With a turnover of N60 billion and a ratio of gross profit to turnover of 16.96 per cent, the highest in the petroleum marketing sub-sector last year, Conoil Plc had emerged the most profitable company among its peers in the sector.
Gross profit to turnover measures efficient management and utilisation of resources.
A stockbroker, Mr. Charles Odafe said: \"Since the petroleum marketing sector is a quasi regulated market with little or no differential in pricing, the result proved the efficiency and prudence of the company in the effective utilisation of available resources.
Also in the review period, the company recorded a dividend cover of 1.59 and it was paid from profit made in the 2004 financial year.
A breakdown of the company\'s performance in 2004 showed a 74 per cent increase in turnover from N34.5 billion, in 2003 to N60 billion last year, culminating in an after tax profit which grew by 9.06 per cent from N2.02 billion in 2003 to N2.21 billion in 2004.
Earnings per share also grew from 292 kobo to 319 kobo.
Industry sources said that the company is strategically positioning itself to become the leader in the downstream petroleum sector with the merger structure it is building across the country and the state-of-the-art liquefied natural gas plants which will soon be committed in some parts of Nigeria.
A competent source in the company said the future is brighter for shareholders with the ongoing massive expansion drive in the various segments of its business.
Specifically, the source said large investments has been made in modern infrastructure aimed at adequately exploring the opportunities of emerging markets, setting new standards in service delivery and enhancing the bottomline for improved shareholders value.