Nigerian Oil Companies with Highest Profits in 9 Months, Seplat Leads

• About six Nigerian oil companies posted impressive financials in the first nine months of this year
• The companies include Seplat, TotalEnergies, MRS Oil, Eterna Oil, Aradel and Conoil
• The companies’ profit before tax hit N464.6 billion from 133 billion recorded last, representing an 184% rise

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Despite security issues, six oil firms in Nigeria posted a combined profit of N626.6 billion in their nine-month operations.

The firms include Seplat, TotalEnergies, Conoil, MRS, and Eterna Oil, which achieved N629.6 billion profit before tax in the first three quarters of this year.

The oil companies’ profits spiked by 184%

The amount represents an 184% spike from the N133 billion recorded in the same period in 2023.

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The companies’ financial statements disclosed that they could pull through market challenges to achieve their profits.

The oil firms also grew their earnings after tax by N215.6 billion in their nine months of operations, from N64.7 billion in the same period in 2023.

A breakdown of the top performers

Seplat recorded a 483% rise in profit before tax to N366 billion from 62 billion, while TotalEnergies announced a 151% increase in profit before tax from N41 billion.

Conoil’s profit before tax increased to N14 billion, representing 30.6%, while MRS rose 89% to N9.3 billion from N4.9 billion recorded the previous day.

Also, the recently listed Aradel and Eterna Oil achieved a 412%  and 149% increase in profit before tax from N37 billion and N2.1 billion to N191.5 billion and N5.3 billion, respectively.

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The improved achievement in the companies’ operations may be due to the rise in petrol, diesel and lubricant prices.

The oil sector emerges best-performing

The development also catapulted the oil and gas index to return over 121% yearly gain to investors as of the November 1, 2024 closing.

The Guardian reports that the Nigerian Exchange Limited (NGX) data shows that the oil sector’s index is currently rated the best-performing in 2024, exceeding five other indices regarding return on investment.

Oil marketers import N833 billion in fuel

Nigeria’s prominent oil marketers have benefited from the country’s subsidy removal on petroleum products.

The change has allowed marketers to operate in a more market-driven environment, leading to more financial gains.

Subsidy removal leads to increasing gains for marketers

In the first nine months of 2024, four prominent oil marketers reported a vast revenue gain, earning about N1.3 trillion from selling petroleum products to Nigerians.

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Despite the vast fuel import costs, the oil firms spent N833.86 billion importing petroleum products within the period, increasing their gross profit on petrol sales to N465.92 billion.

3 bil billionaires’ firms sue Dangote Refinery

Legit.ng earlier reported that on Wednesday, November 6, 2024, three prominent oil marketers in Nigeria asked the Federal High Court in Abuja to stop Dangote Refinery's plot to take over the energy sector. The marketers are AYM Shafa Limited, A.A. Rano Limited, and Matrix Petroleum Services Limited.

They maintained that allowing the mega refinery to control Nigeria's oil sector would be detrimental to the country.

However, the oil marketers filed the suit in reply to challenge the competence of the suit the refinery filed to annul the licenses they secured to import petroleum products into Nigeria.

Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng

Source: Legit.ng