Conoil records N2.84bn profit for FY 2016

Conoil Plc has recorded  a gross profit of N2.84 billion for the 2016 business year,  up from the N2.31billion it recorded prior year.

The company’s ability to grow it revenues while cutting down on distribution expenses ensured that it was able to close the year on a profitable note, posting basic earnings per share of 406 kobo, up from the 2015 level of 333 kobo, an increase of 22 per cent Cornoil Plc grew revenues by  3.41 percent to N85.02 billion up from N82.9 billion in 2015 but was unable to curtail administrative expenses which ballooned by almost a billion naira.

As at the end of 2016, Conoil’s total assets peaked at N69.833 billion as against N69.387 in 2015.

The Company managed its capital to ensure that it was able to continue as a profitable going concern while maximizing returns to stakeholders through the optimization of the debt and equity balance. With a gearing ratio of 0.49 (down from 1.09), Conoil is firmly in the hands of its equity holders as it draw down on its debts closing the year with N9.245 billion less borrowing.

Quoting from the report which Conoil sent to the Nigerian Stock Exchange, “overall strategy remains unchanged from prior year. The capital structure of the Company consists of debt, which includes the borrowings disclosed in, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings as disclosed in relevant notes in the financial statement.”

Cornoil Plc closed flat on the floor of the Exchange on June 21. The company which has a market capitalisation of N28.05billion has a 9.61X price-earnings ratio, according to data provided by Bloomberg.