Conoil grows profit by 62.8% to N623m in Q1 despite revenue decline

Conoil Plc has reported 62.8 per cent increase in profit before tax to N623.43 million in its unaudited first-quarter results for the period ended March 31, 2021, as against N382.92million reported in prior first-quarter results for the period ended March 31, 2020.

The results posted on the Nigerian Exchange Limited (NGX) website on Wednesday disclosed that profit after tax gained 62.8 per cent from N260.38million reported in Q1 2020 to N423.9million reported in Q1 2021.

The petroleum marketing company revenue reported 13.2 per cent drop in revenue to N33.09billion in Q1 2021 from N38.14billion reported in Q1 2020.

The decline in cost of sales, total operating expenses and finance cost drive profits in the period under review.

Conoil’s cost of sales for the period dropped to N30.73billion from N35.3billion reported in prior quarter results while finance cost dropped significantly by 86per cent to N55.2million in Q1 2021 from N38.7million reported in Q1 2020.

In addition, total operating expenses that comprise Distribution expenses and administration expenses dropped by 20.5 per cent to N1.72billion in Q1 2021 from N2.2billion reported in Q1 2020.

The firm total assets rose by nine per cent to N53.05billion as of March 31, 2021, from N48.86billion reported in the full-year ended December 31, 2020.

Conoil reported 27 per cent drop in its profit to N1.44billion in audited results for the full-year ended December 31, 2020, from N1.97billion reported in full-year ended December 31, 2019.

Similarly, profit before tax also dropped by 24.3 per cent to N2.15billion in 2020 from N2.83billion in 2019.

The petroleum marketing company reported 15.9 per cent drop in revenue to N117.47billion from N139.76billion reported in 2019.

Amid weak performance, the company proposed a dividend of N1.50, 25 per cent below N2.00 dividend paid to shareholders in 2019.

Conoil’s total assets also dropped by 23 per cent to N48.86billion in 2020 from N63.58billion in 2020, while total equity closed 2020 at N19.52bllion, 0.3 per cent above N19.47billion in 2019.

Conoil (formerly National Oil and Chemical Marketing Plc) was incorporated in 1960 as a private limited liability company – Shell Nigeria Limited.

In April 1975, the Federal Government of Nigeria acquired 60per cent shares of the Company through the Nigerian National Petroleum Corporation (NNPC) and the Company became known as National Oil and Chemical Marketing Company (NOLCHEM).

The Company was later converted to a public company and in the year 2000, the Federal Government of Nigeria through the Bureau of Public Enterprises (BPE) bought 40% issued ordinary shares of the Company held by Shell Company of Nigeria (UK) Limited. After the privatization of the Company, Conpetro Limited acquired 60% of the issued shares of the Company.

As a result of a rights offering by the Company in 2002, Conpetro Limited now holds 74.4% of the issued capital while members of the Nigerian public hold the remaining 25.6% stake in the Company.