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Conoil management attributes profit growth to new investment initiatives


Management of Conoil Plc has attributed the rise in its performance indices to some new strategic investment initiatives, as its Profit Before Tax (PBT) for the financial year ended December 31, 2010 grew by 20.7 per cent from from N2,312,367,000 in 2009 to N2,789,977,000.

The management, in a statement made available to Vanguard, stated that the company has undertaken some strategic investment initiatives to ensure that the indices continue to look better, even in the face of the harsh operating environment in the downstream oil industry.

The company’s financial report for the year ended December 31, 2010, submitted to the Nigerian Stock Exchange shows an increase of 13 per cent in the net assets from N13,511,103,000 to N15,260,152,000.

Turnover recorded a marginal increase from N101,853,173,000 in 2009 to N102,878,494,000; while the Operating Profit on ordinary activities before taxation and exceptional items grew by 6.2% from N3,784,963,000 to N4,020,931,000.

Meanwhile, Conoil recorded a total N506 billion in turnover in the past five years, reflecting the company’s sustainable growth and determination to maintain its enviable record of profitability and shareholder value.

The sterling performance was recorded between 2006 and 2010 during which it earned N91 billion; N87 billion; N124 billion; N102 billion and N103 billion respectively.

An analysis of its five-year financial projections shows that turnover will rise to N118.8 billion in 2012, N127.5 billion in 2013, N136.43 in 2014 and N145.6 billion in 2015. PBT is estimated to peak at N4.75 billion in 2012, N5.09 in 2013, N5.5 billion in 2014 and N5.83 billion in 2015; while PAT is expected to increase to N3.23 billion in 2012, N3.5 billion in 2013, N3.71 billion in 2014 and N3.96 billion in 2015.

A major pointer to the promising fortunes of the foremost oil marketing company is the substantial leap it recorded in profit and turnover in the first quarter of 2011. The unaudited trading results for the period between January and March 31, 2011 which was submitted to the Nigerian Stock Exchange (NSE) showed that the company posted N1,742,945 billion profit before tax, a whopping 713.53% increase over the N214,245 million recorded in the corresponding period last year.

Also, the Profit After Tax (PAT) witnessed a similar trend with a sharp rise from N145,687 million in 2010 to N1,185,203 billion in the first quarter 2011; while the turnover, which was N21,071,554 billion between January and March 2010, appreciated by 77.02% to peak at N37,301,786 billion during the same period.


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