Conoil PLC

Conoil launches strategies to boost earnings

Industry analysts, who noted that the performance reflected the general trend in the industry during the period under review, praised Conoil for paying 100 kobo dividend at a time when many companies declared no dividend at all.

Adenuga said one of the important targets the company was set to achieve in the coming months was to make the lubricants business deliver more robust and competitive profitability. Consequently, he added, the company is installing new blending plants to complement the existing one at its Lagos depot. It has acquired state-of-the-art lubricants blending machines, comprising two new Multifil Automatic Filling machines and four auto-labellers.

Already, an additional plant has been installed at Apapa which will double the current filling capacity per annum; while a new plant is being built in Port Harcourt. The new filling lines are expected to increase production capacity for four-pack sizes by 100 per cent and 50 per cent for drum filling. The auto-labellers, he pointed out, are a new addition that will save valuable time and enhance efficiency.

The company is also rolling out a number of new products from its lube plants, which are expected to create additional income streams for the business. Among them are Quatro 2T, 1-litre pack of Quatro Ultra, Quatro Premium, hydraulic and compressor oils in 25-litre packs. Besides, plans are on to launch top quality brake fluid and coolant early next year. "Our ultimate goal is to make our lubricants business exceed industry’s growth level and stand out as the clear leader,” Adenuga declared.

Under the sustainable project too, the company is pumping a lot of funds into expanding its retail network to ensure that its products and services "reach the doorsteps of customers even in the remotest markets across the country”. The statement by the management said over 300 filling stations nationwide are presently being upgraded; while negotiations are on to acquire another 250 stations in strategic parts of the country.

The company is building one mega station in each state capital throughout the country, as part of measures to ensure its products and services get to the doorsteps of customers in every part of the country. It will be recalled that Conoil mega stations changed the face of fuel retailing in the country and set new standards for competition. They are one-stop service centres equipped with modern facilities and offering a wide range of quality services and conveniences, besides petroleum products.

According to Adenuga: "The target is to have 30 mega stations earmarked for various parts of the country. Work on 10 of such retail outlets has reached an advanced stage, while existing stations are being upgraded simultaneously to meet international standards.”

Also receiving attention is the aviation fuel marketing business, where the company enjoys far-reaching endorsement and global recognition as a world-class supplier and service provider. He affirmed Conoil’s rising profile in aviation fuel business, saying: "The company has just landed a major contract to supply aviation fuel to scores of airlines which are members of the Arab Air Carriers Organisation (AACO), the umbrella body of 57 airlines from the Middle East and the Arab nations.

"We are excited about the portfolio. This is indeed a measure of the reputation of Conoil as a major player in the business of aviation fuel service delivery. Apart from adding to our bottom-line substantially, it will further consolidate the company's leadership position in the aviation fuel market.”

Describing the current investment drive as a major reengineering plan aimed at strengthening Conoil’s capacity to access emerging opportunities and grow the business, Adenuga said: "We recognise the need to get fit for the more challenging market conditions ahead and are reacting proactively.”