SHAREHOLDERS have continued to condemn Conoil Plc for posting 72.8 percent profit fall in 2014. In spite of a 15.8 percent reduction in administrative and distribution expenses during the financial year ending December 31, 2014, the fortune of Conoil Plc, an indigenous major oil marketer, continued to fall due to several factors, according to the analysis of its result released over the weekend via the Nigerian Stock Exchange, NSE.
The company’s revenue fell 19.5 percent to N128.4 billion from N159.5 billion posted in 2013m while profit after tax plunged 72.8 percent to N834 million in 2014 from N3.1 billion achieved in 2013.
There was a 15.8 percent reduction in administrative and distribution expenses to N10.9 billion from N12.9 billion in 2013, but the company’s profit before tax fell 66.5 percent to N1.5 billion from N4.6 billion recorded in 2013.
Consequently, Basic Earnings Per share dropped 72.8 percent to 1.20 from N4.42.
Conoil’s total assets increased by 5.1 percent to N86.6 billion as against N82.4 billion recorded in 2013, while total liabilities shot up 9.6 percent to N70.5 billion from N64.3 billion in the period under review.
With return on assets dropping from 1.9 percent in 2013 to 0.7 percent in 2014, it depicted a reduction in the business’s ability to utilise assets for the generation of sufficient sales to induce higher profit margins.
Total equity that dipped 10.8 percent to N16.1 billion compared with N18.04 billion was triggered by a 14 percent decline in retained earnings to N11.9 billion as against N13.9 billion recorded in the same period of 2013. Return on equity hence fell from 17.0 per cent in 2013 to 5.2 in 2014 prompted by profit decline.
Debts to asset ratio increased to 81.41 percent in 2014 from 78.1 in 2013, indicating a low degree of the business’s financial flexibility and a growing portion of the company’s asset being financed by debt.
Current ratio, a measure of the company’s ability to meet its short term obligations as at when due, reduced to 1.16 in 2014 from 1.21 in the preceding year, which is significantly lower than the industry average of 2.1.
The company which started the month of September with a 9.7 percent or N3.23 depreciation in its share price to close at N30.05 from N33.28 recorded on August 1, has since remained flat at N30.05 till date.
The company has 693.95 million shares outstanding and market capitalisation of N20.9 billion as at September 7.
Conoil is engaged in the marketing of refined petroleum products and also in the manufacturing and marketing of high-quality lubricants and chemicals for domestic and industrial use.

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