Home » Nigerian billionaire Mike Adenuga’s petroleum company posts $3.9 million in profit for 9M 2021

Nigerian billionaire Mike Adenuga’s petroleum company posts $3.9 million in profit for 9M 2021

by Omokolade Ajayi

Nigerian petroleum marketing company Conoil Plc has posted N1.6 billion ($3.9 million) in profit in the first nine months of its current accounting reference period (2021) on the back of a growth in sales volume driven by a resurgence in demand for petroleum products.

During the nine-month period, the Nigerian oil marketing company reported a 14.6-percent growth in revenue from N88.1 billion ($214.2 million) in 2020 to N101 billion ($245.6 million) on the back of a strong recovery in the demand for oil and petroleum products in the country, while profit surged by 43.5 percent.

The double-digit growth in profit from N1.1 billion ($2.7 million) last year to N1.6 billion ($3.9 million) during the nine-month period was underpinned not only by strong growth in revenue, but through an optimal mix of cost strategies that led to a reduction in operating expenses.

These strategies spurred a reduction in finance costs from N826.8 million ($2 million) in 2020 to N479.9 million ($1.2 million), while administrative expenses narrowed from N4.3 billion ($10.4 million) last year to N3.9 billion ($9.5 million) in 2021.

Conoil is a Nigerian petroleum marketing company, operating under the leadership of billionaire businessman and Globacom Founder Mike Adenuga, who holds a 74.4-percent stake in the firm.

In addition to the sale of regulated gasoline, kerosene, diesel, aviation fuel and low-pour fuel, the oil firm also produces and markets lubricants under the brand name, “Quatro.”

In the first nine months of 2021, the petroleum marketing company was able to generate a total of N94.3 billion ($230 million) in revenue from the sale of white products and N6.7 billion ($16.3 million) from the sale of lubricants across Nigeria.

Compared to last year’s figures, revenue from sales of white products and lubricants improved by 14 percent and 24 percent respectively.

As of press time, Nov. 1, shares in the oil company on the Nigerian bourse were trading at N25.50 ($0.062), 22.3-percent higher than their opening price of N20.85 ($0.0507) at the beginning of this year.

At the current price valuation, the market value of Adenuga’s 74.4-percent stake is valued at N13.2 billion ($32 million). The billionaire earned a total of $1.88 million (N774.4 million) in dividends from his stake in the petroleum marketing company this year.

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