Conoil Declares PBT of N1.8bn for financial year ended

Conoil, one of the nation's major oil marketing company in the downstream sector of  Oil & Gas Industry has declared a profit before tax of N1.8billion for the financial year ended September 30, 2015. Also, profit after tax dropped to N1.2 billion from the  N1.4 billion in the corresponding period of 2014. However, its assets increased from N86 billion in 2014 to N96billion in 2015.

 Conoil, in a statement attributed its modest performance to focused strategy and cost control mechanisms.

"We returned a good performance notwithstanding the difficult operating environment due primarily to the efficient product procurement process put in place in the second half of the year. This efficiency translated to high profit margin on product sales. The profit for the period would have been much better save for the high finance cost, consequent upon the long outstanding large receivable from the Petroleum Support Fund," the company said.

Challenges in the downstream have been overwhelming and analysts are of informed opinion that if the government continues to prolong the payment of long overdue subsidy refunds outstanding to the marketers, their profitability will continue to dwindle and return on investments for shareholders adversely affected.Despite the gloomy picture, Conoil  promised to continuously transform its business and prepare for the increasingly fierce competition.

"We will consistently pursue initiatives that will enable our brands, processes and people drive our corporate vision and ultimately drive value for our shareholders," as said 
Chairman of Conoil Plc,  Mike Adenuga  recently assured stakeholders of a rosy future for their investments, saying that in spite of the  challenges facing Nigeria at the moment, the future of the nation’s economy remains very bright.

Adenuga, who spoke at the company’s 45th annual general meeting in Uyo, Akwa Ibom State,declared: “Our company’s long term future is assured beyond any doubt. Conscious efforts will be directed at achieving better execution, especially in the areas of marketing and customer management. Greater attention would be devoted to cutting costs of operations in the different segments of the company’s business, while maintaining and improving on the quality of its products and services.” 

As reported by ThisDay