INDUSTRY REVIEW: Best performing oil companies in Nigeria for Q3 2023

The oil and gas industry generated over N493.77 billion in revenue in the third quarter (Q3) of 2023, with Seplat closing the period as the best-performing company and TotalEnergies being the least-performing.

According to an analysis of the financial statements of five publicly listed companies, the industry increased its turnover by 87.79 percent year-on-year from N262.94 billion earned in Q3 2022.

The revenue reported is the group earnings of Seplat, Total, Eterna, MRS and Conoil.

Analysis by Ripples Nigeria showed the industry was able to cut down the impact of cost on turnover, with expenses gulping 72.07 percent of revenue in the third quarter this year, compared to 89.48 percent recorded in the same period last year.

The industry was able to limit the impact of expense on revenue through the 87.79 percent growth in turnover, with costs trailing behind at 51.25 percent.

Nevertheless, the total cost of sales recorded by the companies in the review period rose to N355.88 billion in Q3 2023, against the N235.30 billion spent on making their products and services available to their customers in the corresponding period last year.

Despite the 51.25 percent increase in the cost of sales, the industry’s net profit grew by 115.09 percent to N12.60 billion, settling above the N5.85 billion profit after tax reported in the 2022 third quarter.

What you need to know

• Seplat increased its market share by revenue to 8.42 percent in Q3 2023, up from the 1.96 percent it closed last year’s third quarter.

• Eterna improved its market share by revenue to 2.28 percent in this year’s third quarter, against the 1.72 percent held in Q3 last year.

• MRS’ market share by revenue rose from 1.31 percent in Q3 2022 to 1.74 percent in the review period.

• Conoil grew its market share by revenue to 2.14 percent in Q3 2023, compared to 1.69 percent in Q3 2022.

• TotalEnergies was unable to maintain or improve its market share, which dropped from 6.36 percent held in the third quarter of 2022 to 6.24 percent in Q3 this year.

Best performing oil & gas companies in Nigeria for Q3 2023

The best-performing oil companies list was determined by revenue growth.

Seplat – (+405.65%)

At the end of the third quarter of 2023, Seplat was the best-performing oil company after its turnover grew by 405.65 percent, representing N160.28 billion in revenue growth.

• The company generated N199.79 billion in revenue between July to September this year, compared to N39.51 billion earned in the corresponding period in 2022.

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• A review of the oil firm’s financial statement indicated that Seplat recorded the highest increase in costs, rising 170.16 percent, as it gulped N94.76 billion in Q3 2023, compared to N35.07 billion reported the previous year.

• However, the soaring costs didn’t stop Seplat from closing the quarter in review with a positive bottom line, recording N4.89 billion net profit, to exit the N1.58 billion loss reported in the same period in 2022.

Eterna – (+55.64%)

Eterna closed the third quarter of 2023 with a 55.64 percent growth in revenue – which placed the company in the second spot – having earned N54.03 billion in turnover, in comparison to the N34.71 billion generated the previous year’s Q3.

• During the review period, Eterna’s costs of sales trailed the growth in turnover closely, rising by 51.12 percent to settle at N49.31 billion, against the N32.63 billion spent in Q3 2022.

• Regardless, Eterna ended Q3 2023 with 547.46 percent growth in profit after tax, after recording N2.10 billion net profit, surpassing last year’s N325.03 million.

MRS – (+55.64%)

MRS tied with Eterna as the second-best performing oil company, as its revenue also grew by 55.64 percent, to end Q3 this year with N41.22 billion.

• This is an improvement from the N26.48 billion in turnover grossed in the corresponding period last year and also increased MRS’ market share by revenue from 1.31 percent to 1.74 percent.

• However, MRS couldn’t curb soaring costs, which outgrew revenue – as it rose by 63.36 percent from N24 billion in Q3 2023 to N39.20 billion recorded in this year’s third quarter.

• MRS went on to close this year’s third quarter with N1.13 billion profit after tax, which is a 161.32 percent increase compared to N433.22 million net profit posted the previous year’s Q3.

Conoil – (+49.04%)

Conoil recorded 49.04 percent growth in revenue after grossing N50.74 billion in the third quarter of 2023, surpassing the N34.04 billion recorded the same quarter the year before – as a result, Conoil settled on the fourth spot.

• Further review showed the company failed to curb costs, which gulped N45.70 billion in the review period, in contrast to the N30.27 billion posted in Q3 last year.

• But the 50.99 percent rise in cost was not enough to prevent Conoil from growing its bottom line by 116.68 percent, as the oil company improved the net profit to N2.43 billion in the third quarter this year, from N1.12 billion in 2022.

TotalEnergies – (+ 15.45%)

TotalEnergies recorded the lowest growth in revenue, managing to pull up its turnover by 15.45 percent — consequently, it ended in fifth position.

• The growth lifted TotalEnergies’ turnover for the quarter ending September 2023 to N147.97 billion, against the N128.17 billion generated in the same period last year.

• Interestingly, TotalEnergies also ended Q3 2023 with the lowest rise in cost of sales, after spending N126.88 billion to make its products and services available to its customers, compared to the N113.31 billion it gulped the previous year.

• However, TotalEnergies’ effort at curbing costs didn’t stop its bottom line from bleeding, as profit after tax depreciated by 48.87 percent to N2.03 billion in Q3 2023, compared to N3.97 billion net profit posted in Q3 2022.

By Enite Benjamin

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