Conoil Nigeria Plc recorded a sharp contraction in profitability for the 2025 financial year, with profit before tax plunging by 77.03% to N2.53 billion from N11.00 billion in the prior year.
The figures were contained in the company’s unaudited financial statements for the year ended December 31, 2025.
The steep decline reflects a mix of weaker operating performance and a sharp rise in borrowing costs, even as the oil marketer expanded its balance sheet and asset base during the period.
The results point to mounting pressure from finance expenses, which eroded operating gains and significantly reduced shareholder returns.
Despite cost-saving efforts in some expense lines and notable growth in total assets, increased leverage weighed heavily on overall earnings performance.
Key Highlights (FY 2025 vs FY 2024):
- Revenue: N301.72 billion, -6.62% YoY
- Cost of Sales: N278.81 billion, -6.05% YoY
- Gross Profit: N22.91 billion, -13.06% YoY
- Operating Profit: N12.90 billion, -13.73% YoY
- Finance Costs: N10.38 billion, +162.46% YoY
- Profit Before Tax: N2.53 billion, -77.03% YoY
- Profit After Tax: N2.01 billion, -77.10% YoY
- Earnings Per Share: N2.90, -77.06% YoY
- Total Assets: N139.01 billion, +20.93% YoY
- Total Liabilities: N99.94 billion, +32.44% YoY
- Borrowings: N54.24 billion, +89.17% YoY
- Shareholders’ Equity: N39.07 billion, -1.06% YoY
What the data is saying:
The sharp drop in pretax profit was largely driven by a surge in finance costs, which more than doubled during the year and offset much of the company’s operating income. Operating profit also weakened, reflecting pressure on margins amid a softer revenue environment.
Finance costs jumped by 162.46% year on year to N10.38 billion, compared with N3.95 billion in FY 2024.
Operating profit declined by 13.73% to N12.90 billion, despite a sharp reduction in selling and distribution expenses.
Revenue fell by 6.62% to N301.72 billion, while gross profit dropped by 13.06% to N22.91 billion.
The company’s debt-to-equity ratio rose to 138.8% from 72.6%, underscoring the impact of higher leverage on earnings.
Overall, the spike in borrowing costs effectively wiped out a significant portion of operating gains, resulting in a steep fall in profitability for the year.
Balance sheet expands despite earnings pressure:
Despite the earnings decline, Conoil recorded strong balance sheet growth in FY 2025, driven largely by increased borrowings and higher asset values.
- Total assets rose by 20.93% to N139.01 billion, supported by growth in cash holdings and fixed assets.
- Total liabilities increased by 32.44% to N99.94 billion, reflecting an 89.17% surge in borrowings to N54.24 billion.
- Property, plant and equipment rose by 150.73% to N9.96 billion, while cash and cash equivalents increased by 79.03% to N13.00 billion.
- Trade and other receivables climbed by 27.48% to N91.66 billion.
Shareholders’ equity edged down slightly by 1.06% to N39.07 billion.
Market reaction:
Conoil’s weak earnings performance has been reflected in its stock price movement on the Nigerian Exchange. The shares have underperformed the broader market so far in 2026, amid investor concerns over profitability and rising leverage.
The stock has broadly traded flat, closing at N169.00 per share on Thursday, February 5, 2026.
It opened the year at N187.20 but has since declined by 9.72% year to date.
Over the past three months, the stock traded 2.75 million shares across 6,123 deals, valued at N468 million.
Overall, while Conoil continues to expand its asset base and market footprint, rising finance costs and higher leverage remain key risks to earnings sustainability and investor confidence going forward.
