of emergency in Rivers state- Nigeria’s key oil producing subnational raised some concerns and further widened the volatility.”
For press releases, tip-off, and corporate information, call 08149575257 (hotline)
Email: publisher@primebusiness.africa and editor@primebusiness.africa
