Oil Companies Asset Rise To N1.637trn As Revenue Plunges 20.4% In 2020

Nigeria’s top oil and gas companies listed on the Nigerian Stock Exchange have seen their assets grow 22.38 per cent to N1.637trn from N1.34trn as Covid-19 takes its turn on their earnings.

The rise in assets by N299.59bn comes amidst the 2020 oil glut and the crash in oil prices to less than $20 per barrel in the first quarter of 2020.

But revenue for the big quoted oil firms in Africa’s largest oil producing nation fell by N184.4bn to N718.98bn in 2020 compared to the N903.38bn pulled by the five firms in 2019.

The companies include Seplat Petroleum Development Company Plc, Total Nigeria Plc, 11Plc, MRS Oil Nigeria Plc and Conoil Plc.

The pandemic hit most on their profit which shed N94.68bn in 2020 to settle at N12.57bn from N107.25bn

This represents a 753.1 per cent fall in profit for the firms last year due to the pandemic induced economic shock.

Apart from the pandemic, Nigeria’s inflation eroded “tiny margins” coupled with high operating cost, according to Total.

Apart from the huge decline in profit, only three oil companies made profit during the period, while two- Seplat and MRS posted a loss of N28.9bn and N2.26bn respectively amounting to a cumulative of  N31.16bn. This was up from the N1.6bn loss recorded in 2019 by MRS.

The companies are optimistic that the oil price rebound would improve its performance in 2021.

Nigeria’s biggest listed oil firm by asset, Seplat Petroleum, despite the N28.9bn loss grew its asset by N306.6bn to N1.31trn in 2020 from the N1trn worth of assets held in 2019.

Although the company’s revenue also fell to N190.9bn last year from the N214.2bn recorded in 2019, Seplat projected bigger business opportunities in 2021. Seplat is also expecting to invest $150m of capital expenditure in 2021.

Results posted by Total Nigeria shows an asset rose to N143.6bn in 2020 from N135bn in 2019.

Revenue   fell 30 per cent to N204.7bn from the N29217bn recorded in 2019, while the company’s profit plunged 9 per cent to N2.1bn from N2.28bn in 2019.

For 11 Plc, revenue declined 14 per cent to N1639bn in 2020 to N191.68, while profit fell 31 per cent to N8.99bn to N13.1bn.

But the company’s assets jumped N3.85bn to N143.6bn in 2020 from N135.03bn  assets in 2019.

MRS saw revenue sink by N23.59bn to N41.98bn in 2020 from the N65.57bn posted 2019. Apart from the N2.26bn loss recorded by the oil giant, the company’s asset fell to N36.7bn in 2020 from the N44.21bn asset of 2019.

Conoil also experienced a decline in revenue which fell 16 per cent to N117.5bn last year from the N139.8bn seen in 2019.

The pandemic also slashed the company’s profit by N452.94bn to N1.52bn from the N1.97bn recorded in 2019. Conoil’s total asset also slumped to N51.69bn from N63.58bn in 2019.

But with oil rebound which is currently at $64.86 per barrel, the companies are gradually on the road to recovery.

THE WHISTLER observed that during the first quarter of 2021 ending March, the oil and gas index which measures the performance of oil firms listed on the NSE shows a 17.8 per cent improvement in performance year to date.

Compared to the last quarter of 2020, the index improved 0.23 per cent, according to data on the NSE.