Volumes were 1.5% weaker in the first quarter in Nigeria, and down 7.6% in the rest of Africa. Management has blamed gas supply disruptions in Nigeria and maintenance and supply chain issues elsewhere. Despite that, the company was able to grow revenue by 24%, supported by higher prices in Nigeria.
Nigeria’s gas supply bottleneck is likely to put a ceiling on volume growth over the rest of 2022, the research says. Management told an analysts conference call that it favours profitability over volume growth. Chapel Hill Denham now expects full-year volumes to grow by 5.9%, a reduction of 3.2 percentage points from its previous forecast.