Conoil Reports 114% 2021 Net Profit Surge, Offers N2.50 Dividend

The directors of petroleum products marketing giant, Conoil Plc, on Tuesday presented its audited report for the full-year ended December 31, 2021, indicating that profit before and after loss significantly outpaced revenue, following which they are proposing a dividend payout of N1.734bn, or N2.50 per share, from the earnings per share of N4.44; compared to the N1.04bn, representing N1.50 distributed in the preceding year from the previous N2.08 EPS, for approval at the forthcoming annual general meeting.

Specifically, revenue growth for the period was constrained at 7.9% from N117.47bn in the corresponding full-year of 2020, to N126.726bn; while profit after tax soared to N3.082bn, 114% better than the N1.44bn reported in the preceding full-year. The dividend proposed represents a growth of 66.7% in payout.

A further breakdown of the result showed that cost of sales for the period increased from N107.652bn to N115.565bn; with white products remaining the biggest top line and cost drivers at N117.003bn or 92% and N108.762bn or 94%; compared to N109.56bn or 93% and N7.91bn and 7% in 2020; followed by lubricants with just N9.723bn or 8% and N6.802bn or 6%; as against N106.547bn or 94% and N6.101bn or 6% respectively. Gross profit at N11.161bn, up from N9.818bn, came mainly from white products at N8.24bn, up from N8.013bn and N2.92bn, compared to N1.808bn from lubricants in the prior full-year.

Other operating income increased from N151.738m to N172.014m, boosted by service income which rose from N109.121m to N161.852m; while rental income fell from N20.779m to N10.153m; and interest from bank deposits, from N21.837m to just N9m within the period. Other gains (being exchange gain) dropped from N134.385m to N115.964m; distribution expenses grew to N2.393bn from N2.071bn, with freight costs of N2.26bn accounting for the lion’s share, from N1.848bn; with marketing expenses dropping from N233.14m to N133.091m. Administrative expenses for the period fell to N4.466bn from N5.182bn in the corresponding period of 2020, mainly the N2.182bn staff cost, which reduced marginally from N2.216bn.

Finance cost rose from N704.573m to N757.54m; resulting in profit before tax of N3.831bn, up from N2.145bn; while income tax expense increased to N749.068m from N705.308m.