For the year ending December 31, 2024, Conoil Plc recorded a profit before tax of N13.806 billion, which is a 12.45% year-over-year (YoY) increase over the prior year.
According to TNCs’ assessment of the unaudited Group financial accounts, the company’s revenue increased from N201.387 billion in 2023 to N323.123 billion, a 60.45% increase.
Income from its white products, which made up 96% of total income and increased by 62.42% year over year, was the main driver of the notable revenue gain.
Key Highlights (FY 2024 vs FY 2023)
- Revenue:13 billion (+60.45% YoY)
- Cost of Sales:72 billion (+62.33% YoY)
- Gross Profit:41 billion (+43.25% YoY)
- Sales & Distribution Expenses:99 billion (+80.63% YoY)
- Gen & Admin Expenses:73 billion (+27.54% YoY)
- Finance Cost:88 billion (+98.58% YoY)
- Profit After Tax:39 billion (+15.42% YoY)
- Earnings Per Share:41 (+15.40% YoY)
- Cash & Cash Equivalents:96 billion (-38.51% YoY)
- Total Assets:57 billion (+16.51% YoY)
- Retained Earnings:94 billion (+30.93% YoY)
- Total Equity:11 billion (+27.04% YoY)
Takeaways And Insights From Investors
Growth in revenue is robust. However, Conoil can be susceptible to changes in the price of oil because white products account for 98% of its revenue.
Long-term stability may be enhanced by diversifying into the lubricant or non-fuel markets. Lubricant sales make up a pitiful 2% of overall revenue.
Pressures On The Margins
Conoil saw its profit margins decline in spite of an increase in revenue. Gross as a measure of growing expenses:
- The cost of sales increased by 62.33%, surpassing the growth in revenue, causing the gross profit margin to drop by 10.72% to 8.79%.
- Higher operations and financing expenses slowed earnings growth, as evidenced by the 30% decline in the pre-tax profit margin to 4.27%.
- Even though profit after taxes increased by 15.42%, the net profit margin also decreased by 28% to 3.52%.
This implies that the company’s expenses, particularly its financing costs, operating expenses, and cost of sales, increased more quickly than its income, putting pressure on profitability.
Strength Of The Balance Sheet:
With more equity, better short-term financial stability, and stronger assets, Conoil Plc’s balance sheet exhibits resilience.
- While equity increased 27.04%, total assets increased 16.51% YoY to N113.57 billion, suggesting corporate expansion.
- Retained earnings also increased by 30.93%, indicating that the business is reinvesting gains rather than largely depending on outside funding.
- It is concerning that cash and cash equivalents have decreased 38.51% year over year, even if its current ratio has somewhat improved to 1.54.
Performance Of The Market
Building on an already remarkable 217% year-to-date (YtD) return in 2023, Conoil’s share price produced an exceptional 361% YtD return in 2024.
This Demonstrates High Investor Confidence
But as of January 2025, the share price has not changed, indicating that investors are holding off on taking any further action until they get fresh stimuli like dividend declarations or earnings reports.
The company offers a trailing dividend yield of 0.90% with an annual payout of N3.50.
Conoil is anticipated to pay a dividend for the 2024 fiscal year due to its excellent retained earnings and rise in profitability.
