Conoil Plc continued to ride on the back of improved cost efficiency as the downstream oil major grew profit before tax by 54 per cent to N2.72 billion in the third quarter.
Key extracts of the nine-month report of Conoil for the period ended September 30, 2016 released yesterday at the Nigerian Stock Exchange (NSE) showed that the company optimised marginal growth of six per cent in sales to grow pre and post tax profits by 54 per cent and 51 per cent respectively.
The report showed that profit before tax rose by 54 per cent to N2.72 billion in third quarter 2016 as against N1.76 billion recorded in the comparable period of 2015. Profit after tax also increased by 51 per cent from N1.2 billion in third quarter 2015 to N1.81 billion in third quarter 2016. Total turnover had grown by six per cent to N63.95 billion as against N60.16 billion in corresponding period of 2015. Earnings per share thus increased by 51 per cent from N1.72 in third quarter 2015 to N2.61 by September 2016. Net assets per share also improved from N24.92 to N28.13.
The management of the company attributed the impressive results to efficient allocation of resources, long term and pain-staking strategic business planning and strict adherence and implementation of global operating standards in all its business processes.
The third-quarter performance further highlighted the steady profile of Conoil, after the downstream oil major bucked the industry trend to post impressive results in the previous 18 months. In the first half ended June 30, 2016, the company recorded profit before tax of N1.566 billion, representing a growth of 196 per cent from N528.5 million recorded in the corresponding period of last year. It also posted a 190 per cent increase in profit after tax from N359.4 million last year to N1.04 billion this year.
Against the background of the tough macroeconomic environment, the board of directors of Conoil had announced a gross dividend of N2.1 billion for the 2015 business year, 200 per cent increase on the previous payout. Shareholders will receive a dividend per share of N3 for the 2015 business year as against N1 paid for the 2014 business year.
Key extracts of the audited report and accounts for the year ended December 31, 2015 showed that profit after tax rose by 176.5 per cent from N834 million in 2014 to N2.3 billion in 2015. Profit before tax jumped by 125.1 per cent from N1.5 billion in 2014 to N3.4 billion in 2015. Earnings per share also rose sharply by 177 per cent to N3.33 in 2015 as against N1.20 in 2014. Shareholders’ funds increased from N16.1 billion in 2014 to N17.71 billion in 2015. Net assets per share closed 2015 at N25.52 compared with N23.19 in 2014.
Many analysts saw the performance so far this year as indicative of possible increase in payouts to shareholders, in line with the company’s assurance to continue to improve returns to shareholders.