DESPITE the tough operating environment, Conoil Plc, one of the nation’s major oil marketing companies, has declared a pre-tax profit of N1.8 billion, just as its assets soared to N96 billion during the third quarter of the year.
This is contained in its nine-month results, for the financial period which ended on September 31, submitted to the Nigerian Stock Exchange (NSE) on Monday.
The report showed that the company’s assets increased from N86 billion during the same period in 2014 to N96 billion in 2015. It recorded profit after tax of N1.2 billion as against N1.4 billion in 2014.
Recall that players in the oil sector have been confronted with unprecedented challenges arising from unpaid government debts, tight credit conditions and weak Naira among several other issues which have negatively impacted sales.
The company, In a statement, attributed the 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.”
The statement added: “This efficiency translated to high profit margin on product sales.
The profit for the period would have been much better save for the high finance cost, consequent upon the long outstanding large receivable from the Petroleum Support Fund”.
Challenges in the downstream sector have been overwhelming and analysts are of the 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 promised to continuously transform its business and prepare for the increasingly fierce competition.
Source : SunOnline