Conoil Plc has recorded a 99% growth in its profit after tax to N9.87 billion in 2023, from N4.96 billion as of FY 2022.
According to the company’s audited financial statement for 2023, the company posted a revenue of N201.4 billion, marking a 53% growth from the N131.4 billion revenue posted in 2022.
The company posted a gross profit of N19.8 billion, representing a 42% growth from the N14 billion gross profit posted in FY 2022.
There was a slight decline in the gross margin, from 10.66% as of FY 2022 to 9.85% as at FYE 2023.
The company will pay dividends of N3.5 per share, amounting to a dividend payout of N2.43 billion.
Key Highlights FY 2023 vs FY 2022
- Revenue: N201.4 billion, +53% YoY
- Cost of sales: N181.6 billion, +55% YoY
- Gross profit: N19.8 billion, +42% YoY
- Profit before tax: N12.3 billion, +100% YoY
- Profit for the year: N9.9 billion, +99% YoY
- Earnings per share: N14.22, +99% YoY
- Total assets: N97.5 billion, +48% YoY
Commentary
Conoil derived 97% of its revenue, amounting to N195 billion, from the sale of white petroleum products, including PMS, diesel, low-pour fuel oil, jet fuel, and kerosene, with the remaining 3% coming from lubricant sales.
- The company’s petroleum purchases in FY 2023 increased by 68% from the previous year, rising from N109.4 billion in 2022 to N183.8 billion.
- The company also generated N1.54 billion in FX gains during the fiscal year.
- A review of the company’s balance sheet shows a 29% increase in trade and other receivables to N65.6 billion from N51 billion as of FYE 2022. Part of the trade receivables include N34.3 billion from some of its trade debtors.
- During the year, the company’s borrowings through overdraft hit N32 billion marking a 461% increase from the N5.7 billion overdrafts as of FYE 2022. According to the financial statement, the average interest rate on bank overdrafts in 2023 was 19%, in contrast with 14.7% in 2022.
- It was also noted that the overdrafts were necessitated by a delay in outstanding subsidy claims from the Federal Government.
Conoil legal troubles
Conoil Plc is currently in litigation with Nimex Petrochemical Nigeria Limited over claims of demurrage and interest totalling $3.44 million for petroleum product supplies dating back to 2007. The Federal High Court ruled in favour of Nimex, awarding $13.76 million, including interest at 21%.
However, Conoil has appealed the decision to the Court of Appeal in Abuja. Although, according to the company’s financial statement, N4.48 billion has been set aside for litigation claims.
