Conoil Announces N1.44bn Profit, to Pay Shareholders N1.04bn Dividend

Shareholders of Conoil Plc are to receive a dividend of N1.04 billion for the year ended December 31, 2020. The dividend, which translates to 150 kobo per share was recommended following the release of the audited results of the petroleum products marketing firm.

Details of the results showed that the company recorded a revenue of N117.470 billion in 2020, compared with N139.758 billion in 2019.

Cost of sales printed at N107.657 billion as against N126.319 billion, making the company to end the year with lower gross profit of N9.818 billion as against N13.439 billion in 2019.

Distribution expenses stood at N2.072 billion, down from N3.074 billion the previous year, just as administrative reduced from N6.603 billion to N5.182 billion, while net finance cost was significantly reduced from N1.113 billion to N705 million.

Conoil Plc, therefore ended 2020 with a profit before tax (PBT) of N2.143 billion, lower than N2.832 billion, while profit after tax (PAT) stood at N1.44 billion as against N1.972 billion in 2019. Hence, the board recommended a dividend of N1.04 billion or 150 kobo per share.

Already, the company has started 2021 on a positive note, posting an increase of 62.8 per cent in PBT and PAT for the first quarter (Q1) ended March 31, 2021. Market analysts said this is an indication of higher returns for shareholders at the end of the year if the performance is sustained in the remaining quarters.

Specifically, Conoil posted a revenue of N33.091 billion in 2021, compared with N38.144 billion recorded in the corresponding period of 2020.The firm reduced its distribution cost from N538 million to N436 million, while administrative expenses declined from N1.628 billion to N1.285 billion.

As a result, PBT jumped by 62.8 per cent from N382.915 million in 2020 to N623.428 million, just as PAT rose by same margin from N260.382 million to N423.931 million in 2021.

The Chairman of Conoil Plc, Mike Adenuga (Jr.) had promised the shareholders of better execution of value-added products and services especially in the areas of marketing and growing the bottom-line.

According to Adenuga, the company had set an ambitious growth strategy for the next five years, driven by innovation and market penetration.

He assured the shareholders that the company would consolidate on its achievements to deliver a strong and sustainable performance that enhance juicy returns on their investment. He said the company had strategically positioned its business to take advantage of emerging opportunities in the downstream oil sector.