Danger don dey loom for Conoil Plc as dem report say dem profit don drop wey reach 77.1 percent for 2025 fiscal year! E no be small matter, as rising finance wahala and low revenue dey hammer dem earnings, despite say fourth quarter show some shine.
For di period wey end for 31st December 2025, Conoil report say dem profit fall from N8.77 billion for 2024 to just N2.01 billion. Na im make dem income before tax self drop to N2.53 billion, wetin be 77.0 percent reduction from N11 billion wey dem make before. Tax wey dem suppose pay self go down to N518.17 million, down from N2.23 billion.
Revenue no sweet eya for dem as e drop by 6.6 percent to N301.72 billion, na small change from N323.13 billion wey dem get for 2024. Cost of sales self rise 6.1 percent to N278.81 billion, but e be like say na dem high operating and finance expenses dey kill di vibe for di company.
Gross profit later fall sharply by 13.1 percent to N22.91 billion from N26.35 billion. And to crown am all, finance cost shoot up by 162.5 percent due to heavy borrowings – from N3.95 billion wey dem get before to N10.38 billion for 2025. Borrowing self don double, now wey dem reach N54.24 billion.
As for administrative expenses, dem rise by 32.8 percent to N6.11 billion. Distribution expenses, however, reduce sharply to N3.90 billion, down by 43.5 percent from N6.89 billion. Na wetin happen for market now be say Conoil don finally see light at di end of di tunnel for di fourth quarter.
Dem report profit after tax of N544.67 million for di fourth quarter alone, unlike last year wey dem loss N732.88 million. Revenue for di quarter self rise to N97.89 billion from N74 million, showing say sales don improve small. But when you check di earnings per share, e fall wahala like 77.1 percent to 290 kobo, opposed to 1,264 kobo for 2024. Dis year no dividend for shareholders, unlike last year wey dem don drop 350 kobo per share.
For balance sheet, total assets don rise by 21 percent to N139.01 billion, driven by property, plant and equipment wey increase to N9.96 billion, up from N3.97 billion. Trade and other receivables don increase to N91.66 billion, while inventories drop to N21.66 billion. Cash and bank balances improve, but net cash position still dey negative because of overdrafts.
Total liabilities don jump by 32.4 percent to N99.94 billion, showing say pressure don dey mount on di company’s balance sheet. Shareholders’ funds also drop small by 1.1 percent to N39.07 billion, while net assets per share reduce to N5.63 from N5.69 last year.
Do you have a news tip for NNN? Please email us at editor @ nnn.ng
