Aggressive cost cutting pushes Capital Oil’s profit by 450% in 2016

Union Diagnostics

Capital oil plc ended the financial year 2016 with NGN840.million revenue compared to NGN1.1 billion recorded in the financial year 2015.

On a year on year basis, its revenue fell by 36%, a visible sign that its revenue was impacted by the current economic recession.

The company’s cost of sales for the year fell to NGN731.7 billion in contrast to NGN967.7 million recorded in the year 2015.

The company recorded NGN108.6 million gross profit compared NGN164.0 billion recorded in the year 2015. Its operating expenses NGN317.6 billion in contrast NGN42.5 billion recorded in the previous year.

Capital oil recorded NGN336.9 million profit before taxation in contrast to NGN56.1 million in the previous year. After settling its tax for the year, its profit for the year increased by 450% to NGN340.2 million against NGN61.8 million in the year before.

The result reveals an Capital Oil carried out aggressive cost cutting measure that aims for profit rather than expanding the company’s revenue base.

Total asset for the period was NGN1.3 billion compared to NGN1.6 billion  recorded in the year before. Its total liabilities for the year NGN886 million compared to NGN885 million recorded in the year 2015.

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