The upstream oil and gas sector is pivotal globally — fueling transportation, heating, and industrial processes. In Nigeria, it plays a crucial role, not only in powering the nation but also as a vital source of revenue for the government and as a major employer, supporting millions of livelihoods.
This article delves into the performance of some Nigerian upstream oil and gas company stocks in the 3rd quarter (Q3) of 2023 (July to September 2023). It encompasses a spectrum of players in the Nigerian sector, including indigenous operators, international majors, and international oil servicing companies.
Nigerian Companies Operator’s Stock Price Performance
The stock performance of two Nigerian indigenous upstream companies listed in the Nigerian Stock Exchange was analysed — Oando Plc and Seplat Energy. Both companies have recorded significant growth in their prices thanks to the increase in global oil prices which averaged about $81 per barrel.
Ondoa Plc: Oando Plc, a significant indigenous operator, commenced Q3 at a stock price of NGN 5.46 [approx $0.007] per share. By the end of the quarter, it had scaled by 75.5% to reach NGN 9.58 [approx $0.012], indicating increased market confidence.
Compared to Q2, OANDO’s stock price increased by 18.9% in Q3 2023, while its average trading volume increased by 144.7%. This is a significant increase in both price and volume, and it suggests that there was a stronger demand for OANDO’s stock during the quarter. There are several possible explanations for this performance. A major reason will be Oando’s acquisition of 100% of the shares of Nigerian Agip Oil Company (NAOC).
Seplat Energy: another prominent indigenous player in Nigeria’s upstream sector, embarked on a consistent upward journey throughout Q3. Commencing Q3 at NGN 1,462.42 [approx $1.85] per share, Seplat’s stock price ended the quarter at NGN 1,837 [approx $2.33], reflecting a steady ascent. The average trading volume was 121,408, a 5.6% decline from the previous quarter Q2.
Overall, Seplat Energy’s stock price increased in Q3 2023 due to a combination of factors, including higher oil and gas prices, increased production volumes, the potential acquisition of Mobil Producing Nigeria Unlimited (MPNU), and positive investor sentiment.
International Oil Companies Operator’s Stock Price Performance
The stock prices of five international upstream companies [IOC] with operations in Nigeria were analysed as seen in Charts 3 and 4 below — ENI S.p.A, Exxon Mobil, Total Energies, Chevron Corporation, and Shell Plc.
| Companies | Q3 Revenue | % Change from Q2 | |
| 1 | Chevron Corporation | $6.5 billion | – 8.2% |
| 2 | ENI S.p.A | $75.63 million | + 1.0% |
| 3 | ExxonMobil | $9.1 billion | + 15.2% |
| 4 | Shell Plc | $6.2 billion | + 22.7% |
| 5 | Total Energies | $6.7 billion | + 63% |
Chevron Corporation: saw its average stock price at $161.52 in Q3 2023, which was a 0.7% increase from Q2. Chevron’s trading volume in Q3 decreased by 5.8% from 7.23 million in the previous quarter to 7.68 million. One possible reason for this decline is due to the decreased revenue in the quarter.
ENI: In Q3 2023, the average stock price of Eni S.p.A. was approximately $30.81, which was a 6.3% increase from Q2. The average trading volume had a decrease of about 12% from 278,525 to 245,050. One possible reason for the decline in Eni S.p.A.’s trading volume is due to the company’s decreased revenue from the previous quarter.
Exxon Mobil: had an average stock price of $109.68 in Q3 (a 0.5% increase), with an average trading volume of 15.66 million shares, which is a 2.4% increase from the previous quarter. This is majorly due to the increased revenue compared to the previous quarter.
Total Energies: ended the quarter with an average stock price of approximately $61.84, which was an increase of 2.2% from the previous quarter. The average trading volume in Q3 decreased by 19.3% from 1.46 million shares to 1.18 million. This could be attributed to the company’s decreased revenue from the previous quarter.
Shell Plc: had an average stock price of $62.25 in Q3 2023, which was a 3.7% decrease from the previous quarter. The average trading volume in Q3 also increased by 1.6% from 4.47 million to 4.54 million. Shell has reported record earnings of $9.45 billion in Q3 2023, and analysts expect the company to continue to generate strong earnings in the coming quarters.
Oil Servicing Companies’ Stock Price Performance
The stock prices of five international oil servicing companies with operations in Nigeria were analyzed. These are Baker Hughes, Saipem, Schlumberger, TechnipFMC, and TransOcean.
| Companies | Q3 Revenue | % Change from Q2 | |
| 1 | Baker Hughes | $6.64 billion | + 5% |
| 2 | Saipem | $84.49 million | + 9% |
| 3 | Schlumberger | $8.3 billion | + 3% |
| 4 | TechnipFMC | $2.06 billion | + 4.3% |
| 5 | Transocean | $713 million | – 2.2% |
Baker Hughes: As seen in Charts 5 and 6 below, Baker Hughes embarked Q3 2023 with a stock price of $34.33, and by the end of the quarter, the stock price had climbed to $36.34. The average trading volume also increased by 3.5% from the previous quarter’s average, reflecting investor optimism about the company’s future prospects. The company’s strong performance was driven by higher volumes in both oilfield services and equipment and industrial and energy technology.
Saipem: Saipem ended Q3 2023 with an average stock price of $1.58, which was an increase of 12.9% from the previous quarter. The average trading volume also increased by 45.4% from the previous quarter from 27.11 million to 39.41 million. This shows strong investor enthusiasm. According to a report from Saipem, it was a year of “another quarter of strong execution and delivery”. There was a quarter-on-quarter revenue growth of 9%.
Schlumberger: Schlumberger, another heavyweight in the sector, started Q3 2023 with a stock price of $55.57. By the end of the quarter, it had risen to $60.42, indicating steady progress. However, the average trading volume decreased from the previous quarter Q2 by 5.2%. This shows reduced investor enthusiasm. A possible reason for the increase in stock price from the previous quarter is due to an increase in Schlumberger’s revenue from the previous quarter.
TechnipFMC: TechnipFMC closed Q3 2023 with an average stock price of $18.87, which was an increase of 33.8% from Q2. The average trading volume also increased by 21.4% from the previous quarter from 5.54 million to 6.73 million. This shows increased investor enthusiasm.
Transocean: Transocean, a major player in offshore drilling services, commenced Q3 2023 with a stock price of $8.08. Although the stock price increased by 32.2% from the previous quarter, the average trading volume was lower than the previous quarter’s average by 2.8%. This suggests that there was a little less interest and activity in the stock. This decline is likely due to the company’s wider-than-expected loss and lower-than-expected revenues.
Conclusion
In conclusion, the stock performances of these companies in Q3 (from July to September 2023) reflect the complex dynamics of the oil sector. A pronounced aspect of this analysis reveals that some of the stock prices of upstream operators have exhibited noteworthy resilience and growth in recent months.
However, investors and industry observers should continue to monitor these stock prices and remain attentive to factors such as oil demand, oil prices, and industry dynamics. The oil sector is known for its cyclical nature, and a nuanced understanding of these factors is vital for informed investment decisions and navigating the dynamic oil landscape.
