Conoil PLC has released its third-quarter 2024 financial report, showing a pre-tax profit of N4.2 billion, a 30.82% increase from the N3.2 billion reported in the same period last year.
For the cumulative nine-month period ending September 30, 2024, Conoil’s pre-tax profit climbed significantly to N14.4 billion, marking a 30.64% year-over-year rise.
The company’s revenue also saw a notable uptick, surging 35.10% year-over-year in the third quarter to reach N68.5 billion, compared to N50.7 billion in 2023.
Conoil also reported a substantial rise in earnings per share (EPS) to N4.7 for the third quarter, marking a 35.90% increase from N3.5 in the previous year.
Key highlights (Q3 2024 vs. Q3 2023)
- Revenue: N68.5 billion, up 35.10% YoY
- Cost of sales: N60.7 billion, up 32.88% YoY
- Gross profit: N7.8 billion, up 55.23% YoY
- Administrative expenses: N1.1 billion, up 4.97% YoY
- Finance cost: N253.3 million, down 48.02% YoY
- Pre-tax profit: N4.2 billion, up 30.82% YoY
- Post-tax profit: N3.3 billion, up 36.02% YoY
- Earnings per share: N4.7, up 35.90% YoY
- Total Assets: N96.5 billion, down 0.93% YoY
Commentary:
Conoil’s revenue grew by 35.10% year-over-year in Q3 2024, reaching N68.5 billion, up from N50.7 billion in 2023. This increase was accompanied by a 32.88% rise in the cost of sales, which totalled N60.7 billion compared to N45.7 billion in the previous year.
Despite these cost increases, Conoil’s gross profit climbed to N7.8 billion, a substantial 55.23% improvement year-over-year from N5.0 billion.
The company reduced its finance costs by 48.02%, bringing them down to N253.3 million from N487.4 million last year, even as administrative expenses rose by 4.97% to N1.1 billion.
Conoil’s pre-tax profit for Q3 2024 surged by 30.82% year-over-year to N4.2 billion, contributing to a cumulative nine-month pre-tax profit of N14.4 billion.
Furthermore, post-tax profit rose by 36.02% year-over-year, reaching N3.3 billion compared to N2.4 billion in 2023, bolstering earnings per share by 35.90% to N4.7.
Asset, Liability, and Equity Overview
- As of September 30, 2024, Conoil reported total assets of N96.5 billion, a slight dip from N97.4 billion last year. This was primarily driven by adjustments in non-current assets, notably in property, plant, and equipment.
- However, the company saw a notable increase in total equity, which rose to N44.4 billion, due to improved retained earnings.
- Meanwhile, total liabilities decreased by 19.03% to N52 billion, largely due to a reduction in current liabilities.
Cash Flow Overview:
- For the nine-month period, Conoil generated N23.9 billion in net cash from operating activities, navigating significant shifts in working capital.
- Net cash used in investing activities was N1.6 billion, primarily allocated to the acquisition of property, plant, and equipment, while financing activities accounted for a cash outflow of N2.4 billion, reflecting interest payments.
- Overall, the net increase in cash and cash equivalents was N19.8 billion, improving the cash position by 96.04%.