Why Conoil, Oando, 3 Others Are Worst-Performing Oil Stocks on NGX

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With a 36.55 per cent year-to-date (YTD) return of the All-Share Index as of September 12, the Nigerian stock market seems to have appreciated significantly since the beginning of this year.

The boom is the result of an N26.16 trillion gain to investors as the market capitalisation rose from N62.763 trillion on January 2, when the market opened, to N88.922 trillion as of September 12.

Amid the boom in the stock market, the oil and gas sector seems to be performing as the worst sectoral index on the Nigerian Exchange Limited (NGX).

The index has experienced a 10.79% year-to-date (YTD) decline, starting the year at 2,712.06 basis points and dropping to 2,419.33 basis points by September 12.

In the oil and gas sector, Conoil, Oando, Aradel Holdings, Seplat Energy, and TotalEnergies Marketing Nigeria are among the top performers on the losers’ table, significantly contributing to the downturn.

Notable decline in share prices

The share prices of these companies on the NGX have significantly left the oil and gas sector’s YtD return negative at 10.79 per cent.

Conoil’s share price has declined by 45.48 per cent to N211.10 as of September 12, from N387.2 as of the beginning of this year.

Oando followed the losing streak with a sharp drop of 27.27 per cent to N48.00 from N66, its share price, when the market opened this year.

Aradel Holdings’ share price has also lost 8.86 per cent to N545 from N598.

While TotalEnergies’ share price has suffered an 8.31 per cent loss to N640 from N698, Seplat Energy’s share price has declined by 5.63 per cent to N5,379.30 from N5,700 per share.

Analysts suggest that the poor performance of oil and gas stocks on the Nigerian Stock Exchange (NGX) can be largely attributed to the volatility of global oil prices. Additionally, they point to the policies of former U.S. President Donald Trump, which have sent mixed signals to investors, urging them to approach oil and gas stocks with increased caution.

Pinnacle Daily can report that since coming back to power on January 20 this year, US President Donald Trump has deliberately threatened American allies and trade partners, leaving the US more isolated on the world stage.

His sweeping tariffs against many countries, a case in point being his 15 per cent import tariff on Nigeria, have widely been criticised by global trade organisations, including the International Monetary Fund (IMF) and the World Trade Organisation (WTO), which see it as posing a significant risk to the global economy.

At the beginning of the year, Oando and Aradel Holdings have taken a serious beating with a notable profit-taking in Oando’s shares.

The delayed submission of their 2024 unaudited results, coupled with an underwhelming financial performance, further prompted investors to divest from their shares.

Waned financial performances

A review of the first half unaudited financial statements of these companies revealed the unimpressive performances, pulling investors’ sentiment away from their shares.

In its first half results, TotalEnergies reported a loss after tax of N2.86 billion from a N20.57 billion profit after tax in the same period last year. It, however, maintained a positive net asset of N58.64 billion, as its total assets of N449.47 billion exceeded its total liabilities.

For Conoil, the company’s profit after tax declined significantly from ₦8.02 billion in June 2024 to ₦900.42 million in June 2025. But it sustained a positive financial position with net assets of ₦40.39 billion after deducting its liabilities from total assets of ₦117.56 billion.

Seplat Energy also reported a drop in its profit after tax to ₦42.52 billion from ₦68.06 billion and sustained a net asset of ₦2.77 trillion with total assets of ₦9.36 trillion, higher than liabilities.

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Aradel Holdings has demonstrated a robust financial position, growing its profit after tax to N146.39 billion, up from N104.43 billion in the previous period. With net assets of ₦1.45 trillion, after deducting total liabilities from total assets of ₦1.81 trillion, the company showcases significant strength and resilience in its financial performance.

While Oando returned to profitability with a profit after tax of N63.31 billion in the six months from N62.65 billion in the review period, its net assets remained negative at N305.88 billion as its total assets at N6.76 trillion were less than its total liabilities.

The company had increasingly sunk deeper into debt in the past five years, raising concerns over its growing liabilities.

It has, since 2020, steeped into debt and has been unable to crawl out of the obligation as its total liabilities continue to exceed its total assets, widening its indebtedness and wiping out shareholders’ funds.

Winning back investors’ confidence

For Conoil, Oando, Seplat, Aradel and TotalEnergies to revert their negative YtD return and attract investor sentiment for the remaining months of the year, shareholders say consistent dividend payments, improved year-on-year financial performance, and quarterly reports could be the magic wand to win back investors’ confidence.

They want the companies to prioritise strategic vision and focus both on their short-term and long-term goals and build stability in their board and the quality of board members.

Also of concern are the effects of foreign exchange losses; better financial ratio indices; the effects of government policies, international oil prices and the global economy; and inflationary pressures occasioned by high finance costs, which tend to reduce profitability.

“The oil and gas sectors’ financial performance of most companies reveals a downward trend simply in response to global instability in international oil prices, the high cost of borrowings, dividend payouts which are below investors’ expectations and inflationary pressures,” the President of the New Dimension Shareholders Association, Patrick Ajudua, told Pinnacle Daily.

He further stated that shareholders are increasingly concerned about the ongoing damage to pipelines, widespread oil theft, and various acts of economic sabotage and vandalism. These issues not only disrupt oil production but also make it challenging to meet production targets, all while exacerbating the already high cost of sales.

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