Prime Business Africa
Shareholders of Eterna Plc, Oando Plc, Conoil, Total Nigeria and Seplat Petroleum ended the third quarter (Q3) with significant losses, compared to those of Aradel Holdings on the Nigerian Exchange (NGX) Limited.
However, despite five out of six oil companies’ stocks declining between July and September, the total market capitalisation of the industry increased by 3.49 percent or N232.54 billion — thanks to Aradel Holdings.
Join our WhatsApp ChannelAccording to Prime Business Africa’s (PBA) analysis, the total market valuation of the oil industry increased from N6.64 trillion recorded on July 1 to N6.87 trillion on September 30.
Worst-Performing Oil Companies
Eterna Plc
On July 1, Eterna’s share was priced at N43 per share, however, the value depreciated to N33.70 kobo — indicating a pessimistic outlook on the company’s profitability among investors in the stock market.
- With the company’s share price declining by N9.3 kobo, the investment value of Eterna’s shareholders depreciated by 21.62 percent, making the firm’s share the worst-performing oil company stock, according to Prime Business Africa’s analysis.
- This represents a N12.12 billion loss for shareholders of the oil company, and the bearish run also led to a decline in Eterna’s NGX valuation, which dropped from N56.07 billion to N43.94 billion.
Oando Plc
Oando is the second-worst-performing oil company stock on the NGX after the firm’s shareholders recorded a 16.28 percent decline in their investment value.
- The decline in Oando shareholders’ investments represents a loss of N111.26 billion, and also pulled down the market capitalisation of the company from N683.10 billion on July 1 to N571.84 billion.
- Stock market data showed that the decline was on the back of equity investors pricing Oando’s share at N46 at the end of September, below the N54.95 kobo it traded at the beginning of the third quarter — indicating a N8.95 kobo decrease.
Conoil
Shareholders of Conoil closed the third quarter with a 9.97 percent decline in their investment value, representing a N16.23 billion loss, and making the company the third on the list of the worst-performing oil firms’ shares.
- PBA gathered that the shareholders’ loss was driven by the N23.4 kobo decline in the company’s share price, which started July with N234.50 kobo, but closed September with N211.10 kobo.
- The drop in the share price, which reflects a decline in investor confidence towards Conoil’s growth prospects, also affected the company’s valuation, as it fell from N162.73 billion to N146.49 billion.
Total Nigeria
Total Nigeria’s share price had nosedived by N65 within three months, from N705 to N640, wiping off 9.21 percent from its shareholders’ investment value.
- While the decline in investment value cost the shareholders a combined loss of N22.06 billion between July and September, it also placed Total in the fourth spot of the worst-performing oil companies’ stocks.
- In addition, PBA’s analysis showed that Total’s market valuation also suffered from the price depreciation, as the company’s capitalisation fell from N239.36 billion to N217.29 billion during the reviewed period.
Seplat Petroleum
Seplat Petroleum also ended up on the list as the fifth worst-performing stock among oil companies on NGX, as shareholders saw a 1.29 percent decrease in their investment value during the
- While the drop is marginal, it represents a combined loss of N42.41 billion for the shareholders, and it was also enough to reduce Seplat’s market valuation from N3.26 trillion to N3.22 trillion.
- According to market data, the losses were as a result of Seplat’s share price depreciating during the period under review, from N5,450 to N5,379.30 kobo, indicating the asset’s value decreased by N70.7 kobo.
Best-Performing Oil Company Stock
Aradel Holdings
Aradel Holdings’ shareholders closed the third quarter with a 19.53 percent appreciation in their investment value following a N100.5 kobo increase in the company’s share price.
- The increase indicates Aradel Holdings was the most sought-after oil company stock on the NGX, and the shareholders profited a whopping N436.65 billion combined gain from the strong demand.
- Prime Business Africa also noted that Aradel Holdings’ brand value in the stock market also skyrocketed, as the company’s valuation on the NGX increased from N2.23 trillion to N2.67 trillion.
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