H1: At -10.12%YtD, Oil & Gas Index Emerges Worst Performing Indicator on NGX

The Nigerian Exchange Limited (NGX) Oil & Gas Index depreciated by 10.12 per cent in its half year (H1) 2025 performance, becoming the only index remain south amid the NGX All-Share Index advancing by 16.57 per cent in H1 2025.

As the NGX All-Share Index advanced to 119,978.57 basis points in H1 2025, about 16.57 per cent increase from 102,926.40 basis points it opened for trading. The Oil & Gas index opened this year at 2,712.06 basis point, about 10.12 per cent YtD decline to close June 30, 2025 at 2,437.47 basis points.

On the flipside, the NGX Consumer Goods Index gained 52.21 per cent YtD to lead others as the best performing index, attributable to reforms by the federal government.

A review of stocks that constitute the NGX Oil & Gas index showed that TotalEnergies Marketing Nigeria Plc and EternPlc, out of seven listed OIl & Gas companies appreciated in stock price.

For instance, the stock price of Eterna closed June 30, 2025 at N43 per share, gaining 76.95 per cent YtD from N24.30 per share it closed for trading in 2024. On the other hand, TotalEnergies Marketing Nigeria advanced by 1 per cent to close June 30, 2025 at N705.00 per share from N698.00 per share it closed for trading in 2024.

In the period under review, the stock price of Conoil recorded the highest decline by percentage points, dropping by 39.44 per cent YtD to close June 30,2025 at N234.50 per share from N387.2 per share it closed for trading in 2024.

This was followed by MRS Nigeria with a decline of 28.42 per cent to close June 30, 2025 at N155.90 per share from N217.80 the stock opened for trading this year.

Aradel Holdings’stock price plunged by 13.96 per cent to close N514.50 per share as of June 30, 2025 from N598.00 per share it closed for trading in 2024.

While the stock price of Oando dipped by 16.74 per cent to N54.95 per share, Seplat Energy Plc’s shares declined by 4.39 per cent to close June 30, 2025 at N5,450.00 per share.

Analysts attribute the performance of the sector to late filing of 2024 result and accounts and declaring dividend payout to investors.

Speaking, the National Coordinator Independent Shareholders Association Of Nigeria (ISAN). Mr. Moses Igbrude, attributed the NGX Oil & Gas -.10.12 per cent YtD performance to late filing of 2024 audited result and declaration of dividend payout.

He noted unstable global oil prices over President Donald Trump policies has sent a signal to investors to trade the OIl& gas stocks with caution.

He added the current dwindling performance in the Oil & gas sector on the NGX is a reflection of price correction.

On his part, the Vice President, Highcap Securities Limited, Mr. David Adnori, said, “The OIl & Gas sector was propelled in recent times by Oando.

“However, since the beginning of the year, Oando and AradelHoldings have taken a serious beating. Totalenergies also lost momentum as the released 2024 unaudited result and accounts was not impressive, leading to investors pulling out.

“The NGX Oil & Gas Index performance has to do with listed companies not with the industry itself. Investors’ confidence around Oando dropped and Aradel Holdings could not sustain the high tempo which it migrated from NASA to NGX. Totalenergies did not perform well in the fourth quarter of 2024. All these have impacted on the NGX Oil & Gas Index in its YtD performance, “ he added.

But the Managing Director, Globalview Capital Limited, Mr. Aruna Kebira, attributed the downward movement in the NGX Oil & Gas index to profit-taking in Oando, among other stocks.

He said, “The management of Oando proposed a bonus of one new ordinary share for every 12 existing ordinary shares and other listed companies’ bonuses have a terminal date of 90 days. The management put a bonus for three years, which is to be credited for 36 months. Investors felt the management of Oando was taking them for granted and opted to take profit.”

He added that the poor performance in the NGX Oil & Gas is based on investors’ sentiment that Conoil, among others may declare a dividend that is not commensurate with their 52-week high.

“Investors believed that the dividend they are expecting from listed Oil & Gas companies cannot be commensurate with their prices. So they are exiting ahead of the dividend payout. Investors can exit quietly now when the dividends are not declared. When the dividends are declared and it is worse, a lot of investors will want to sell immediately, which is the worst, ” he added.