Conoil Sustains Positive Results, Posts 54% Increase Profitability

By Goddy Egene
Conoil Plc has sustained its impressive performance despite the economic headwinds, recording a 54 per cent increase in its profit before tax (PBT) for the nine month ended September 30, 2016.
The performance of the major fuel marketer indicated that it continued to withstand challenging operating environment in the downstream sector of the
nation’s petroleum industry. According to the unaudited results of the company made available to capital market operators through the Nigerian Stock Exchange (NSE), revenue rose by six per cent to N63.931 billion, from N60.157 billion. The management reduced distribution expenses from N1.916 billion to N1.796 billion. Similarly, finance cost was reduced from N2.831 billion in 2015 to N1.634
Consequently, PBT improved
to N2.72 billion , showing an increase of 54 per cent over the N1.76 billion recorded in the previous year. Market operators said given the improved results, shareholders of the company are assured of another bumper reward at the end of the year. The directors had recommended a dividend of N3.00 per share for 2015 financial year.
Commenting on the nine months results, Conoil Plc management attributed it to efficient allocation of
resources, its long term and pain-staking strategic business planning and its strict adherence and implementation of global operating standards in all its business processes.
Before the nine months performance, Conoil Plc had recorded a similarly impressive results for the half -year results to June 30, 2016. It recorded PBT of N1.566 billion, representing a growth of 196 per cent from N528.5 million recorded in the corresponding period last year.
It also posted an increase of 190 per cent increase in profit after tax from N359.4 million last year to N1.04 billion this year.
Conoil had assured its shareholders of its optimism to sustain and grow the impressive performance with improved returns for shareholders at the end of the current financial year.
Realising the fact that the years ahead portend greater challenges in the downstream petroleum sector, Conoil Plc stepped up investments in
the core segments of the downstream business with a view to consolidating its competitive edge and breaking new grounds to further boost its market share.
The strategic investment project entails upgrading and construction of facilities in the priority areas, such as retail, lubricants, aviation and specialised products, so as to provide additional capacity that will enable it to meet the long-term needs of its growing business.