Mike Adenuga’s Conoil posts $2.58-million mid-year profit; earnings surge by 213 percent

Omokolade Ajayi -

Nigerian petroleum marketing company Conoil Plc has posted N1.06 billion ($2.58 million) in profits in the first six months of 2021. Compared to last year’s figures, its mid-year profit grew by 213.7 percent from N498.1 million ($1.21 million) in the first half of last year to N1.06 billion ($2.58 million).

At the same time, its revenue expanded from N57.46 billion ($139.63 million) to N67.6 billion ($164.27 million).

Conoil, previously known as the National Oil and Chemical Marketing until Conpetro acquired it in 2002, is a pioneer petroleum marketer in Nigeria. It is also the first company to market petroleum products in bulk.

Nigerian billionaire and Globacom Founder Mike Adenuga owns a controlling 74.4-percent stake in the company through Conpetro.

The oil company’s earnings in the first half of 2021 grew by 213.7 percent when compared with last year’s figures, while its revenue expanded by 17.7 percent.

Aside from the resurgence in oil demand, which led to double-digit growth in the company’s revenue in the first half of the year, the triple-digit surge in Conoil’s mid-year profit was also delivered off the back of effective, sustainable cost management.

Its cost management during the period helped contain its operating expenses, despite a 19-percent growth in its cost of sales, which grew faster than the near 18-percent growth in the company’s revenue.

The cost strategies resulted in a reduction in its operating expenses, as finance costs and administrative expenses declined by 56 percent and 13 percent, respectively, leading to a 213.7-percent growth in earnings.

As of press time, 7:30 PM (UTC), Aug. 5, Conoil shares on the Nigerian Exchange were worth N18.50 ($0.04495), 11.3-percent lower than its opening price of N20.85 ($0.05066) for the year.

At the current price valuation, the company’s market capitalization is valued at N12.84 billion ($31.2 million), while Adenuga’s 74.4-percent stake is valued at N9.55 billion ($23.2 million).