Eterna Plc and Conoil Plc are leading the oil and gas sector at the stock market in terms of capital gains in the New Year. Following the recovery of the market from a three-year decline, the market appreciated 42.3 per cent last year. As the rally continued in 2018, the NSE All-Share has appreciated by 17.9 per cent as at last Friday, while the NSE Oil & Gas gained 10.6 per cent. However, an analysis of stocks in the sector showed that Eterna Plc and Conoil Plc have significantly outperformed the NSE ASI and Oil & Gas Index.
Eterna Plc occupies the first position with 48.7 per cent, closely followed by Conoil Plc with a gain of 47.8 per cent. Forte Oil Plc appreciated by 19 per cent, just as Double One Plc garnered 11 per cent. Seplat Petroleum Development Company Plc. Total Nigeria Plc gained 0.46 per cent.
Market operators said investors are bullish on Eterna and Conoil Plc in anticipation likely impressive performance for the full year ended December 31, 2017.
Conoil Plc had paid a dividend of N2.15 billion to shareholders last year for the 2016 financial year, showing an increase from N2.08 billion paid the previous year. The 2016 dividend translated to N3.10 kobo per share, up from N3.00 in 2015.
The company had reported a profit before tax of N4.28 billion from N3.4 billion in 2015, an increase of 24 per cent, while profit after tax increased from N2.30 billion in 2015 to N2.84 billion, representing a 23 per cent rise.
Shareholders had last year at the annual general meeting (AGM) held in Uyo commended the performance, saying the company had continued to pay dividend to shareholders over the years.
Sir Sunny Nwosu of Independent Shareholders Association of Nigeria (ISAN) said the shareholders would continue to support the board and management to ensure that it maintains it impressive performance going forward.
Similarly, Chief Timothy Adesiyan of Nigerian Shareholders’ Solidarity Association(NSSA)said: “The management and board of the company have not only performed excellently well but have also fulfilled their promise of maintaining consistent returns to shareholders.”
“Given the tough operating environment in 2016 characterised by tight liquidity, rising cost of funds and the inability of petroleum marketing companies to import fuel in the face of little or no supply from the domestic refineries, Conoil still braved the odds, recorded profits and is able to pay dividend to its shareholders.”
Source:© Copyright Thisday Online