Conoil Reports N13.806b Pre-Tax Profit, Revenue Surges by 60.45% in 2024

Lagos, Nigeria – Conoil Plc has announced a profit before tax of N13.806 billion for the 2024 financial year, marking a 12.45% year-over-year (YoY) increase from the N12.280 billion recorded in 2023.

The unaudited financial statements, obtained by REPORT AFRIQUE, reveal that the company’s revenue soared by 60.45% to N323.123 billion, up from N201.387 billion in 2023. This remarkable growth was primarily driven by its white products segment, which contributed 96% of total revenue and expanded by 62.42% YoY.

Financial Performance Highlights (2024 vs 2023)

• Revenue: N323.128 billion (+60.45% YoY)
• Cost of Sales: N294.720 billion (+62.33% YoY)
• Gross Profit: N28.407 billion (+43.25% YoY)
• Sales & Distribution Expenses: N4.991 billion (+80.63% YoY)
• General & Administrative Expenses: N5.728 billion (+27.54% YoY)
• Finance Cost: N3.883 billion (+98.58% YoY)
• Profit After Tax: N11.390 billion (+15.42% YoY)
• Earnings Per Share (EPS): N16.41 (+15.40% YoY)
• Cash & Cash Equivalents: N6.964 billion (-38.51% YoY)
• Total Assets: N113.570 billion (+16.51% YoY)
• Retained Earnings: N37.935 billion (+30.93% YoY)
• Total Equity: N42.107 billion (+27.04% YoY)

Investor Insights and Key Takeaways

Conoil’s strong revenue growth underscores its continued market expansion. However, with 98% of revenue concentrated in white products, the company remains highly exposed to oil price fluctuations. Expanding its lubricants and non-fuel segments, which currently contribute just 2% to total revenue, could improve long-term stability.

Profitability and Margin Pressures

Despite higher revenue, Conoil’s profit margins declined due to rising costs:

Gross profit margin dropped by 10.72% to 8.79%, as cost of sales surged faster than revenue.
Pre-tax profit margin fell by 30% to 4.27%, reflecting higher operating and finance costs.
Net profit margin declined by 28% to 3.52%, despite a 15.42% increase in profit after tax.
This indicates that operating expenses, finance costs, and cost of sales grew faster than revenue, putting pressure on profitability.

Balance Sheet Strength

Despite margin pressures, Conoil’s balance sheet remains strong, with rising assets and equity:

Total assets increased by 16.51% YoY to N113.57 billion, reflecting business expansion.
Equity grew by 27.04%, while retained earnings surged by 30.93%, suggesting that Conoil is reinvesting profits rather than relying heavily on external financing.
However, a 38.51% drop in cash and cash equivalents raises concerns about liquidity.

Stock Market Performance and Dividend Outlook

Conoil’s share price recorded a stellar 361% year-to-date (YtD) return in 2024, following a 217% YtD gain in 2023. This reflects strong investor confidence in the company’s performance.

However, as of January 2025, the stock price has remained flat, suggesting that investors are waiting for fresh catalysts, such as earnings reports or dividend declarations.

With a trailing dividend yield of 0.90% and an annual dividend payout of N3.50 per share, Conoil is expected to announce a dividend for the 2024 financial year, given its solid profitability and rising retained earnings.