Despite posting excellent financial results in the first half of 2022, Conoil Plc’s market capitalization has dropped by millions of dollars over the past 110 days, resulting in significant losses for shareholders like Nigerian billionaire and telecom tycoon Mike Adenuga.
According to information compiled by Billionaires.Africa, Adenuga’s stake in Conoil’s market value has decreased by N4 billion ($9.2 million) over the past 110 days, reducing the gains he has made so far this year from his investment in the firm to N2.32 billion ($5.34 million).
Conoil is a petroleum marketing firm that sells diesel, kerosene, low-pour fuel, aviation fuel, and gasoline. Additionally, it produces and markets lubricants under the “Quatro” brand name. In recent years, it has been able to grow its retained earnings above N19 billion ($45.7 million).
According to its financial report for the first half of 2022, the company’s profit increased by 70.5 percent from N1.06 billion ($2.55 million) in the same period during the previous year to N1.81 billion ($4.35 million).
Adenuga, the chairman of Conoil and the founder of Globacom, the second-largest telecom service provider in Nigeria, holds a majority 74.4-percent stake in the petroleum marketing firm.
As of press time on Sept. 16, shares of the top oil marketing company were trading at N26.5 per share, giving the Adenuga-led business a market capitalization of N18.4 billion.
Since May 30, the price of Conoil shares on the Nigerian Exchange has decreased by 20.45 percent, from N34.25 ($0.07866) per share to N26.5 ($0.06086), as investors continue to keep an eye on important data points unrelated to earnings, as inflation soars above record levels and central banks continue to raise interest rates to fend off inflationary pressures.
As a result of the sustained decline in the company’s shares, the market value of Adenuga’s stake in Conoil has decreased by N4 billion ($9.2 million), falling from N17.68 billion ($40.61 million) on May 30 to N13.68 billion ($31.42 million) at the time of writing this report.