Conoil Plc posts N1.6 billion profit, N75.8 billion turnover in Q3

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Conoil Reiterates Commitment To Sustain Higher Values For Shareholders
Conoil Reiterates Commitment To Sustain Higher Values For Shareholders

Conoil Plc. a player in the downstream sector of the Oil & Gas industry released its Q3 2018 results for the period ended September 30th, 2018 to the market on 15th October 2018. The firm posted a profit of N1.6 billion in its third quarter performance, against N1.4 billion achieved in the corresponding period in 2017.

The Firm saw an 8% increase in its revenue due to a higher volume of white products and lubricants sold within the 9-months period. However, on a quarterly basis, a closer review reveals that within Q3’ 18 to Q3’ 17, the firm’s revenue dipped by 16% due to lower sales during this period. The company’s turnover rose from N70.2 billion in 2017, to N75.8 billion this year, while its profit before tax rose from N2.02 billion in 2017 to N2.27 billion in 2018.

Gross profit declined as the cost of sales grew by 9.5%, higher than the growth recorded in revenue. This weighed on the Gross profit which declined marginally.

Operating profit also fell due to the rise in distribution expenses as the firm spent more on marketing and incurred more freight costs compared to the previous period. Despite this, the firms were able to post a better performance with profit before tax (PBT) surging as finance costs lessened due to lesser interest payments on its bank overdraft.

The firm’s liquidity declined marginally as seen in its current ratio and particularly it’s acid test ratio which shows that the firm’s ability to meet its obligations is declining. The firms ROA showing its effectiveness in utilizing its assets in earning income declined. However, the returns on the equity funds raised spiked. The firm’s EPS of 229 Kobo, rose by 16.84% from the 196 Kobo in Q3’17 was approved for H1’18 financial
year.