Conoil PLC

Conoil’s Q1 result shows 713% rise in profit

2011-May-24
There are strong indications that shareholders of Conoil Plc may reap bountifully this financial year, as the foremost oil marketing company has recorded a substantial leap in profit and turnover in the first quarter of 2011.

The unaudited trading results for the period between January and March 31, 2011 which was submitted to the Nigerian Stock Exchange (NSE) showed that the company posted N1,742,945 billion profit before tax, a whopping 713.53% increase over the N214,245 million recorded in the corresponding period last year.

Also, the profit after tax witnessed a similar trend with a sharp rise from N145,687 million in 2010 to N1,185,203 billion this quarter; while the turnover, which was N21,071,554 billion between January and March 2010, appreciated by 77.02% to peak at N37,301,786 billion during the same period this year.

Conoil management has expressed strong determination to sustain this remarkable performance for the rest of the year to enable the company achieve its goal of triple growth rate in the current year.

“We intend to maintain and even surpass the current performance in the remaining nine months of the year. We are convinced that our profit projection for the 2011 financial year is achievable and we have the will and the wherewithal to attain it,” a top management source said.

Towards achieving its projections for improved shareholder value, Conoil has launched strategic investment initiatives aimed at boosting its income. A statement by the management explains that the focus is on upgrading the company’s facilities and building modern infrastructures in depots across the country, with a view to taking full advantage of the emerging markets in the industry.

One major component of the expansion initiative is the construction of a massive depot in Port Harcourt, Rivers State, which is meant to complement its flagship depot in Apapa, Lagos. The ultramodern facility, built to hold 70,000 metric tonnes of products, will enable the supply of 55 million litres of fuel per day, delivering 300 trucks on a daily basis.

The company has also repositioned its lubricants business, building two additional state-of-the-art oil blending plants in Apapa and another one in Port Harcourt, all of which the management said had pushed up its production capacity significantly. It has also introduced into the market new brands of engine oil, including Okada Golden Super and Quatro Generator Oil which are manufactured specially for 4-stroke motorcycles/tricycles and heavy-duty power generating sets respectively.

“We are determined to continue to make our shareholders and customers happy. So, we are boosting our product portfolios and logistics, expanding our retail network across the country and revamping the Non Fuel Retail business,” the management said.
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