Conoil reports N13.806 billion pre-tax profits, up 12.45% YoY

The unaudited Group financial statements, reviewed by Naijaonpoint, show that the company’s revenue surged by 60.45% to N323.123 billion, up from N201.387 billion in 2023.

The significant revenue increase was primarily driven by revenue from its white products, which accounted for 96% of total revenue and grew by 62.42% YoY

Key highlights (2024 vs 2023 FY)  

Investor insight and takeaways 

Revenue growth is strong. However, with 98% of revenue concentrated in white products, Conoil may be vulnerable to oil price fluctuations.

Expanding into lubricants or non-fuel segments could improve long-term stability.  Revenue from lubricants contributes a paltry 2% to total revenue.

Margin pressures 

Despite revenue growth, Conoil experienced a drop in profit margins. Gross reflecting rising costs:

This suggests that the company’s costs, especially the cost of sales, finance costs, and operating expenses, grew at a faster pace than its revenue, which pressured profitability.

Balance sheet strength:   

Conoil Plc’s balance sheet demonstrates resilience, with stronger assets, rising equity, and improved short-term financial stability.

Market performance

Conoil’s share price delivered an outstanding 361% year-to-date (YtD) return in 2024, building on an already impressive 217% YtD return in 2023.

This reflects strong investor confidence 

However, as of January 2025, the share price has remained flat, suggesting that investors are waiting for new catalysts, such as earnings announcements or dividend declarations before making further moves.

However, as of January 2025, the share price has remained flat, suggesting that investors are waiting for new catalysts, such as earnings announcements or dividend declarations before making further moves.

With an annual dividend of N3.50, the stock offers a trailing dividend yield of 0.90%.

Given its profitability growth and strong retained earnings, Conoil is expected to pay a dividend for the 2024 financial year