Conoil Plc recorded a significant decline in profitability for the financial year ended 31 December 2025.
According to the company’s audited financial statements released today, profit after tax dropped 75.2 percent to N2.18 billion from N8.77 billion in the previous year, as rising finance costs reduced margins despite the company maintaining positive operations.
The downstream oil marketer posted revenue of N301.72 billion for the period, a 6.6 percent decrease from N323.13 billion in 2024, reflecting a contraction in white products sales, which account for 97 percent of turnover.
Profit before tax plummeted by 75.7 percent to N2.68 billion from N11 billion, with the company’s finance costs — primarily interest on bank overdrafts — more than doubling to N10.78 billion from N3.95 billion in the same period last year.
The effective interest rate on overdrafts remained at 32 percent per annum, but the overdraft balance expanded to N54.9 billion from N28.68 billion, indicating a greater reliance on short-term bank funding to finance inventory procurement and credit sales.
Gross profit decreased to N22.68 billion from N26.35 billion, while the gross margin remained relatively stable at 7.5 percent.
Earnings per share declined to 314 kobo from 1,264 kobo, and the board also proposed a dividend of 200 kobo per share, down from 350 kobo paid for 2024.
The company’s balance sheet saw substantial expansion, with total assets rising to N139.37 billion from N114.95 billion, mainly driven by a near doubling of property, plant and equipment to N10.81 billion following N7.65 billion in capital expenditure, much of which was concentrated in work-in-progress on depot distribution facilities.
Trade receivables also increased to N90.59 billion from N71.9 billion.
The gearing ratio worsened to 1.40 from 0.73, indicating increasing leverage pressure, which management admitted was driven by the need to stock inventory and grow sales on credit terms.
Despite the decline in earnings, shareholders’ funds remained broadly steady at N39.24 billion compared to N39.49 billion in 2024, with retained earnings slightly lower at N35.07 billion.
Conpetro Limited, the vehicle through which Chairman Dr. Mike Adenuga controls the company, maintained its 74.4 percent shareholding, unchanged from the previous year.
One director, Engr. Babatunde Okuyemi, resigned from the board on 16 June 2025.
Three directors — Dr. Mike Adenuga Jr., Mr. Ademola Idowu, and Mr. Mike Jituboh — are due to retire by rotation and have offered themselves for re-election.
Conoil’s primary petroleum product suppliers during the year included Dangote Refinery and NIPCO, and the company distributes through a network of over 300 dealers nationwide
Administrator and Writer
