Conoil Plc reported a 93.3% plunge in first-quarter profit for 2025 as revenue dropped by 12.8% amid mounting cost pressures and weaker sales performance.
The company’s unaudited financial statements for the period ended March 31 show a sharp contraction in earnings despite modest growth in shareholders’ equity and retained earnings.
Revenue and Profitability
The petroleum marketing company posted a 12.8% decline in revenue to ₦79.26 billion from ₦90.94 billion recorded in Q1 2024. This drop in topline performance was matched by a steep contraction in profit before taxation, which plunged by 93.3% to ₦372.04 million, compared to ₦5.53 billion in the same period of the previous year.
Tax expenses also declined sharply by 93.3%, totaling ₦79.99 million in Q1 2025 versus ₦1.19 billion in Q1 2024.
Consequently, profit after tax stood at ₦292.05 million, representing a 93.3% drop from ₦4.34 billion in the corresponding quarter of 2024.
Shareholders’ Value
Despite the earnings decline, retained earnings rose by 6.9% to ₦35.61 billion from ₦33.32 billion in Q1 2024.
Similarly, shareholders’ funds improved by 6.1% to ₦39.78 billion, compared to ₦37.49 billion in the previous year.
The company’s net assets per share increased to 5733 kobo, up from 5402 kobo, indicating steady accumulation of book value.
However, earnings per share dropped significantly to 42 kobo from 626 kobo in Q1 2024. No dividend was declared for the period under review.
Outlook
The weak performance in Q1 2025 raises questions about Conoil’s cost management and revenue diversification in a volatile downstream market. The margin compression suggests rising operating or finance costs, weaker sales volumes, or reduced margins from core products amid high inflation and competitive pricing pressures.
While growth in shareholders’ funds and retained earnings reflects a stable capital base and reinvestment of prior profits, the sharp earnings decline could weigh on investor sentiment and dividend expectations for the current financial year.
As Conoil navigates a challenging operating environment, investors will be closely monitoring the company’s Q2 performance and strategic responses to market dynamics in the downstream oil sector.
