BY PETER EGWUATU
Following the consistency in its performance for the current financial year 2011, capital market operators have predicted that Conoil Plc might surpass its N6.5 billion full year profit forecast.
The operators have predicted that the company will end the year with an increase of 65 per cent profit over its last year’s profit
Specifically, the third quarter result submitted to the Nigerian Stock Exchange (NSE) showed significant increase of 78 per cent in its Profit Before Tax (PBT) from N2.6 billion in 2010 to N4.6 billion in 2011.
The company also posted 78 per cent increase in Profit After Tax (PAT) from N1.7 billion in 2010 to N3.1 billion in 2011, while it recorded turnover of N120.3 billion in 2011 from N64.8 billion in 2010, representing a whopping 86 per cent increase.
According to a capital market operator, who preferred to remain anonymous, said, “The performance is very much in line with the commitment of our Board and Management to deliver superior shareholder value at all times,”
A recent in-depth market analysis by a capital market operator, Apel Asset and Trust Limited, had submitted that Conoil’s stock price was grossly under-valued. It further advised discerning investors to take advantage of the company’s prevailing low share price and invest in its stocks for possible bountiful harvest in the nearest future.
Meanwhile, while, the company’s first quarter result showed 714 per cent jump in profit before tax from N214million in 2010 to N1.3 billion in 2011 and a sharp increase in profit after tax from N145.7million in 2010 to N1.2 billion in 2011, its second quarter recorded 98 per cent increase in profit after tax from N1.21 billion in 2010 to N2.4 billion in 2011. Profit before tax also rose from N1.8billion to N3.5 billion, representing 97per cent increase.
The Chairman of Conoil Plc, Dr. Mike Adenuga, while previewing the company’s performance for 2011 at its last annual general meeting, predicted that the company would record triple growth rate and deliver superior shareholder value. “We have set for ourselves, some very challenging targets; but given the commitment of our people and the burning desire to go the extra mile and be the best, we feel confident that 2011 will be a greater success,” he had pledged.