Stories by Amaka Ifeakandu Lagos
Conoil Plc, Petroleum products marketing giant released half-year result for the period ended June 30, 2017, showing that revenue grew by 13.7 per cent. Th e result also showed that net profi t dropped by 59 per cent, despite the 61.8 per cent reduction in tax expenses for the period. Specifi cally, the result showed that revenue rose to N44.925 billion , all of which was generated within Nigeria, from N39.514 billion recorded the same period of last year. Th e cost of sales rose to N38.933 billion from N39.514 billion, leaving gross profi t at N5.991 billion from N5.243 billion in the fi rst half of 2016.
A further breakdown of the fi gures indicated that revenue, cost of sale and gross profi t from white products stood at N42.346 billion, N37.07billion and N5.275 billion respectively, with the remaining coming from sale of lubricants, while the LPG business was almost non-existent during the period. Other operating income dropped to a mere N96.564 million from N1.966 billion; distribution expenses fell from N1.085 billion to N858.456 million, with freight costs amounting to N813.24 million, down from N1.017 billion.
Administrative expenses dropped to N3.52 billion from N3.53 billion, the bulk of which was provision for litigation claims, which jumped 100 per cent from N450 million in the 2016 half-year to N900 million. Finance cost was also curtailed to N627.909 million down by 59.9 per cent from N1.566 billion in the fi rst half of 2016; while tax expenses dropped by 61.8 per cent from N524.8 million to N200.619 million. Profi t for the period stood at N427.29 million, as against the previous N1.042 billion, representing earnings per share of 62 kobo, down from prior half-year’s 150 kobo.