Conoil PLC, one of the largest downstream oil companies said its gross revenue for the third quarter of the year jumped to NGN63 billion.
This is a significant jumping when compared to NGN60 billion declared last year.
The depreciation of the Naira (NGN) weighed heavily on the company. With the rising cost of doing business, Conoil’s its ability to reduce its cost of sales was greatly impaired.
Last quarter, the company’s cost of sales rose to NGN54,3 billion versus NGN51,2 billion expended last year.
Gross profit was slashed down but higher than last year’s figure. Gross profit for the period rose to NGN9,5 billion versus NGN8,9 billion for last year. Conoil PLC is one of the few companies who have not downwardly-tinkered with its head counts. Administrative expenses rose to NGN5,4 billion in the third quarter versus NGN5,0 billion last year.
Net profit for the period rose to NGN1,8 billion compared to last year when it booked a total of NGN1,1 billion.
Conoil PLC disclosed that its net asset has reduced to NGN64 billion from NGN69 billion last year. However, the company has also increased its liabilities to NGN44,6 billion versus NGN51,6 billion last year.
Conoil PLC has less debt in its books but the company has a huge register of debt owed to its trade partners. Trade and other payables have increased to NGN34 billion from NGN28,8 billion last year. Should its creditors pressure its system, it might need to take on more debt to pay partners.
Cnoild said its has three operating and reportable segments: White products, Lubricants and Liquefied Petroleum Gas (LPG). The White products 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 products under the lubricants segment are Lubricants transport, Lubricants industrial, Greases, Process Oil and Bitumen. Products traded under LPG segment are Liquefied Petroleum Gas – Bulk, Liquefied Petroleum Gas – Packed, cylinders and valves.