Nigeria: Conoil PLC Reports Strong Q3 Financial Performance

Conoil PLC has released its third-quarter 2024 financial report, showcasing a pre-tax profit of N4.2 billion a 30.82% increase from the N3.2 billion reported in the same period last year. For the cumulative nine-month period ending September 30, 2024, Conoil’s pre-tax profit rose significantly to N14.4 billion, marking a 30.64% year-over-year rise.

The company’s revenue saw a notable uptick, surging 35.10% year-over-year in the third quarter to reach N68.5 billion, compared to N50.7 billion in 2023. Additionally, Conoil reported a substantial rise in earnings per share (EPS) to N4.7 for the third quarter, reflecting a 35.90% increase from N3.5 in the previous year.

Key Financial Highlights (Q3 2024 vs. Q3 2023)

– Revenue: N68.5 billion, up 35.10% YoY

– Cost of Sales: N60.7 billion, up 32.88% YoY

– Gross Profit: N7.8 billion, up 55.23% YoY

– Administrative Expenses: N1.1 billion, up 4.97% YoY

– Finance Cost: N253.3 million, down 48.02% YoY

– Pre-tax Profit: N4.2 billion, up 30.82% YoY

– Post-tax Profit: N3.3 billion, up 36.02% YoY

– Earnings per Share: N4.7, up 35.90% YoY

– Total Assets: N96.5 billion, down 0.93% YoY

Detailed Financial Performance

Conoil’s revenue grew by 35.10% year-over-year in Q3 2024, reaching N68.5 billion, up from N50.7 billion in 2023. This increase was accompanied by a 32.88% rise in the cost of sales, totaling N60.7 billion compared to N45.7 billion in the previous year. Despite these cost increases, Conoil’s gross profit climbed to N7.8 billion, a substantial 55.23% improvement year-over-year from N5.0 billion.

The company reduced its finance costs by 48.02%, bringing them down to N253.3 million from N487.4 million last year, even as administrative expenses rose by 4.97% to N1.1 billion. Conoil’s pre-tax profit for Q3 2024 surged by 30.82% year-over-year to N4.2 billion, contributing to a cumulative nine-month pre-tax profit of N14.4 billion. Furthermore, post-tax profit rose by 36.02% year-over-year, reaching N3.3 billion compared to N2.4 billion in 2023, bolstering earnings per share by 35.90% to N4.7.

Asset, Liability, and Equity Overview

As of September 30, 2024, Conoil reported total assets of N96.5 billion, a slight dip from N97.4 billion last year. This was primarily driven by adjustments in non-current assets, notably in property, plant, and equipment. However, the company saw a notable increase in total equity, which rose to N44.4 billion, due to improved retained earnings. Meanwhile, total liabilities decreased by 19.03% to N52 billion, largely due to a reduction in current liabilities.

Cash Flow Overview

For the nine-month period, Conoil generated N23.9 billion in net cash from operating activities, navigating significant shifts in working capital. Net cash used in investing activities was N1.6 billion, primarily allocated to the acquisition of property, plant, and equipment, while financing activities accounted for a cash outflow of N2.4 billion, reflecting interest payments. Overall, the net increase in cash and cash equivalents was N19.8 billion, improving the cash position by 96.04%.