TotalEnergies and Conoil have emerged as the two downstream companies with the highest shareholders’ funds in Nigeria, a BusinessDay analysis has revealed.
Shareholders’ funds are the total assets of a company minus its liabilities. It is a measure of the company’s net worth and is often used by investors to assess the financial health of a company.
Data sourced from the company’s financial statements showed Total Energies and Conoil recorded the highest shareholders fund which accounted for 75 percent of the total shareholder’s fund of four downstream firms listed on the Nigerian Exchange Group.
The high shareholders’ funds of TotalEnergies and Conoil indicate that these companies are financially sound and have a strong balance sheet. This is a positive sign for investors, as it suggests that these companies are well-positioned to withstand economic shocks and continue to grow their businesses.
The high shareholders’ funds of these companies also reflect the importance of the downstream sector to the Nigerian economy.
The downstream sector is responsible for the refining, marketing, and distribution of petroleum products. It is a major source of employment and revenue for the government.
The four downstream firms analysed are Total Energies, Conoil, MRS Oil, and Eterna with shareholders’ funds which amounted to N51.94 billion, N31.27 billion, N20.81 billion, and N7.05 billion respectively.
Further analysis reveals that these firms recorded a cumulative of N111.07 billion in H1 2023 from N87.72 billion which indicates 27 percent growth.
The firms recorded an aggregate revenue of N490.74 billion in H1 2023, a 34.4 percent increase from N365.14 billion in the same period of 2022.
Total Energies shareholders’ funds amounted to N51.94 billion in H1 2023 from N44.06 billion in the same period of 2022.
The firm’s earnings per share stood at N25.88 per share from N25.12 per share in the comparable period.
Total Energies revenue increased to N274.61 billion from N209.01 billion while profit after tax rose to N8.79 billion from N8.53 billion.
Total Nigeria is a marketing and services subsidiary of TotalEnergies; a multinational energy company operating in more than 130 countries and committed to providing sustainable products and services for its customers.
Conoil’s shareholders’ funds amounted to N31.27 billion in H1 2023 from N23.6 billion in the similar period of 2022.
The firm’s earnings per share grew to N9.01 per share from N2.61 per share in the comparable period.
Conoil’s revenue increased to N87.14 billion from N56.25 billion while profit for the period amounted to N6.25 billion from N1.81 billion.
Conoil Plc is a Nigerian petroleum marketing company involved in the sale of regulated gasoline and kerosene, diesel, aviation fuel, and low-pour fuel.
MRS Oil shareholders fund grew to N20.81 billion in H1 2023 from N18.5 billion in the same period of 2022.
The firm’s earnings per share increased to N6.74 per share from N1.15 per share in the comparable period.
MRS Oil revenue increased to N59.65 billion from N42.66 billion while profit after tax increased to N2.31 billion from N351.81 million.
MRS Oil is one of the largest and leading marketers of refined products, including quality gasoline, marine, and aviation fuels in the downstream industry in Nigeria.
Eterna’s shareholders’ funds grew to N7.05 billion in H1 2023 from N1.56 billion in the same period of 2022.
The firm’s earnings per share increased to N4.51 per share from N0.96 per share in the comparable period.
Eterna’s revenue amounted to N69.34 billion from N57.22 billion while the firm recorded a loss after tax of N5.89 billion from a profit after tax of N1.25 billion.
Eterna plc manufactures, markets, and distributes lubricants and chemicals, trades in crude, and operates a network of filling stations.