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Latest results show Conoil is getting squeezed out


Petroleum marketer, Conoil Plc, late on Friday, released its financial statements for the year ended December 2017. The statement shows revenue increased by 35% from N85 billion in 2016 to N115 billion in 2017.

However, Profit before tax dropped by 46% from N4.2 billion in 2016 to N2.3 billion in 2017. Profit after tax fell similarly from N2.8 billion in 2016 to N1.5 billion in 2017. The company has proposed a final dividend of N2 per share, according to the statement.

Conoil is one of Nigeria’s major petroleum marketers. Other include NIPCO, Total, Mobil, and Forte Oil. 

Conoil Plc (formerly National Oil and Chemical Marketing Plc) was incorporated in 1960 as a private limited liability company. The company was converted to a public company on the 29th of August, 1991.

Conoil Plc closed at N31.80 on Friday’s trading session up 13.5% year to date.

Major marketers are delineated by their large networks of petroleum stations across the country. A comparison with major marketers listed on the Nigerian Stock Exchange (NSE) shows that the company is lagging.

Least Revenue

Conoil had the least revenue among the major marketers despite the increased revenue. The company made N115 billion as revenue in 2017.

Total was the market leader with financial year (FY) 2017 revenue of N288 billion. Next to it was Forte Oil Plc with N129 billion.

Profitability shows the same pattern

Conoil also made the least profit among the major marketers. The company earned a profit after tax of N1.5 billion for the 2017 FY. The drop in profit, however, was due to the absence of subsidy payments which occurred in 2016.

Forte Oil had the highest profit after tax of N12.2 billion, though one must discount the contribution of the Geregu Power Plant to its bottom line.

Total had the highest with a profit after tax of N8 billion. Closely on its trail was 11 Plc with a profit after tax of N7.5 billion.

Playing third fiddle in the lubricant space

Oil marketers have turned their focus to higher margin products, such as lubricants, to increase their bottom-lines, pending a full-scale deregulation of the industry.

Conoil had a slight drop in revenue from lubricants from N5.1 billion in 2016 to N5 billion in 2017.

Earnings from lubricants for Total increased from N38.8 billion in 2016 to N45.4 billion in 2017.  

Closely on its trail was Forte Oil with a revenue increase from N11.4 billion to N12.1 billion in 2017.  

Mobil Oil did not provide a breakdown of white product (regular petroleum products) and lubricant revenue.

Going forward

The increasing financial burden of the under-recovery (a diplomatese for subsidy) by the Nigerian National Petroleum Corporation (NNPC) means the likelihood of a price increase in 2019 after the general elections. The Dangote refinery is also expected to be completed in 2019. 

These events will give companies operating in the downstream sector some breather.

Should Conoil not restrategize, it may be left behind in what promises to be a tight race.


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