Conoil Plc, one of Nigeria’s largest petroleum marketing businesses, reported a double-digit percent growth in earnings in the first half of 2022 despite a considerable reduction in its topline performance during the period under review. Profit during the period soared above $4.3 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).
Adenuga, the chairman of Conoil and the founder of Globacom, the second-largest telecom service provider in Nigeria, is a leading oil mogul and telecom tycoon. He holds a majority 74.4-percent stake in the oil marketing business.
According to the company’s half-year financial report, profit increased 70.5 percent to N1.81 billion ($4.35 million) in the first half of 2022 from N1.06 billion ($2.55 million) in the first half of 2021 despite a double-digit decline in revenue during the time under review.
Despite a 16.8-percent drop in revenue from N67.64 billion ($162.8 million) to N56.24 billion ($135.3 million), the group’s cost-optimization strategies, which reduced sales-related, administrative and distribution costs, resulted in a significant increase in earnings as the management continued to create value for shareholders.
As a result of the resilient financial performance, total assets increased from N54 billion at the start of the year to N63.15 billion ($152 million) as of June 30, while retained earnings increased from N17.62 billion ($42.4 million) to N19.43 billion ($46.7 million).
Conoil’s remarkable success in 2021, when earnings rose by 114 percent from N1.44 billion ($3.46 million) in 2020 to N3.08 billion ($7.41 million) at the end of 2021, is what drove the company’s earnings increase in the first half of 2022.
Adenuga, who owns 74.4 percent of Conoil through Conpetro Limited, received a N1.29-billion ($3.1 million) dividend from the oil marketing firm as a portion of the dividend distributed to shareholders.
