Despite sustained macroeconomic headwinds, Conoil, MRS, Total Energies and Aradel posted a combined profit before tax (PBT) of N386.7 billion for the financial year ending December 31, 2024.
The figure represents a 162.04% increase from the N147.6 billion recorded in the corresponding period of 2023.
Financial statements released by the companies indicate that despite operating challenges, the firms navigated market uncertainties, expanded operational efficiencies and leveraged industry reforms to drive significant earnings growth.
Further analysis of their financial statements shows that profit after tax (PAT) surged by 265.7% to N292.6 billion from N80 billion recorded in the previous year.
Performance Breakdown
Conoil reported a 12.45% increase in PBT from N12.2 billion to N13.8 billion. MRS posted a 63.3% jump with PBT growing from N5.9 billion to N9.7 billion.
Total Energies recorded a 140.4% surge with PBT climbing from N17.5 billion to N42.2 billion.
Aradel led the sector with a 186.7% increase, as its PBT advanced from N112 billion to N321 billion in the same period.
The oil and gas index outperformed all other market sectors in 2024, posting a 170% gain, reversing previous losses. The sector had recorded negative returns for four consecutive years, including declines of 8.61% in 2018, 14.6% in 2019, 13.03% in 2020, and 8.73% in 2021.
Shareholders Express Confidence
The President of the Independent Shareholders Association of Nigeria, Moses Igbrude, described the remarkable performance as a reflection of the sector’s resilience in the face of economic reforms and global market fluctuations.
“As a shareholder, I am impressed, and we are expecting a good dividend from them this year,” he said.
Igbrude further called on the government to sustain ongoing reforms to enhance local content and attract more investments into the sector.
“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 stabilize the market,” he added.
Government Interventions Support Growth
Analysts attribute the improved performance of the oil sector to federal government initiatives aimed at curbing oil theft and pipeline vandalism, which have boosted crude production.
Market watchers also point to improved regulatory frameworks, enhanced security measures and strategic capital investments as key drivers of the sector’s resurgence.
With the sector’s strong rebound, investors are optimistic that the full-year audited results will translate into robust dividend payouts and further strengthening market confidence.
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