Billionaire Mike Adenuga's listed oil firm posts $60.3-million revenue in Q1 2024

Omokolade Ajayi -

Key Points:

  • Conoil Plc, led by Mike Adenuga, saw Q1 2024 revenue soar to $60.3 million, up 160.1% from the previous year.
  • Sales of petroleum products like PMS and lubricants drove Conoil’s revenue surge, totaling N90.94 billion ($60.3 million).
  • Despite rising costs, Conoil’s Q1 2024 profit after tax grew to N4.34 billion ($2.86 million), bolstering retained earnings.

Building on a robust 2023 financial performance, Conoil Plc, the Nigerian Exchange-listed petroleum marketing company controlled by billionaire businessman Mike Adenuga, reported significant revenue growth in the first quarter of 2024. The company’s revenue soared above $60 million, cementing its position among the leading players in the oil and gas industry.

According to figures in the company’s recently published unaudited financial statements, Conoil’s revenue in the first quarter of 2024 surged by 160.1 percent, rising from N34.97 billion ($23.2 million) in Q1 2023 to N90.94 billion ($60.3 million) in Q1 2024.

Increased sales across product portfolio drive growth

The triple-digit revenue growth was primarily driven by higher sales of Premium Motor Spirit (PMS), Aviation Turbine Kerosene (ATK), Dual Purpose Kerosene (DPK), Low-pour Fuel Oil (LPFO) and Automotive Gasoline/grease Oil (AGO), which totaled N80.12 billion ($52.8 million) during the period, up from N33.62 billion ($22.15 million) in the prior-year quarter.

The company’s lubricant sales also saw growth, increasing from N1.35 billion ($0.89 million) in Q1 2023 to N2.036 billion ($1.34 million) in Q1 2024. The lubricants segment includes products such as Lubricants Transport, Lubricants Industrial, Greases, Process Oil, and Bitumen.

Conoil’s profit grows, costs up

Despite the rising input costs, Conoil’s gross profit increased from N6 billion ($4 million) in Q1 2023 to N9.28 billion ($6.1 million) in Q1 2024. However, the increase in gross profit was slower compared to the 160 percent revenue growth.

Operating costs also rose during the period, with distribution expenses increasing from N713.48 million ($0.47 million) to N1.11 billion ($0.72 million), and administrative expenses rising from N1.28 billion ($0.84 million) to N1.65 billion ($1.1 million). Despite these increases, the group’s profit after tax grew from N3 billion ($1.97 million) to N4.34 billion ($2.86 million).

Conoil’s diverse petroleum product line

Conoil, known for marketing a diverse range of petroleum products including diesel, kerosene, low-pour fuel, aviation fuel, and gasoline, is the first and largest indigenous oil marketing company in Nigeria. Under the leadership of Mike Adenuga, the company continues to achieve impressive financial milestones. In 2023, Conoil’s revenue climbed from N131.42 billion ($93 million) in 2022 to N201.39 billion ($142.4 million).

Adenuga, the chairman and founder of Globacom, Nigeria’s second-largest telecom service provider, holds a majority stake of 74.4 percent in Conoil. His investments in Nigeria’s oil and gas, banking, and telecom industries have significantly contributed to his $6.7 billion fortune, making him the country’s second-richest person and the fifth-wealthiest on the African continent.

Strong Q1 boosts retained earnings

The company’s strong financial performance in Q1 2024 has also resulted in substantial growth in retained earnings, which rose from N28.97 billion ($19.1 million) as of Dec. 31, 2023, to N33.32 billion ($22 million) as of Mar. 31, 2024. Additionally, the group’s total equity increased from N33.14 billion ($21.8 million) to N37.5 billion ($24.7 million).