Conoil – Price adjustment generates revenue and profit
Unaudited result and financial statements
The oil marketing company has identified itself in three reportable segments which include white goods,
The White Goods segment is involved in the sale of Premium Motor Spirit (PMS), Aviation Turbine Kerosene (ATK), Dual Purpose Kerosene (DPK), Low-pour Fuel Oil (LPFO) and Automotive Gasoline/grease oil (AGO).
The Lubricants segment products are transport lubricants, industrial lubricants, greases, process oils and bitumens. The products marketed in the LPG segment are
The Bureau also revealed that the average retail price of automotive diesel paid by consumers increased by 28.97% on an annual basis, from a lower cost of N224.37 per liter recorded in the corresponding month of last year at a higher cost. of 289.37 N per liter in
White goods revenue contributed 92% or N116.97 billion in 2021, compared to 93% or N109.56 billion for white goods the previous year.
Lubricants, out of revenue of N126.7 billion in 2021, contributed 8% or N9.73 billion, while lubricants in 2020 contributed 7% or N7.91 billion in 2020.
Cost of sales (CoS) increased by 7.03% to N115.22 billion in 2021 from N107.65 billion in 2020 to bring
The interaction between revenue and CoS positioned gross profit at N11.48 billion in 2021, an increase of 17% from the N9.82 billion reported in 2020.
Other operating income closed 2021 unaudited at N296.24 million from N151.7 million in 2020, driven by a 494.8% increase in rental income which closed 2021 at N123.6 million. naira from 20.8 million naira in 2020, while service revenue increased from 109.1 million naira in 2020 to 172.64 million naira in 2021.
The company reported a 0.4% decline in total operating expenses to N7.22 billion in 2021 from N7.25 billion in 2020, due to lower administrative expenses.
Finance charges for the period increased by 8% to N760.6 million in 2021 from N704.57 million in 2020.
Interest on bank overdraft closed 2021 at 753.8 million naira in 2021 from 700.5 million naira in 2020, with accretion expenditure dropping from 4.04 million naira in 2020 to 6.8 million naira naira in 2021.
According to the company: “Bank overdrafts are repayable on demand. The average effective interest rate on bank overdrafts is approximately 14% (2020: 15.5%) per annum and is determined on the basis of NIBOR plus the lender’s profit margin.
“The overdraft was necessitated by the delay in payment of pending federal government subsidy applications on the import/purchase of products for resale pursuant to the provisions of the Petroleum Support Fund Act for regulated petroleum products.”
In total, the company recorded a 76.6% increase in pre-tax profit to N3.79 billion in 2021 from N12.14 billion in 2020.
Profit for the period also increased by 111.1% to N3.04 billion in 2021 from N1.44 billion in 2020.
The increase in earnings impacted earnings per share which increased from N4.38 in 2021 to N2.08 per share in 2020.
The company, in its unaudited results, did not declare a dividend payout to shareholders, but it has maintained the payout of dividends to shareholders since 2001.
However, during the 2020 financial year ended
The oil marketing giant had announced a final dividend payment of N2.00 per ordinary share of 50 kobo each for the period ended
Customers and other debtors
Meanwhile, the company’s total assets increased by almost 10% to N53.69 billion in 2021 from N48.86 billion in 2020.
Total non-current assets fell by 22% to 3.85 billion naira in 2021 from 4.94 billion naira in 2020, while total current assets which includes trade and other receivables increased by 13, 5% to reach N49.84 billion in 2021 from N43.93 billion in 2020.
Total equity increased by 10.24% to 21.52 billion naira in 2021 from 19.62 billion naira in 2020, mainly due to retained earnings which appreciated by 13% to 17, 3 billion naira in 2021 compared to 15.35 billion naira in 2020.
Total non-current liabilities increased from N964.79 million in 2020 to N1.01 billion reported in 2021, while total current liabilities increased by around 10% from N28.4 billion. naira in 2020 to 31.16 billion naira declared in 2021.
Maintaining the leadership position
Meanwhile, the management of
The company has assured its shareholders that conscious efforts will be directed towards better execution of value-added products and services, particularly in the areas of marketing and customer management.
While noting the challenges ahead given the current state of the national economy, he however expressed optimism that he would strive to maintain profitability.
Spurred by words of encouragement from shareholders after the meeting ratified a total cash dividend payment of 1.04 billion naira, translating to 150 kobo for every 50 kobo share held, the company pledged to explore opportunities in the coming years to deliver strong financial results and increase competitive returns on its shares.
He suggested that with the changing dynamics of the downstream oil industry,
“We plan to build on the progress made in previous years to deliver a strong and sustainable performance that enhances returns for our shareholders,” Adenuga said.
“Our overriding objective is to ensure the continued delivery of excellent service to our customers. The company will increase its profits, improve its profitability and the quality of its assets, and provide competitive returns to our esteemed shareholders,” the Chairman added.
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