Conoil PLC

Conoil Grows Half-Year Profit by 97per cent

2011-Aug-17
Conoil Plc has rekindled its first quarter glowing performance with yet another impressive outing for the first half of the year.

Unaudited report of the oil marketing giant from January – June 2011 and approved by the Nigerian Stock Exchange showed that its profit before tax rose from N1.78 billion in 2010 to N3.50 billion in 2011 representing 97per cent increase.

Another major highpoint of the six-month scorecard of the downstream company was the 86 per cent rise in turnover from N42.91 billion in 2010 to N79.9 billion in 2011 while profit after tax increased by 98 per cent from N1.21 billion in 2010 to N2.39 billion in 2011.

Industry analysts and watchers of the capital market are of the opinion that, going by this excellent performance, the company will end up with higher dividend for its shareholders at the end of the current financial year compared to what it paid last year.

The result showed huge improvement on the company’s first quarter result indicating that it would surpass its projected profit of N6.5 billion for the current financial year. The shareholders are therefore guaranteed bountiful harvest in line with Dr. Mike Adenuga, Chairman, Board of Directors’ forecast at its last annual general meeting when he affirmed that the company would record triple growth rate in 2011 and deliver superior shareholder value.

According Dr. Adenuga, “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.”
Commenting on the company’s re-assuring performance, Dr Adenuga hinted that management’s effort in the second half of the year would be doubled to drive its potentials to the fullest towards making its business more profitable through aggressive product penetration of the market while enlarging its customer base.

He reiterated the Board’s commitment in partnering with the management to sustain its policy of consistent annual returns on investment while implementing further performance enhancing initiatives that will result in attractive profit level and cash generation. He added that the focus is to achieve the company’s business plans, create competitive advantage and deliver long term benefits for all its stakeholders.

The foundation for the improved result, according to the downstream oil giant, is hinged on the huge investment committed to expansion of its business, upgrade of its facilities and equipment, optimization of resources and elimination of waste. One major component of its expansion initiative, it would be recalled, was the construction of a massive depot in Port Harcourt, Rivers State which is meant to complement its flagship depot in Apapa, Lagos. The ultramodern depot in Port Harcourt has produced seamless product supply to the eastern and northern parts of the country with significant impact on its bottom line.

The company has also consolidated its dominance of the high margin business of lubricants in the downstream sector of the industry with additional state-of-the art blending plants in Apapa and Port Harcourt. Back to news