The nine months of 2013 unaudited results re¬leased by Nigerian Stock Exchange and made available to BusinessDay Research and Intelligent Unit (BRIU) shows that the turnover of six out of the seven quoted petroleum products marketing companies fell by N53 bil¬lon or 6 percent.These companies include Oando Plc; Total Nigeria Plc; Mobil Oil Nige¬ria Plc; Forte Oil Plc; Conoil Plc and MRS Oil Nigeria Plc.
The six companies analysed had total turnover of N901 billion in the first nine months of year 2013, 6 percent or N53 billion lower than the turnover of N954 billion re¬corded in the corresponding period of 2012. The drop in the revenue of the six analyzed companies can be traceable to Oando Plc and Mobil Oil Nigeria Plc with a shortfall of 21 and 4 percent in their respective turnovers.
Looking at it from the other angle, companies like Total Nigeria Plc; Conoil Plc ; Forte Oil Plc and MRS Oil Nigeria Plc have their turnover increased by 5,6, 29, 32 percent re-spectively.
In all, three out of the six compa¬nies had total turnovers of N682 bil¬lion, making up 76 percent of the total turnovers of N901 billion earned by all the marketing companies analysed in this report.
However, among the six ana¬lyzed companies, Oando Plc has the highest turnover of N386 billion despite the decline in revenue when compared with the corresponding period of 2012. Total Nigeria Plc occupied the second place with total turnovers of N174 billion while Co¬noil Plc came third with turnover of N122 billion. Forte Oil had the fourth highest turnover of N92 billion of the total turnovers recorded by the six petroleum products marketing companies.
Rig rates to go up in African contracts
Seadrill, the world’s biggest driller by market value, is likely to get higher-than-expected rig charter rates in forthcoming African contracts, even while rates fall across the industry. The rates for two of its new rigs, called Jupiter and Saturn, were negotiated months ago when the market was booming, and they are likely to be finalised at a high level soon.
Drilling rig rates have declined sharply in recent months, and market players expect a soft market for the next 18-24 months as oil companies cut back on spending to save cash for dividends and drillers take delivery of a slew of new vessels.
Rates in the ultradeep market, the most lucrative segment, peaked close to $625,000 a day in 2013 but are down to around $575,000 per day this year for the so-called 6th generation rigs. Ana¬lysts see it falling to between $525,000 and $475,000.
The Saturn and Jupiter rigs, under construction by Samsung Heavy In¬dustries, are set to enter the market in the second and third quarters.