Oil and Gas NIGERIA STOCKWATCH

The performance of the oil and gas sector is influenced by the price of crude in the international market and government position on oil subsidy. The sector recorded YTD of 25.98 percent.

SEPLAT

Seplat topped companies in the oil and gas space in capital gain, strengthening 36.71 percent in valuation in a generally bear market due to investors’ reaction to its impressive performance in the company’s Q1 2021 period. Revenue grew 17 percent year on year to $152 million helped by higher oil price and increase in the volume of gas. Contributing to the growth in revenue was improvement in operational expense which declined 43 percent, rise in oil revenue to $124 million due to recovery in price. Gross margin was up 35 percent from 25 percent in 2020O Operational profit climbed to $44 million from loss of $1.07 million.

Between April 21 and May 11, 2021, it gained 12.72 percent.

TOTAL

Like Seplat, Total defied the general weak market sentiment to gain 4.35 percent in four months, a development fuelled by the company’s financial position in 2021 Q1. Total grew revenue 8 percent to N66.7 billion. Net profit berthed at N3.0 billion following increase in the price of its lubricant segment. Fuel sale however declined 11 percent to N50.7 billion, leading to 17 percent rise in margin . Gross profit rose 48 percent to N11.5 billion.

ARDOVA

Ardova is smarting from its improved performance in the 2021 Q1.the company recorded growth in revenue from N176.55 billion to N181.66 billion. However, cost of sales rose from N165.26 billion to N169.55 billion . Ardova reported profit after tax of N2.06 billion.

Subsequently, nvestors extracted 8.04 percent return through capital appreciation between January and April. The capital gain is also the result of investors’ strategic entry in anticipation of good corporate earnings in 202.

11 PLC

Following decline in revenue from N54.27 billion 2020 Q1 to N46.65 billion and a marginal increase in profit after tax from N1.28 billion to N1.53 billion, 11 Plc lost 3.50 percent weight in price. This is in spite of the increase in profit which suggests that the company is coming out of its gradient decline in 2020 financial year. During this period, revenue fell to N165.90 billion from N191.67 billion. Profit after tax also declined to N6.32 billion from N8.88 billion. Consequently, EPS dropped to 1,728 kobo from 2,464 kobo.