Conoil Reports 44.4% Profit Slide In 2017, Offers N2 Dividend

The board of petroleum products marketing giant- Conoil Plc, on Friday presented its audited financials for the year ended December 31, 2017, reporting that net profit fell by almost half of the prior year’s level, despite a 35.9% growth in sales revenue.
Consequently, the directors have recommended a dividend of N2 per share, almost all of the N2.27 earned per share for the period, just as shareholders’ fund dropped marginally by 3.1%.
According to the report, revenue grew to N115.513bn from N85.023bn, all of which came from the sale of petroleum products; while cost of sales increased by N31.581bn or 44.55% from N70.882bn in 2016, to N102.463bn; resulting in gross profit of N13.049bn, a decline from N14.14bn reported in the prior year.
Other operating income, mainly revenue from rent received from letting out its property and service income or commission from dealers for the use of company property at service stations, rose slightly to N2.522bn from N2.28bn; just as other gains (foreign exchange gain) climbed to N2.06bn from N155.237m.
Distribution expenses dropped to N1.995bn from N2.534bn, with the bulk being the N1.896bn freight costs, which dropped from N2.356bn and marketing expenses that dropped from N178.347m to N98.795m.
Administrative expenses wiped out the slight growth in “other operating income and “other gains,” rising by N3.2bn or 40.02% from N7.995bn to N11.195bn. The lion’s share went into litigation claims, which soared from N1.575bn to N6.515bn; followed by N1.8bn in staff cost, a slight drop from N1.908bn in 2016.
Finance cost rose from N1.764bn to N2.137bn, being mainly the N2.134bn interest on bank overdraft, compared to N1.762bn in 2016.
Profit before tax declining to N2.304bn, as against previous year’s N4.28bn, representing a 46.2% decline.
The net profit would have been less, but for the almost 50% reduction in tax expenses for the year, which dropped to N726.12m from N1.442bn; resulting in after tax profit of N1.578bn, as against the N2.837bn recorded in 2016.
According to a statement by Conrad Eberemu, the Company Secretary/Legal Adviser earlier, register of shareholders is to be closed from June 18 to 22, 2018; while dividend warrants would be dispatched on July 23, 2018 to those whose names appear in the register of members at the close of business on June 14. This will however be subject to approval by shareholders at the 48th annual general meeting slated for Friday July 13, 2018.