Oil & Gas Sector Drags NGX Down in H1 2025
Here’s a breakdown of the story:
Sector Under Pressure
The NGX Oil & Gas Index dropped 10.12% in the first half of 2025, making it the only major index to decline while the All‑Share Index gained a strong 16.57% over the same period .
Performance Snapshot
• Eterna and TotalEnergies were the rare outperformers, with Eterna surging nearly 77% and TotalEnergies making modest gains ().
• In contrast, Conoil plunged ~39%, MRS fell ~28%, Aradel dropped 14%, Oando was down ~17%, and Seplat declined ~4% .
What’s Fueling the Decline?
• Lags in filing 2024 audited results caused uncertainty, prompting cautious investor sentiment .
• Profit-taking followed bonus share announcements—particularly from Oando—led to sharp sell-offs .
• Volatility in global oil prices, partly due to shifts in U.S. policy, discouraged investors ().
Expert Insights
• ISAN’s Moses Igbrude highlighted delayed reporting and dividend declarations as key reasons behind the index’s poor showing .
• David Adnori (Highcap Securities) pointed to disappointing earnings from Aradel and TotalEnergies’ weak Q4 results as reasons for investor withdrawal .
• Aruna Kebira (Globalview Capital) noted that aggressive bonus payouts by Oando triggered profit-taking, while investors fear dividends won’t match current prices .
Why It Matters
• This decline contrasts sharply with consumer goods, banking, and insurance sectors, which all posted gains in H1—showing investor preference for more stable, dividend-paying stocks over volatile oil & gas counters .
• For investors, it signals a need for caution: look out for timely financial reporting, dividend consistency, and oil price trends before diving into oil & gas stocks.
In summary:
The Oil & Gas segment faces investor scrutiny due to delayed financials, lacklustre earnings, and profit-taking linked to bonus issues. Meanwhile, broader market confidence continues, with investors shifting focus to more transparent and reliably profitable sectors.
Here’s a breakdown of the story:
Sector Under Pressure
The NGX Oil & Gas Index dropped 10.12% in the first half of 2025, making it the only major index to decline while the All‑Share Index gained a strong 16.57% over the same period .
Performance Snapshot
• Eterna and TotalEnergies were the rare outperformers, with Eterna surging nearly 77% and TotalEnergies making modest gains ().
• In contrast, Conoil plunged ~39%, MRS fell ~28%, Aradel dropped 14%, Oando was down ~17%, and Seplat declined ~4% .
What’s Fueling the Decline?
• Lags in filing 2024 audited results caused uncertainty, prompting cautious investor sentiment .
• Profit-taking followed bonus share announcements—particularly from Oando—led to sharp sell-offs .
• Volatility in global oil prices, partly due to shifts in U.S. policy, discouraged investors ().
Expert Insights
• ISAN’s Moses Igbrude highlighted delayed reporting and dividend declarations as key reasons behind the index’s poor showing .
• David Adnori (Highcap Securities) pointed to disappointing earnings from Aradel and TotalEnergies’ weak Q4 results as reasons for investor withdrawal .
• Aruna Kebira (Globalview Capital) noted that aggressive bonus payouts by Oando triggered profit-taking, while investors fear dividends won’t match current prices .
Why It Matters
• This decline contrasts sharply with consumer goods, banking, and insurance sectors, which all posted gains in H1—showing investor preference for more stable, dividend-paying stocks over volatile oil & gas counters .
• For investors, it signals a need for caution: look out for timely financial reporting, dividend consistency, and oil price trends before diving into oil & gas stocks.
In summary:
The Oil & Gas segment faces investor scrutiny due to delayed financials, lacklustre earnings, and profit-taking linked to bonus issues. Meanwhile, broader market confidence continues, with investors shifting focus to more transparent and reliably profitable sectors.