The unprecedented bull run recorded in the country's stock market resulted in over an N5 trillion increase in market capitalisation, coupled with the surge in global crudeThe unprecedented bull run recorded in the country’s stock market that resulted in over an N5 trillion increase in market capitalisation, coupled with the surge in global crude oil prices, impacted positively the oil and gas stocks listed on the Nigerian Exchange Limited as the sector grew by N355.
Specifically, a review of some of the companies’ performance YTD at May 20, 2022, showed that Seplat Energy recorded the highest gain of 100 per cent while Conoil followed with a YTD growth of 41.6 per cent while Eterna gained 40.6 per cent as of May 20, 2022. As a result of the invasion, many western countries imposed a ban on Russian oil and gas. The ban together with the attack on Saudi Aramco’s Jeddah depot caused a further spike in the price of crude to over $120 per barrel in the first quarter.
United Capital projected that listed upstream oil and gas firms will continue to be profitable due to increased cost reduction initiatives.