Conoil incraeses profit by 176%, to pay N2.08bn dividend

Conoil Plc has announced 176 per cent increase over its last financial year profit despite the turbulence that rocked the nation’s economy and indeed, the downstream sector of the petroleum industry in 2015.

Following this impressive performance, the oil marketing giant has proposed a 200 per cent increase in dividend payout to its teeming shareholders.

The bumper dividend of N2.08 billion is expected to be ratified by the shareholders of the company at its annual general meeting. If approved, shareholders will get N3 kobo on every 50 kobo ordinary share, compared to N1 paid last year.

The company’s 2015 financial results obtained from the Nigerian Stock Exchange website showed an increase in profit after tax from N834 million in 2014 to N2.3 billion in 2015.

Its profit before tax increased from N1.5 billion to N3.4 billion representing an increase of 125 per cent.

The company’s earnings per share also rose sharply by 177 per cent to 333 kobo in 2015 from 120 kobo in 2014.

In a statement released by the company on Thursday, the management of Conoil attributed the strong performance to efficient management of resources, effective cost control policy, as well as reaping from its huge investment in the expansion and upgrade of its facilities.

“For us, the downstream sector remains fundamentally attractive and viable today and the future”, the statement declared.

“With our clarity of direction and focus, our Company’s long-term success is assured. We will sustain this improved performance and vigorously pursue our aspiration to remain the nation’s leading petroleum products marketer and one of the most profitable quoted companies,” the company added.

At the company’s general meeting last year, it would be recalled, Dr. Mike Adenuga Jr., the Chairman of Conoil did promise the shareholders that notwithstanding the tough challenges in the country, and indeed in the downstream petroleum sector, the Company would explore to the fullest, new opportunities that abound in the industry to its advantage.

Adenuga also assured investors of the company’s commitment to cost cutting measures in its operations, vast improvement in the quality of its products and services with a strong bottom-line as its focus.

“These measures”, the statement added, “have positively contributed to our successful outing to reward our loyal shareholders”.