Conoil PLC

Conoil Earns N506bn Turnover in 5 Years

2011-May-29
Foremost petroleum products marketer, Conoil Plc, recorded a total N506 billion in turnover in the past five years, reflecting the company’s sustainable growth and determination to maintain its enviable record of profitability and shareholder value.

The sterling performance was recorded between 2006 and 2010 during which it earned N91 billion; N87 billion; N124 billion; N102 billion and N103 billion respectively.

The management, in a statement made available to journalists, says the company has undertaken some strategic investment initiatives to ensure that the indices continue to look better, even in the face of the harsh operating environment in the downstream oil industry.

The company’s financial report for the year ended December 31, 2010, submitted to the Nigerian Stock Exchange and obtained by our correspondent, shows the profit before tax rose by 20.7% from N2,312,367,000 in 2009 to N2,789,977,000. There was also an increase of 13% in the Net Assets from N13,511,103,000 to N15,260,152,000. Turnover recorded a marginal increase from N101,853,173,000 in 2009 to N102,878,494,000; while the Operating Profit on ordinary activities before taxation and exceptional items grew by 6.2% from N3,784,963,000 to N4,020,931,000.

An analysis of its five-year financial projections shows that turnover will rise to N118.8 billion in 2012, N127.5 billion in 2013, N136.43 in 2014 and N145.6 billion in 2015. PBT is estimated to peak at N4.75 billion in 2012, N5.09 in 2013, N5.5 billion in 2014 and N5.83 billion in 2015; while PAT is expected to increase to N3.23 billion in 2012, N3.5 billion in 2013, N3.71 billion in 2014 and N3.96 billion in 2015.

A major pointer to the promising fortunes of the foremost oil marketing company is the substantial leap it recorded 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.

This impressive first quarter performance confirms a forecast by the Chairman, Dr. Mike Adenuga, that Conoil would record triple growth rate in 2011 and deliver superior shareholder value. “Given the commitment of our people and the burning desire to go the extra mile and be the best, we feel confident that 2011 will be a greater success,” he stated.

Industry analysts say the current upward trend in the growth pattern is a strong indication that the company may pay much higher dividend this financial year than what is proposed for 2010. The board recommended N1.4 billion dividend, as against N1,040,928,000 paid in the previous year. This translates to 200 kobo on every 50 kobo ordinary share, which is 33% improvement on the 150 kobo paid in the previous year.

One major boost in the company’s expansion initiative was the construction of a massive depot in Port Harcourt, Rivers State, which complements its flagship depot in Apapa, Lagos. Located near the free port zone of Onne, the ultramodern facility has been providing easy access to fuel imports, thereby easing the pressure on available jetties and other port infrastructures in Lagos.

The complex has a massive storage capacity for of all products namely, Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), ATK (aviation fuel), kerosene and bitumen and this has significantly impacted on fuel supply to the eastern part of the country.

The company, through the production and distribution of Liquefied Petroleum Gas (LPG), launched itself as a leader in the provision of services that are of world-class standards to consumers. The multi-million naira state-of-the-art LPG bottling plant located in Ikeja, Lagos, has the capacity to bottle 5,000 cylinders a day, to boost supply of cooking gas in the country, which at 0.5kg per person, is currently the lowest per capital LPG consumption in Africa.

As part of the strategic drive to shore up its bottom-line, Conoil has also repositioned its lubricants business, building two additional state-of-the-art oil blending plants in Apapa and Port Harcourt, all of which the management said had pushed up its production capacity significantly. The company also introduced into the market a new brand of engine oil called Okada Golden Super, which is manufactured specially for 4-stroke motorcycles and tricycles.

Explaining the company's expansion agenda, the management said: "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 to boost our income.”
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