Conoil Records N2.8bn Profit, to Pay N2.2bn Dividend

• Conoil Records N2.8bn Profit, to Pay N2.2bn Dividend

Conoil Plc wednesday announced a dividend of N2.15 billion for the year ended December 31, 2016, up from N2.08 billion paid the previous year. The dividend translates to N3.10 per share compared with N3.00 paid in respect of 2015.

According to the company, the improved dividend is in line with its history of progressive dividend policy. In its audited results for 2016 financial year obtained from the Nigerian Stock Exchange(NSE), Conoil recorded improved performance across key financial parameters despite the challenging operating environment.

The leading petroleum products marketing firm, posted revenue of N85 billion, up from N82.919 billion in 2015. Cost of sale reduced from N71.381 billion to N70.8 billion in 2016, bringing the gross profit to N14.14 billion, compared with N11.53 billion in 2015.

The company also adopted cost optimisationstrategies, which led to a reduction in distribution expenses to N2.534 billion, from N2.69 billion. Similarly, finance cost fell significantly from N3.75 billion to N1.76 billion.

Consequently, Conoil ended the year with profit before tax of N4.28 billion, showing an increase of 24 per cent above the N3.44 billion in 2015. Profit after tax rose by 23 per cent to N2.397 billion to N2.837 billion.

Earnings per share also increased by 23 per cent from 333kobo in 2015 to 409kobo in 2016.

Capital market operators said this performance has further raised the bar of the strategic positioning of Conoil leading as marketer of choice. The share price of the Conoil rose by 4.9 per cent to close at N40.42 as investors reacted positively to the results.

The company attributed the performance to 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.

The Chairman of Conoil Plc, Dr. Mike Adenugahad last year 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 promised that it will consolidate its gains and ensure greater returns on investment for its teeming shareholders.

“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, ” Adenuga said.