Conoil Plc Grows Profit after Tax by 54% to N325m in Three Months


Goddy Egene

Petroleum product marketing firm, Conoil Plc has reported a jump of 54 per cent in its profit after tax for the first quarter ended March 31, 2019, following efficient cost management. While the company grew its revenue by 13.8 per cent, from N31.3 billion, to N35.6 billion, significant reduction in distribution, administrative and finance costs enhanced its bottom-line.

Cost of sale rose from N28.3 billion to N32.7 billion, making gross profit to decline marginally from N3.1 billion to N3 billion. However, distribution expenses fell from N650 million to N449 million, just as administrative expensive reduced from N1.669 billion to N1.556 billion. Finance cost fell from N525.9 million to N506.52 million.

Consequently, profit before tax increased from N310.73 million in 2018 to N478.2 million, while PAT rose from N211.29 million to N325 million in 2019. Market operators said if the Q1 performance could be sustained in the second quarter and throughout the year, shareholders should expect higher dividend.

Conoil Plc last week announced a dividend of 200 kobo  per share for the 2018 financial year after the company posted a PAT of  N1.796 billion for the year ended December 31, 2018, showing an increase of 14 per cent above the N1.579 billion posted in 2017.

Chairman of Conoil Plc, , Mike Adenuga(jnr) had last year  assured  shareholders that conscious efforts would  be directed at achieving better execution of value-added products and services especially in the areas of marketing and customer management.

He had said company kept expanding its retail network across the country and the non-fuel retail business was being revamped with a view to achieving future growth targets.

According to him, every segment of the business from aviation to LPG to specialised products would continue to receive the desired attention with a view to achieving and maintaining world-class levels of operating and capital discipline.

Adenuga said the company was fully charged to consolidate its competitiveness in the different segments of its business by exploring and developing emerging markets while holding its grounds in areas where it has competitive advantage.

Towards this goal, he said company introduced into the market, another brand of quality engine oil, Conoil Crown Heavy Duty Oil manufactured specially for the mass market of car owners.

“With the introduction of this product, we are poised to fill the yawning void in the industry as a pragmatic marketer of first choice,” Adenuga said.

The chairman expressed gratitude to stakeholders for their support for the modest progress it recorded in spite of the odds and the unfriendly business environment it operated last year.