Despite sustained macroeconomic headwinds, four oil firms have posted a combined profit of N386.7 billion for the financial year ending December 31, 2024.
The four firms – Conoil, MRS, Total Energies and Aradel – achieved N386.7 billion profit before tax (PBT) in the fourth quarter financial statements ending on December 31.
The value represents a 162.04 per cent increase from N147.6 billion recorded in the corresponding period in 2023. According to their financials, the firms were able to navigate both corporate and market challenges to grow their profits.
The companies also grew their profit after tax (PAT) to N292.6 billion, up from N80 billion achieved in the same period of 2023, representing a 265.7 per cent increase.
Conoil’s financial statement for the period showed a 12.45 per cent increase in PBT to N13.8 billion from N12.2 billion while MRS announced a 63.3 per cent rise in PBT, from N5.9 billion to N9.7 billion.
Total Energies’ PBT rose from N17.5 billion to N42.2 billion, representing an increase of 140.4 per cent. Also in the same period, Aradel achieved a 186.7 per cent rise in PBT, from N112 billion to N321 billion.
The oil and gas index returned a 170 per cent gain last year, positioning the sector as best performing among the five sectors in 2024. The index had been on a downturn, recording negative returns to shareholders. For instance, in 2018, the NGX oil and gas declined by 8.61 per cent. This indicates that, on average, investors in this sector experienced a negative return of 8.61 per cent for the year.
Similarly, the sector declined by 14.6 per cent in 2019. Also, in 2020 and 2021, the index recorded a loss of 13.03 per cent and 8.73 per cent. However, the sector regained momentum last year, recording an unprecedented gain, surpassing the performance of the all-share index (ASI) and other four indices in 2024.
Shareholders said the exceptional performance has underscored the sector’s resilience amidst economic reforms and global market turmoil.
President of the Independent Shareholders Association of Nigeria, Moses Igbrude, said these four firms have displayed resilience despite the current macroeconomic challenges. He expressed optimism that the full-year audited result would culminate in a bumper harvest and robust dividend payout for shareholders.
“As a shareholder I am impressed and we are expecting a good dividend from them this year,” he said. Igbrude urged the government to sustain ongoing reforms in the sector aimed at boosting local content to attract more investment and improve operational efficiency.
“The operators in the industry also need to pay attention to global events that affect oil prices, while some tensions can cause price swings, finding solutions can help stabilise the market,” he said.
The improved performance in Nigeria’s oil and gas sector can be attributed to efforts by the federal government to curb oil theft and pipeline vandalism, leading to improved production.
