Conoil Plc profit plunges 75 percent to N2.16bn, dividend slashed to 200 Kobo

CONOIL Plc has reported a sharp decline in its financial performance for the year ended December 31, 2025, with profit before tax tumbling by 75.7 percent to N2.68 billion from N11.0 billion in 2024. Profit after tax also fell drastically to N2.16 billion, compared to N8.77 billion in the previous year, according to the company’s audited financial statements. Revenue dropped to N301.7 billion from N323.1 billion, representing a 6.6 percent decline, underscoring the tough operating environment in Nigeria’s downstream petroleum sector. 

The board of directors has recommended a dividend of 200 kobo per share, a significant cut from the 350 kobo declared in 2024. This translates to a proposed payout of N1.39 billion, down 42.9 percent from the previous year. Retained earnings closed at N35.07 billion, slightly lower than the N35.32 billion recorded in 2024, while shareholders’ funds dipped marginally to N39.22 billion from N39.49 billion. 

The company’s ownership structure remained unchanged, with Conpetro Limited maintaining its dominant 74.4 percent stake, while other shareholders accounted for 25.6 percent. The total issued share capital stood at 693.95 million ordinary shares of 50 kobo each. No other shareholder held more than 5 percent of the company’s equity. 

Conoil highlighted its extensive distribution network, which includes over 300 dealers and distributors nationwide. Major suppliers of petroleum products to the company are Dangote Refinery and NIPCO, reflecting its reliance on both local and international sources. The company’s retail presence spans strategic locations across Lagos, Ogun, Edo, Delta, Rivers, Enugu, and the Federal Capital Territory, with mega stations and service outlets operated by independent dealers. 

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On the human capital front, Conoil reported a total of 140 permanent staff, with a gender ratio of 10:1 in favour of men. The company also employed 12 expatriates and 334 other staff, highlighting its workforce diversity. The directors noted plans to improve female representation at board and top management levels in the coming years. 

The company’s dividend history reflects its long-standing commitment to shareholder returns, with payouts stretching back to 2001. However, the latest cut in dividend underscores the financial strain experienced in 2025. Despite the downturn, the directors expressed confidence in the resilience of the company’s operations, citing its strong asset base and wide distribution network. They assured shareholders that Conoil remains committed to sustaining profitability and delivering value in the long term.

The report concluded that there were no post-balance sheet events that could materially affect the company’s financial position as of December 31, 2025. 

Conoil Plc, incorporated in 1960 and formerly known as National Oil and Chemical Marketing Plc, has evolved into one of Nigeria’s foremost petroleum marketing companies. With Conpetro Limited holding majority control and Dr. Mike Adenuga Jr. as chairman, the company continues to play a pivotal role in Nigeria’s downstream oil sector. Yet, the 2025 financial results highlight the challenges of operating in a volatile market, where rising costs and competitive pressures have eroded profitability. 

For shareholders, the reduced dividend payout is a sobering reminder of the sector’s uncertainties, even as Conoil’s management pledges to navigate the headwinds and restore stronger earnings in the years ahead.