Conoil Plc joined the list of other oil and gas firms, listed on the Nigerian stock Exchange to suffer decline in both revenue and profit, for the period ended 30 June 2020. According the financial statements filed with Exchange on Thursday, Conoil revenue declined by 20% in the first half of the year while profit for the period slumped by 67%.
In H1 2020, Conoil recorded a revenue of N57.456 billion down from N72.219 billion it reported in the same period in 2019, whereas profit after tax dropped to N338.697 million from N1.033 billion. This shows the net profit margin of 0.6%, down from 1.43% recorded in H1 2019.
The company EPS decreased to N0.49 from N1.49 in H1 2019..
A review of the company’s statement of profit or loss, showed that the cost of sales gulped 91.69% of the revenue (N52.679 billion) with gross profit settling at N4.777 billion (gross profit margin of 8.31%) in H1 2020.
From the expense column, it was observed that the company reduced its major expense categories, such as;
- Distribution expenses declined to N825.844 million in H1 2020 from N1.028 billion in H1 2019
- Administrative expenses dropped to N22.987 billion from N3.037 billion in H1 2019
- Finance cost decreased to N635.468 million from N1.171 billion from H1 2019.
Conoil made of all its revenue in H1 2020, from the sale of petroleum products within Nigeria according to the company report.
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In the second quarter of 2020 (April to June), the company revenue dropped by 47.21% to N19.311 billion from N36.582 billion in H1 2019, while the profit dipped by 88.93% to N78.316 billion from N707.518 billion in H1 2019.
Conoil balance sheet showed that the total assets declined by nearly N10 billion to N53.631 billion as at 30 June 2020 from N63.585 billion as at 31 December 2019. This is mainly due to drop in;
- Inventories dropped to N7.131 billion from N9.823 billion
- Trade and other receivables declined to N38.797 billion from N40.441 billion
- Cash and cash balances slumped to N1.967 billion from N7.080 billion
The company’s total liability also declined in line with the total assets. The total liability dropped to N33.825 billion in H1 2020 from N44.117 billion at 31 December 2019, mainly due to drop in borrowings to N3.169 billion from N9.151 billion.
The total equity remained relatively stable at N19.806 billion. The major component of the company’s equity is the retained earnings which stood at N15.635 billion in H1 2020.
Conoil reported a negative cash and cash equivalents as at 30 January 2020 of N1.201 billion
Conoil was incorporated in 30 June 1970. It is into the business of Marketing of Refined Petroleum Products. Manufacturing and Marketing of Lubricants. It is listed on the main board of the Nigerian stock Exchange under the Oil & Gas sector.
The share price of Conoil has remained unchanged at N16.90 per share, since 14 July 2020. The 52 week high and low values are N21.00 and N13.15 per share respectively. YTD the share price is down by 8.65%, while in two years and five years it has lost 30.45% and 49.22% of its value respectively.
Written by;
Ifunanya Ikueze
