Stake of Nigeria’s second richest man Mike Adenuga in Conoil gains $2.26 million in 21 days

The stake of Nigeria’s second wealthiest man Mike Adenuga in Conoil Plc has increased by $2.26 million (N929.34 million) to $25.76 million since the start of June.

The gains follow a surge in the oil marketing company’s share price, as investors and traders alike laud its financial performance for Q1 2021 and remain optimistic about the market as crude oil prices reach their highest level since April 2019 at $74 per barrel.

In Q1 2021, Conoil posted profits of $1.03 million (N423.93 million), which translates to earnings per share of $0.001484 (N0.61).

This represents a 62.8-percent increase in profits compared to Q1 2020, when the company reported profits of $633,550 (N260.39 million).

The result translates to earnings per share of $0.000925 (N0.38).

These fundamentals have been cemented by a recent report by BofA Global Research that tighter oil supply and demand balances in 2022 could push oil to $100 per barrel.

In reaction, Conoil shares on the Nigerian Stock Exchange have surged from $0.046 (N18.70) to $0.050 (N20.50) per share between June 1 and 22, respectively.

Adenuga is Africa’s fourth richest man with a real-time net worth of $6.3 billion. He is the majority shareholder in Conoil, with an equity stake of 74.4 percent of the company’s total issued shares.

In line with the recent rise in Conoil shares, the value of his 516,298,603 shares has increased from $23.50 million (N9.65 billion) on June 1 to $25.76 million (N10.58 billion) as of the opening of the local bourse this morning.

This translates to a gain of $2.26 million (N929.34 million) for the telecom mogul.

The billionaire, who made his first million in 1979 at age 26 selling lace and distributing soft drinks, is set to pocket a dividend of $1.88 million (N774.4 million) from his stake in Conoil.