- Conoil Grows Q1 Profit to N3.3bn
Indigenous petroleum marketer, Conoil Plc, has reported a gross profit of N3.318bn for the first quarter of 2017, representing 67.66 per cent earnings rise compared to N1.979bn posted in the first quarter of 2016.
The improved financial performance for the first quarter ended March 31, 2017, showed a revenue of N24.474bn, which is an increase of 28 per cent over the N19.042bn recorded in the corresponding period of 2016.
Its profit after tax stood at N174.458m in 2017, compared with a loss of N944m in 2016, a statement by the oil major said.
Thus, it added that it was raising investors’ expectations for another bountiful harvest at the end of the year.
The frontline petroleum marketer, had last Wednesday announced a profit after tax of N2.837bn and proposed a dividend of 310 kobo per share for the 2016 financial year.
Analysts in the capital market had said the positive performance indicated bright prospects ahead for the shareholders of the company. The firm, last Wednesday, reported a revenue of N85bn, up from N82.919bn in 2015. Cost of sale reduced from N71.381bn to N70.8bn in 2016, bringing the gross profit to N14.14bn, compared with N11.53bn in 2015.
The oil firm said it reduced distribution expenses to N2.534bn, from N2.69bn after adopting a cost optimisation strategy. Its finance cost fell significantly from N3.75bn to N1.76bn.
Conoil, thus ended the year with profit before tax of N4.28bn, showing an increase of 24 per cent above the N3.44bn in 2015. Profit after tax rose by 23 per cent to N2.397bn to N2.837bn. Earnings per share also increased by 23 per cent from 333kobo in 2015 to 409kobo in 2016.
It said the improved 2016 performance resulted from its sustained culture of financial discipline, prudent and efficient execution of projects and plans, aggressive product development and marketing, supported by cutting-edge customer service delivery.
Conoil said, “Amid the challenging economic environment, our team proactively identified potential business risks and suggested quick fix solutions to optimally manage and minimise the risks, which helped in achieving efficiency in the way we do our business.”
The Chairman of Conoil Plc, Dr. Mike Adenuga had assured shareholders that in the face of the gloomy economy, the company would always strive to be one of the fastest growing and profitable companies in the country.
He assured that it will consolidate its gains and ensure greater returns on investment for its teeming shareholders.
While promising that the company’s ultimate goal to its customers will always be excellent service and products, he maintained that its promise for its shareholders remains maximum value.
Adenuga stressed, “We will drive our business to greater heights by re-establishing commanding presence in retail business, lubricants, aviation, liquefied petroleum gas, specialised products and non-fuel retail services .”