Oil & Gas Boom: NGX Index Leads with 157.56% YtD Growth
The Oil & Gas sector has emerged as the best-performing index on the Nigerian Exchange (NGX) in 2024, outpacing other sectors like Banking and Consumer Goods. The sector’s performance has been fueled by significant federal government reforms, including the removal of petroleum subsidies and the implementation of the Petroleum Industry Act (PIA).
Key Highlights
1. Outstanding Returns:
• The NGX Oil & Gas Index recorded an impressive 157.56% Year-to-Date (YtD) return as of December 13, 2024.
• This surpasses the overall NGX market return of 32.9% for the same period.
2. Top Performers:
• Conoil Plc: Stock price surged by 361.5%, closing at ₦387.20 per share.
• Seplat Energy Plc: Gained 147%, closing at ₦5,700 per share.
• Oando Plc: Skyrocketed by 556.2%, ending the year at ₦68.90 per share.
3. Corporate Earnings Soar :
• Six listed oil & gas companies generated an estimated ₦626.3 billion in profit before tax for the first nine months of 2024, a staggering 384% increase from ₦129.43 billion in 2023.
• Seplat Energy Plc led with ₦366.7 billion profit before tax, marking a 483.4% increase.
• Revenue for these companies hit ₦2.97 trillion, up 115% from 2023.
4. Impact of FG Reforms:
• Key reforms, including the deregulation of the downstream sector and gas infrastructure development, have boosted operational efficiency, transparency, and investment in the sector.
• The average retail price of Premium Motor Spirit (PMS) rose by 64.55% in 2024, contributing to increased revenue.
Analyst Insights
Experts attribute this growth to higher-margin crude oil products and improved business activities. They urge investors to consider companies with strong fundamentals as the reforms continue to drive profitability.
With this stellar performance, the Oil & Gas sector is well-positioned to remain a top choice for investors in 2024 and beyond. ✨
The Oil & Gas sector has emerged as the best-performing index on the Nigerian Exchange (NGX) in 2024, outpacing other sectors like Banking and Consumer Goods. The sector’s performance has been fueled by significant federal government reforms, including the removal of petroleum subsidies and the implementation of the Petroleum Industry Act (PIA).
Key Highlights
1. Outstanding Returns:
• The NGX Oil & Gas Index recorded an impressive 157.56% Year-to-Date (YtD) return as of December 13, 2024.
• This surpasses the overall NGX market return of 32.9% for the same period.
2. Top Performers:
• Conoil Plc: Stock price surged by 361.5%, closing at ₦387.20 per share.
• Seplat Energy Plc: Gained 147%, closing at ₦5,700 per share.
• Oando Plc: Skyrocketed by 556.2%, ending the year at ₦68.90 per share.
3. Corporate Earnings Soar :
• Six listed oil & gas companies generated an estimated ₦626.3 billion in profit before tax for the first nine months of 2024, a staggering 384% increase from ₦129.43 billion in 2023.
• Seplat Energy Plc led with ₦366.7 billion profit before tax, marking a 483.4% increase.
• Revenue for these companies hit ₦2.97 trillion, up 115% from 2023.
4. Impact of FG Reforms:
• Key reforms, including the deregulation of the downstream sector and gas infrastructure development, have boosted operational efficiency, transparency, and investment in the sector.
• The average retail price of Premium Motor Spirit (PMS) rose by 64.55% in 2024, contributing to increased revenue.
Analyst Insights
Experts attribute this growth to higher-margin crude oil products and improved business activities. They urge investors to consider companies with strong fundamentals as the reforms continue to drive profitability.
With this stellar performance, the Oil & Gas sector is well-positioned to remain a top choice for investors in 2024 and beyond. ✨