Conoil: Sustaining Shareholders Return on Investment 

Kayode Tokede  

Conoil Plc over the years has sustained its tradition of delivering value to shareholders despite an unrelenting economic climate.

In the last 20 years, the company has consistently rewarded shareholders with dividend payout and its impact has tickled down to its stock price currently trading at N187.20 per share on the floor of the Nigerian Exchange Limited (NGX). 

From a dividend payment of N1.50 per share in 2020 to N3.50 per share in 2024 financial year (FY), the downstream company has remained resilient and competitive among its peers listed/unlisted on the   bourse. 

The dividend payout of N3.50 per share in 2024FY (N2.43 billion) from N2.50 per share in 2023FY (N1.73 billion), is the highest in the history of the company and it is on the backdrop of the management’s resilience and strategic focus as a leading force in Nigeria’s downstream petroleum sector.  

In the year under review, the company declared N323.1 billion in revenue, nearly 61 per cent growth from N201.4 billion in 2023 to underline the management’s effectiveness of its strategic initiatives and the agility of its operations. 

Also, the declared N323.1 billion is another record  and it was driven by 98 per cent revenue from  White products that contributed  98 per cent or N316.66 billion, while  lubricants contributed two per cent or N6.5billion of the total revenue generated in 2023.  

Conoil has identified three operating and reportable segments: White products, Lubricants and Liquefied Petroleum Gas (LPG). 

The White products segment is involved in the sale of Premium Motor Spirit (PMS), Aviation  Turbine Kerosene (ATK), Dual Purpose Kerosene (DPK), Low-pour Fuel Oil (LPFO) and Automotive  Gasoline/grease Oil (AGO).

The products under the lubricants segment are Lubricants transport,  Lubricants industrial, Greases, Process Oil and Bitumen. Products traded under the LPG segment are  Liquefied Petroleum Gas – Bulk, Liquefied Petroleum Gas – Packed, cylinders and valves.

From the profit & loss figures, the company declared N2996.77 billion cost of sales, representing an increase of 63 per cent from N181.6billion in 2023, to bring gross profit at N26.35billion in 2024, about 33 per cent increase over N19.8 billion reported in 2023. 

Conoil’s declared operating expenses of N11.49billion in 2024, representing an increase of  58 per cent from N7.25 billion in 2023. 

The breakdown of the company’s operating expenses showed that distribution expense closed 2024 at N6.89 billion in 2024, up by 149.45per cent from N2.76billion in 2023, while administrative expenses  moved from N4.49 billion in 2023, about 2.4 per cent when compared to N4.6billion declared in 2024.  

Finance cost was at N3.95billion in 2024, up by 102.2 per cent from N1.96 billion in 2023. Finance cost 102.2 per cent was driven by N3.95 billion interest on bank overdraft  in 2024 from N1.95 billion in 2023 and accretion expense that closed 2024  at N7.9million in 2024 from N6.7million in 2023.  

“Bank overdrafts are repayable on demand. The average effective interest rate on bank overdrafts

approximates 32% (2023: 19per cent) per annum and are determined based on NIBOR plus lender’s markup. The overdraft was necessitated by the increase in the cost of both white products and base oils in line with the current economic realities,” the company explained in its 2024 audited result and accounts. 

On this, the company posted profit before tax of N11 billion in 2024 from N12.28 billion in 2023,while profit after tax moved from N9.87 billion in 2023 to N8.77 billion in 2024.  

Stronger balance sheet position 

Conoil, however, has maintained its stronger position to reflect robust expansion in its area of operations.

 In 2024, the company posted total assets of N114.95 billion, representing an increase of nearly 18 per cent from N97.5 billion declared in 2023. 

As total current assets crossed the  N100 billion mark to N108.47billion in 2024 from N93.61 billion in 2023, total non-current assets closed 2024 at N6.5billion from N3.87 billion in 2023. 

Equally noteworthy was the growth in shareholders funds of N39.5 billion in 2024, a growth of 19.1 per cent from N billion in 2023 that has strengthened the company’s financial base. 

The company’s total liabilities closed 2024 at N75.46billion in 2024 from N64.3billion in 2023. 

Conoil’s balance sheet resilience was further evidenced by a 10per cent reduction in borrowings, bringing total borrowings of that category down from N32 billion to N28.7 billion.

Reward Despite Challenges

Addressing shareholders at the company’s Annual General Meeting recently in Uyo, the Chairman of the Board noted that the year under review was defined by acute macro economic pressures. 

Nigeria grappled with a confluence of fiscal and structural challenges, including sustained inflationary pressures, infrastructural gaps, exchange rate instability, and an economy adjusting to the aftermath of fuel subsidy removal. 

These issues combined to squeeze purchasing power, heighten operational costs, and dampen business prospects across multiple sectors. Yet, within this difficult environment, Conoil not only navigated the turbulence but concluded the year with commendable financial outcomes.

He attributed these achievements to a combination of proactive decision-making, prudent resource management, and an unwavering commitment to operational excellence. 

He emphasised the pivotal role of human capital in sustaining the Company’s progress, affirming that Conoil’s success rests on the dedication, professionalism, and innovative spirit of its employees. The Company continues to invest in talent, nurturing a culture that values productivity, equality, and personal fulfilment, irrespective of background, gender, or creed. Beyond its internal strengths, Conoil reaffirmed its steadfast adherence to ethical business conduct and responsible corporate governance. 

The Chairman reiterated that the Company remains fully aligned with the Nigerian Code of Corporate Governance (2018), ensuring accountability, transparency, and sustainable growth. He acknowledged the growing global expectations for responsible corporate citizenship and noted that Conoil had continued to

support social development initiatives, using its influence and resources to positively impact the communities in which it operates.

Looking to the future, the Chairman expressed cautious optimism, highlighting opportunities arising from Nigeria’s ongoing economic reforms and the anticipated expansion of both oil and non-oil sectors.  The Company is poised to deepen its footprint in critical product segments, expand its lubricants and LPG markets, and strengthen its aviation fuel delivery infrastructure, ensuring it remains competitive in a deregulated downstream environment. 

He concluded by thanking shareholders, customers, employees, and partners for their steadfast support, assuring them that Conoil remains committed to innovation, disciplined execution, and sustained value creation. With a clear mission, the right leadership, and well-calibrated strategies, the Company is positioned not only to maintain its trajectory of growth but to define new performance frontiers in the years ahead.