Conoil grows H1 2016 profit by 190%

Conoil has announced an increase of 190 percent in profit after tax for the half year ended June 2016 (H1) despite instability that rocked petroleum industry in 2016.

The Company released its 2016 half year results via the Nigerian Stock Exchange (NSE) website on Friday, showing an increase in profit after tax from N359 million in H1 2015 to N1billion in H1 2016.

A 196 percent growth in Profit before tax which moved from N528.5 million in H1 2015 to N1.6billion in H1 2016, was also recorded. Consequently, the company’s earnings per share rose by 190 percent to N1.50 kobo in H1 2016 from 52 kobo in H1 2015.

Meanwhile, Conoil suffered a drop of eight percent in revenue from N43 billion in H1 2015 to N39.5 billion in H1 2016 following slow revenue generated from petroleum and e Liquefied Petroleum Gas (LPG).

The company’s management proposed N3.00 dividend for full year ended December 31, 2015 on the heel of impressive results.

The management of the company recently attributed the strong performance to efficient management of resources, effective cost control policy, as well as reaping from its huge investment in the expansion and upgrade of its facilities.

The management in a statement said, “For us, the downstream sector remains fundamentally attractive and viable today and the future.

“With our clarity of direction and focus, our Company’s long-term success is assured. We will sustain this improved performance and vigorously pursue our aspiration to remain the nation’s leading petroleum products marketer and one of the most profitable quoted companies,” the Company added.

At the Company’s general meeting last year, it would be recalled, the Chairman of Conoil, Dr. Mike Adenuga, promised the shareholders that notwithstanding the tough challenges in the country, and indeed in the downstream petroleum sector, the Company would explore to the fullest, new opportunities that abound in the industry to its advantage.

He also assured investors of the Company’s commitment to cost cutting measures in its operations, vast improvement in the quality of its products and services with a strong bottom-line as its focus.

Following the release of its financial results since last week, the downstream oil major’s share price rose by 33.84 percent or N8.05 last week to settle at N31.84 per share.