Conoil declares N9.9bn profit in 2023, proposes N2.43bn dividend

Conoil Plc has declared profit after tax of N9.87 billion in 2023 financial year, about 99per cent growth  from N4.96 billion declared in 2022.

According to the company’s audited financial statement for 2023, the company posted a revenue of N201.4 billion, marking a 53per cent growth from the N131.4 billion revenue posted in 2022.

The company posted a gross profit of N19.8 billion, representing a 42per cent growth from the N14 billion gross profit posted in 2022.

There was a slight decline in the gross margin, from 10.66per cent as of FY 2022 to 9.85per cent as at FYE 2023.

The company will pay dividends of N3.5 per share, amounting to a dividend payout of N2.43 billion.

Conoil derived 97% of its revenue, amounting to N195 billion, from the sale of white petroleum products, including PMS, diesel, low-pour fuel oil, jet fuel, and kerosene, with the remaining 3% coming from lubricant sales.

The company’s petroleum purchases in 2023 increased by 68% from the previous year, rising from N109.4 billion in 2022 to N183.8 billion.

The company also generated N1.54 billion in FX gains during the fiscal year.

A review of the company’s balance sheet shows a 29per cent increase in trade and other receivables to N65.6 billion from N51 billion as of 2022. Part of the trade receivables include N34.3 billion from some of its trade debtors.

During the year, the company’s borrowings through overdraft hit N32 billion marking a 461% increase from the N5.7 billion overdrafts as of FYE 2022. According to the financial statement, the average interest rate on bank overdrafts in 2023 was 19per cent, in contrast with 14.7per cent in 2022.

It was also noted that the overdrafts were necessitated by a delay in outstanding subsidy claims from the Federal Government.