Unaudited result and accounts of Conoil Plc for period ended December 31, 2021 showed a modest growth in revenue, impacted by price adjustment in white products.

The petroleum marketing company has identified itself in three reportable segments that include white products, Lubricants and Liquefied Petroleum Gas (LPG).

The white products segment is involved in the sale of Premium Motor Spirit (PMS), Aviation Turbine Kerosene (ATK), Dual Purpose Kerosene (DPK), Low-pour Fuel Oil (LPFO) and Automotive Gasoline/grease Oil (AGO).

The products under the lubricants segment are Lubricants transport, Lubricants industrial, Greases, Process Oil and Bitumen. Products traded under LPG segment are Liquefied Petroleum Gas - Bulk, Liquefied Petroleum Gas - Packed, cylinders and valves.

According to National Bureau of Statistic (NBS) the average price paid by consumers for PMS increased by 0.04per cent on year-on[1]year basis to N165.77 in December 2021 when compared to N165.70 in December 2020.

The Bureau also disclosed that the average retail price of Automotive Gasoil paid by consumers increased by 28.97 per cent on a year-on-year basis from a lower cost of N224.37 per litre recorded in the corresponding month of last year to a higher cost of N289.37 per litre in December 2021.

Conoil's revenue from sale of petroleum products in 2021 unaudited results grew by nearly eight per cent to N126.7billion from N117.47billion reported in 2020.

Revenue from White products contributed 92 per cent or N116.97billion in 2021 as against 93 per cent or N109.56billion White products contributed in prior year.

Lubricant, out of the N126.7billion revenue in 2021 contributed eight per cent or N9.73billion, while Lubricants in 2020 contributed seven per cent or N7.91billion in 2020.

The Cost of sales (CoS) rose by 7.03 per cent to N115.22billion in 2021 from N107.65billion reported in 2020 to bring Conoil's CoS/Revenue to 90.9 per cent in 2021 from 91.6 per cent in 2020.

interplay between revenue

The interplay between revenue and CoS positioned gross profit to N11.48billion in 2021, 17 per cent increase from N9.82billion reported in 2020.

Other operating income closed 2021 unaudited at N296.24million from N151.7million in 2020, driven by 494.8 per cent increase in rental income that closed 2021 at N123.6million from N20.8million in 2020, while service income moved from N109.1million in 2020 to N172.64million in 2021.

The company reported 0.4 per cent decline in total operating expenses to N7.22billion in 2021 from N7.25billion in 2020, driven by decline in administrative expenses.

Conoil reported 0.72 per cent decline in administration expenses to N5.15billion in 2021 from N5.18billion in 2020, while Distribution expenses that comprises of Freight costs and marketing expenses up by 0.3 per cent to N2.08billlion in 2021 from N2.07billion in 2020.

Finance costs for the period grew by eight per cent to N760.6million in 2021 from N704.57million in 2020.

Interest on bank overdraft closed 2021 at N753.8million in 2021 from N700.5million in 2020, as accretion expenses moved from N4.04million in 2020 to N6.8million in 2021.

According to the company: "Bank overdrafts are repayable on demand. The average effective interest rate on bank overdrafts approximates 14per cent (2020: 15.5per cent) per annum and are determined based on NIBOR plus lender's markup.

"The overdraft was necessitated by delay in payment of outstanding subsidy claims from the Federal Government on importation/purchase of products for resale in line with the provision of Petroleum Support Fund Act for regulated petroleum products."

In all, the company reported 76.6 per cent increase in profit before tax to N3.79billion in 2021 from N12.14billion reported in 2020.

Profit for the period also grew by 111.1 per cent to N3.04billion in 2021 from N1.44billion reported in 2020.

The increase in profit impacted on the Earnings Per Share that moved from N4.38 in 2021 to N2.08 per share in 2020.

The company in its unaudited results has not declared dividend payout to shareholders but it has maintained dividend payout to shareholders since 2001.

However, in 2020 financial year ended December 31, 2021, shareholders of Conoil received a dividend of N1.04 billion. The dividend, which translates to N1.50 kobo per share was recommended following the release of the audited results of the petroleum products marketing firm.

Oil marketing giant had announced a final dividend payment of N2.00 per ordinary share of 50 kobo each for the period ended December 31, 2019.

Trade and other receivables

Conoil in its unaudited result and accounts crossed N50billion in total assets, driven by 12.2 per cent increase in trade and other receivables to N34.29billion in 2021 from N30.57billion reported in 2020.

Meanwhile, the company's total assets rose by nearly 10 per cent to N53.69billion in 2021 from N48.86billion in 2020.

Total non-current assets dropped by 22 per cent to N3.85billion in 2021 from N4.94billion in 2020, while Total current assets that comprises of Trade and other receivables rose by 13.5 per cent to N49.84billion in 2021 from N43.93billion in 2020.

Total equity gained 10.24 per cent to N21.52billion in 2021 from N19.62billion in 2020, driven primarily by Retained earnings that appreciated by 13 per cent to N17.3billion in 2021 from N15.35billion in 2020.

Total non-current liabilities moved from N964.79million in 2020 to N1.01 billion reported in 2021, while Total current liabilities about 10 per cent increase from N28.4billion in 2020 to N31.16billion reported in 2021.

Maintaining Leadership Position

Meanwhile, the management of Conoil has reiterated its resolve to maintain its leadership position in the downstream petroleum sector by building a stronger financial position and creating higher values for its shareholders.

The company assured its shareholders that conscious efforts will be directed at achieving better execution of value-added products and services especially in the areas of marketing and customer management.

While noting that the challenges ahead given the current state of the nation's economy, it however, expressed optimism that it would strive hard to maintain profitability.

Spurred by shareholders' words of encouragement after the meeting had ratified a total dividend cash payment of N1.04 billion, which translates to 150kobo for every 50kobo share held, the company promised to explore opportunities in the coming years to deliver solid financial results and increase competitive returns on its shares.

The Chairman, Conoil Plc, Dr. Mike Adenuga (jnr), had while speaking at the company's Annual General Meeting (AGM) said the company was fully charged to consolidate its competitiveness in the different segments of its business by exploring and developing emerging markets while holding its grounds in areas where it has competitive advantage.

He hinted that with the changing dynamics in the downstream petroleum industry, Conoil was poised to ensure improvement in its overall performance that would translate to meeting the expectations of all its stakeholders.

"We plan to consolidate on the progress made in the previous years to deliver a strong and sustainable performance that enhances returns to our shareholders," Adenuga said.

"Our overriding goal is to ensure the continued delivery of excellent services to our customers. The company will grow its earnings, improve profitability and asset quality and deliver competitive returns to our esteemed shareholders," the Chairman added.

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