Despite tough operating environment and global economic crisis, Conoil Plc, an indigenous petroleum products marketing company, has announced increase in its first quarter unaudited results ended March 31, 2010.
The company in a statement made available to THISDAY, said that the result, which further confirmed that the it is on the right path to realising its financial projections for the year, showed improvement on all performance indicators.Conoil said it recorded an increase of 250 per cent in its post tax profit over the previous year; moving from N41.4 million in 2009 to N145.68 million during the period under review.
The company added that its turnover also increased to N21.07 billion from N19.25 billion, while pre-tax profit leaped by 251 per cent to N214.25 million from N60.92 million posted in the same period last year.Earnings per share also rose by 250 per cent, from N6.00 to N21.00.On the reasons behind the performance, the company said: "The impressive result posted is the outcome of prudent management of resources coupled with returns on strategic investments made by the company in core segments of its business including retail, aviation and lubricant.”
Also reacting to the performance, a broker, Mr. Peter Aletor, said Conoil, has continued to post impressive performance on the floor of the Nigerian Stock Exchange (NSE) because of its carefully planed business model.Investors, he added, have continued to cash in on the expected favourable returns from the company's investment foray into the lucrative West African oil marketing industry.
He said: “Investors are still trying to digest the package and I can assure you, by time the full import of the offshore investment drive dawns, more investors will strive to take a position. Investors' renewed confidence in the equity is only natural considering the company's pedigree as an organisation with a consistent dividend policy,” he said.
The company, among other major capital investment, recently procured hi-tech lubricant blending plants and allied facilities to supplement its plant in Apapa. It also secured contracts to supply aviation fuel to scores of airlines including members of the Arab Air Carriers Organization (AACO), the umbrella body of 57 airlines from the Middle East and the Arab nations.