Conoil’s pre-tax profit rises 218.9% to N5.98 billion in nine months of 2026

Conoil Plc reported a pre-tax profit of N5.98 billion for the nine months ended September 30, 2026, representing a 218.9% increase from N1.88 billion in the corresponding period of 2025, according to the company’s unaudited results-at-a-glance statement.

The company’s nine-month revenue rose to N280.12 billion from N203.83 billion, representing an increase of 37.4%, supported by growth in its white petroleum products business.

Profit after tax reached N5.31 billion, compared with N1.46 billion reported in the corresponding period of 2025.

However, the third-quarter performance was weaker, with pre-tax profit declining to N206.51 million from N774.99 million in the corresponding quarter of 2025.

Key Highlights

• Revenue: N280.12 billion (Up 37.43% YoY from N203.83 billion).
• Gross profit: N26.03 billion (Up 56.06% YoY from N16.68 billion, using the segment disclosures).
• Earnings per share: 765 kobo (Up 262.5% YoY from 211 kobo).
• Total borrowings: N64.80 billion (Up 18.03% from N54.90 billion as of December 2025).
• Total assets: N149.11 billion (Up 6.99% from N139.37 billion as of December 2025).
• Cash and bank balances: N9.09 billion (Down 29.59% from N12.91 billion as of December 2025).

Driving the numbers

Conoil’s nine-month financial performance was supported by higher revenue from its white petroleum products segment, which remained the company’s largest source of income.

• Revenue from white products increased by 39.87% to N274.26 billion from N196.09 billion in the corresponding period of 2025. This segment accounted for approximately 97.91% of total revenue during the period.
• In contrast, revenue from lubricants declined by 24.26% to N5.86 billion from N7.74 billion, accounting for approximately 2.09% of total revenue.
• The company’s Liquefied Petroleum Gas segment recorded no revenue during either period.

On the cost side, total cost of sales stood at N254.09 billion, compared with N187.15 billion in the prior-year segment disclosures.

Despite the increase in costs, gross profit expanded to N26.03 billion, with the gross profit margin improving to 9.29% from 8.18% based on the segment figures.

• Finance costs remained a significant expense, reaching N12.99 billion during the nine-month period.
• This absorbed a substantial portion of the company’s gross profit and continued to weigh overall profitability.
• Administrative expenses amounted to N5.21 billion, while distribution expenses stood at N1.85 billion.

The quarterly figures also reveal a slowdown in earnings. Although third-quarter revenue increased to N100.23 billion from N64.39 billion in the corresponding quarter of 2025, pre-tax profit declined by 73.35% to N206.51 million.

Profit after tax for the quarter also declined to N152.81 million from N608.36 million, highlighting pressure on profitability despite higher sales.

The balance sheet

On the balance sheet, Conoil Plc’s total assets increased by 6.99% to N149.11 billion as of September 2026, from N139.37 billion at the end of December 2025, largely driven by an increase in trade and other receivables.

• Trade and other receivables rose by 25.67% to N113.85 billion from N90.59 billion, more than offsetting the decline in inventories, which fell by 42.81% to N12.81 billion from N22.39 billion.
• Cash and bank balances also declined by 29.59% to N9.09 billion from N12.91 billion, while borrowings increased by 18.03% to N64.80 billion from N54.90 billion.
• Despite the growth in total assets, cash generation remained weak, with net cash generated from operating activities standing at N274.81 million for the nine-month period, compared with interest payments of N12.99 billion.

Meanwhile, the company’s net cash and cash equivalents position deteriorated to negative N55.71 billion from negative N41.99 billion at the beginning of the year, reflecting increased pressure on liquidity.

Overall, the balance sheet shows that Conoil’s asset growth was largely concentrated in receivables, while rising borrowings, substantial finance costs and declining cash balances continued to put pressure on its liquidity position despite stronger year-to-date profitability.

Market reaction

Conoil closed at N210.00 per share on Monday, November 2, 2026, compared with its opening price of N187.20 at the beginning of the year.

This represents a year-to-date gain of 12.2%, while its one-year return stood at 10.1%.