Conoil PLC

Conoil in good shape to deliver excellent value – Adenuga

2011-Jul-12
Chairman of Conoil Plc, Dr. Mike Adenuga has re-emphasised the company’s unwavering commitment to sustained growth momentum that would guarantee real value for customers and competitive returns for the shareholders.

Speaking at the company’s 41st annual general meeting in Ibadan on June 24, 2011, Adenuga reassured all stakeholders of the will and capability of the board and management to benchmark Conoil against the best global standards in order to make it a world-class company that every Nigerian will be proud of.

According to him, the future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability even in an unpredictable economic environment. “We are positive that Conoil is in good shape and continues to make progress towards delivering superior shareholder value. We plan to consolidate the progress we have made in the past years and leverage our unique position as Nigeria’s leading oil marketer,” he said.

For the financial period ended December 31, 2010, Conoil’s profit before tax rose by 20.7% from N2,312,367,000 in 2009 to N2,789,977,000; Net Assets increased by 13% 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. The board recommended a dividend of 200 kobo on every 50 kobo ordinary share, which is 33% improvement on the 150 kobo paid in the previous year.

Industry analysts forecast a much higher dividend this financial year because of the excellent performance recorded in the first quarter of 2011. In the unaudited trading results for the first quarter of 2011, 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.

Adenuga underlined his conviction in Conoil’s bright future, noting that it has consolidated its strength across the businesses by investing in new facilities and developing a new portfolio of excellent brands, supported by effective distribution machinery.

“Looking to 2011, we are focused on excellence in execution, advancing our growth projects and generating additional integration value. We are encouraged by the excellent growth opportunities in the ever-dynamic downstream sector. Our focus shall be on integrating our activities across the businesses, aligning them functionally to achieve operating efficiencies and significant improvement in earnings.”

He spoke of renewed efforts geared towards becoming the marketer of choice in the liquefied petroleum gas sector. According to him, Congas is making appreciable inroads in the cooking gas market, even as the company has launched strategies to penetrate markets in the hinterland.

“Our goal is to become the leading gas supplier in Nigeria and the only one that guarantees safety, quality, quantity and reliability – all of which translate to real value for money. We have robust strategies that have been tested under a variety of market conditions,” he said.

Reassuring the shareholders that their investment in Conoil is a wise one, Adenuga said: “We have set, for ourselves, some very challenging targets; but 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.

A major pointer to the promising fortunes of the foremost oil marketing company is the analysis of its five-year financial projections which shows that turnover will continue to look up during the period, rising to N118.8 billion in 2012, N127.5 billion in 2013, N136.43 in 2014 and N145.6 billion in 2015. Profit before tax is estimated at N4.75 billion in 2012, N5.09 in 2013, N5.5 billion in 2014 and N5.83 billion in 2015; while profit after tax 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.
  Back to news