Conoil assures shareholders of improved returns, as profit rises by 13.8%

Shareholders of Conoil Plc have been assured of juicy returns on their investment in line with its tradition of delivering increasing dividend.

The chairman of the major oil company, Dr Mike Adenuga, in his address to the shareholders at the 49th Annual General Meeting of the company at the weekend in Uyo, Akwa Ibom State, gave the assurance, while stating that despite the challenges of a tough operating environment in the downstream petroleum sector, Conoil continued to record progress towards delivering superior shareholder value.

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“Every segment of our business will continue to receive the desired attention with a view to maintaining world class levels of operating and capital discipline. We believe that the future holds a lot of promise for our shareholders, the company will surely reward them for their steadfastness and unwavering faith in its prospects,” Adenuga said.

Commenting on the company’s performance, the shareholders expressed satisfaction with the overall performance and the growth path which the board and management have charted for sustained profitability. They were pleased that the company sustained its tradition of paying dividends even in the face of daunting industry challenges

“I must commend the board and management of Conoil for sustaining profitability and also paying dividend to its shareholders notwithstanding the very tough operating environment during the financial year in review. I know of some companies in the downstream oil sector that could not pay dividend to shareholders,” Sir Sunny Nwosu, National Coordinator, Independent Shareholders Association, said.

Also speaking at the meeting, Barrister Ganiat Shiyanbola, commended the board and management of Conoil for its hard work which paid off with the impressive performance and consequent reward for its shareholders.

For the financial period ended December 31, 2018, Conoil’s profit before tax rose by 11.4 per cent to N2,566,765 from N2,304,627 posted in 2017, while profit after tax soared to N1,796,042 from N1,578,507 or 13.8 per cent increase.  Turnover rose by 5.8 per cent to N122,213,014 from N115,513,246.

At the meeting, shareholders approved a total dividend cash payment of N1.4 billion, which translates to 200 kobo for every 50 kobo share held.

The chairman of the company, attributed Conoil’s achievement in the financial year under review to the commitment of the board and management of the company to deliver solid financial results, in spite of the enormous challenges that confronted operators in the downstream oil sector, including the prohibitive cost of procuring petroleum products.

“We managed the challenges properly and ended the year creditably. We embarked on strategic cost reduction, while ensuring that the future growth potential of our business was not sacrificed.”

He assured that the company would not relent in its efforts to maintain its leading position in the downstream petroleum sector.

“through new initiatives in product development, service delivery and best practices, while delivering value to all our stakeholders.”