Conoil posts N1.8 billion PBT
The report also showed that the company’s assets increased from N86 billion for the same period in 2014 to N96billion in 2015.
It recorded profit tax of N1.2 billion against N1.4 billion in 2014.
Players in the oil sector, according to the company have been confronted with unprecedented challenges arising from unpaid government debts, tight credit conditions and weak Naira amongst several other issues which have negatively impacted sales.
The company also attributed its modest performance to its focused strategy and cost control mechanisms.
“We returned a good performance notwithstanding the difficult operating environment due primarily to the efficient product procurement process put in place in the second half of the year.”
“This efficiency translated to high profit margin on product sales.
The company explained further that profit for the period would have been much better but for the high finance cost, consequent upon the long outstanding large receivable from the Petroleum Support Fund”.
“Challenges in the downstream have been overwhelming and analysts are of informed opinion that if the government continues to prolong the payment of long overdue subsidy refunds outstanding to the marketers, their profitability will continue to dwindle and return on investments for shareholders adversely affected.
Notwithstanding the gloomy picture, the company pledged to continuously transform its business and prepare for the increasingly fierce competition.
“We will consistently pursue initiatives that will enable our brands, processes and people drive our corporate vision and ultimately drive value for our shareholders”, it added.