Conoil Grows Half Year Profit After Tax by 29% to N809 Million

Goddy Egene

Conoil Plc has raised investors’ hopes for higher dividend at the end of the year as the company has recorded double-digit growth in profitability for the first half (H1) ended June 30, 2018.

A look at the results, shows that turnover rose by 21.3 per cent from N44.93 billion in H1 of 2017 to N54.48 billion in 2018. Gross profit rose from N5.99 billion to N6.39 billion, while profit before tax increased to N809.78 million as against N627.91 million. Profit after tax grew by rose from N427.29 million in 2017 to N550.65 million in 2018, translating to 29 per cent appreciation.

Conoil had paid N1.4 billion cash dividend for the 2017 business year, representing a dividend per share of N2.00. In his address to the shareholders at the annual general meeting (AGM) last month, Chairman, Conoil Plc, Mike Adenuga (Jr), outlined many initiatives that would drive long-term growth of the downstream oil company and deliver competitive returns to shareholders.

According to him, the company would focus on further consolidation of its competitiveness in the different segments of its business with new investments in technologies, innovations and operating efficiency.

He noted that Conoil will maintain its leadership position in the downstream petroleum sector by building a stronger financial position and creating higher values for its shareholders.

Adenuga added that conscious efforts would be directed at achieving better execution of value-added products and services especially in the areas of marketing and customer management.

“The company’s policy of continual investment and review of our business processes to boost efficiency has been paying off, as this has been a very important part of our success story. We have, for several years now, ensured that our strategy remained constant, proven and effective, which is designed to improve returns and grow value for shareholders by focusing on our market strengths without jeopardizing the development of our diverse portfolios,” he said.

He noted that the company’s focus going forward would be to develop emerging markets while holding its grounds in areas where it has achieved competitive advantage.

The chairman said while the company has been expanding its retail network across the country, it has also been revamping its non-fuel retail business to achieve future growth targets.

“I have no doubt that our strategies for growth are promising. We will remain disciplined in our approach as we work harder more than ever before to deliver value to our customers and expand our capabilities in all fronts,” he said.