Conoil declares N2.1b dividend

Downstream oil major, Conoil Plc, on Thursday announced that it would be distributing N2.08 billion as cash dividends to shareholders for the 2015 business year, sending investors scrambling for the shares of the petroleum-marketing company.A breakdown of the dividend recommendation indicates that shareholders will receive a dividend per share of N3, 200 per cent above N1 paid for the 2014 business year.

The dividend recommendation highlighted significant improvements in the performance of the oil company. The audited report and accounts for the year ended December 31, 2015 showed that profit after tax rose by 176.5 per cent from N834 million in 2014 to N2.3 billion in 2015. Profit before tax jumped by 125.1 per cent from N1.5 billion in 2014 to N3.4 billion in 2015.

Earnings per share also rose sharply by 177 per cent to N3.33 in 2015 as against N1.20 in 2014. Shareholders’ funds increased from N16.1 billion in 2014 to N17.71 billion in 2015. Net assets per share closed 2015 at N25.52 compared with N23.19 in 2014. However, turnover dropped by 35 per cent from N128.35 billion to N82.92 billion.

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The management of Conoil attributed the strong performance to efficient management of resources, effective cost control policy as well as reaping from its huge investment in the expansion and upgrade of its facilities. The company stated that the downstream sector remains fundamentally attractive and viable today and the future adding that with clarity of direction and focus, the company’s long-term success is assured.“We will sustain this improved performance and vigorously pursue our aspiration to remain the nation’s leading petroleum products marketer and one of the most profitable quoted companies,” the company stated.

It should be recalled that at the company’s general meeting last year, Dr. Mike Adenuga Jr., the Chairman of Conoil had promised shareholders that notwithstanding the tough challenges in the country, and indeed in the downstream petroleum sector, the company would explore to the fullest, new opportunities that abound in the industry to its advantage.

Adenuga also assured investors of the company’s commitment to cost cutting measures in its operations, vast improvement in the quality of its products and services with a strong bottom-line as its focus.