Nigeria: Who Dominates the Oil and Gas Sector in 2024?

The year 2024 saw exceptional momentum on the Nigerian stock market, with a spectacular performance by the oil and gas sector. With an unprecedented 160% increase in the value of its index, this sector eclipsed the others, notably insurance (+123.15%), and established itself as the engine of growth for the stock market economy. Here's a look back at the highlights and the key players behind this success.

The NSE Oil and Gas index began the year at 1,043.60 points, showing steady growth despite one-off setbacks in March and April. The sector ended 10 of the 12 months on a positive note, demonstrating strong resilience and an ability to attract investors through solid performance and bold strategies.

Five companies stood out for their exceptional performance, attracting the attention of investors and consolidating their market position.

1. Oando (528.57 %) : The undisputed leader
Oando recorded a meteoric rise from 10.50 naira at the start of the year to 66 naira in December, a spectacular increase of 528.57%. This increase is mainly attributable to the strategic acquisition of Nigeria Agip Oil Company for 783 million dollars. This deal took Oando's market capitalisation to 1,000 billion naira, strengthening its portfolio and boosting investor confidence.

2. Conoil Plc (361.50%): Sustained growth
Conoil Plc also shone, rising an impressive 361.50%. The company started the year at 83.90 naira and reached 387.20 naira in December, thanks to a 99% increase in its after-tax profit in 2023. This financial strength has consolidated its position as the second best performing oil and gas company.

3. Seplat Energy (146.75%): Strategic expansion
Seplat Energy recorded a significant increase of 146.75%, supported by strategic decisions such as the acquisition of 22,571 shares by its Chairman, Udo Udoma. These strategic moves saw Seplat's share price rise from N2,310 to N5,700 in December, enhancing its reputation in the market.

4. MRS Oil Nigeria Plc (107.43%): A breakthrough at the end of the year
MRS Oil posted an impressive 107.43% growth to N217.80 in December. This was attributed to a 108.9% rise in pre-tax profit and a 141.90% increase in turnover, fuelled by the sale of premium fuels.

5. Total Energies Marketing Nigeria Plc (81.30%): A solid recovery
Despite a difficult start to the year, Total Energies Marketing Nigeria Plc rebounded to close at N698 in December, an increase of 81.30%. This performance was underpinned by a 95% rise in pre-tax profit to N13.73 billion, consolidating its position as one of the industry's leaders.

The exceptional performance of the oil and gas sector in 2024 testifies to its strategic role in the Nigerian economy. With increased investment and renewed investor confidence, the sector looks well positioned to continue its momentum into 2025, despite the potential challenges of fluctuating oil prices and global economic uncertainties.

The oil and gas sector not only dominated the Nigerian stock market in 2024, but also laid the foundations for sustainable growth. Driven by bold strategies and solid fundamentals, key companies demonstrated their ability to overcome obstacles and maximise opportunities, making 2024 a memorable year for Nigeria's stock market economy.