Conoil Grows Net Profit By 53.9% In 2019Q1

The management of petroleum products market giant- Conoil Plc, on Wednesday, presented its financials for the first quarter ended March 31, 2019, showing that sales revenue increased by 3.8% from N31.318bn to N35.637bn. A breakdown of the sales revenue showed that the sale of white products continue to contribute the lion’s share, pooling N34.023bn or 95%, up from N29.881% in 2018; while the lubricant business contributed N1.613bn. Cost of sales stood at N32.677bn, from N28.257bn in the preceding first quarter, with white products accounting for N31.538bn or 97%, and lubricants, N1.139bn; following which gross profit dropped from N3.06bn to N2.959bn. White products contributed N2.485bn, leaving lubricants with just N474.016m.
Other operating income dropped by 67.95% from N96.424m in 2018 to N30.9m; with service income accounting for N30.9m, compared to the situation last year when it pooled N55.042m, in addition to rental income of N30.9m. The company also reported zero interest from bank deposits, which stood at N10.482m in 2018.
Distribution expenses, however, fell from N650.79m to N449.467m, with freight costs sliding from N599.22m in 2018 to N304.199m, while marketing expenses increased from N51.57m to N145.268m. Administrative expenses reduced marginally from N1.669bn in the 2018Q1 to N1.556bn.
Finance cost which was entirely the N506.523m interest on bank overdraft, as against N525.998m in 2018Q1.
According to the management in their note to the account, “the overdraft was necessitated by delay in payment of subsidy claims by the Federal Government on importation/purchase of products for resale in line with the provision of Petroleum Support Fund Act for regulated petroleum products.”
This left profit before tax at N478.202m, 53.9% better than the N310.73m in the prior Q1.
Income tax expense for the period increased by 53.89% from N99.434m to N153.025m; resulting in a net profit of N325.178m from N211.295m, which translated to Earnings Per Share of 47 kobo, compared to the previous 30k.