Conoil reports 73% decline in profit, declares 100k dividend

…NSE sanctions N1.8m

Conoil plc reports full-year 2014 results on the Nigerian Stock Exchange (NSE), with 73 per cent decline in profit after tax.

The consolidated audited financial statements for year ended December 31, 2014, shows Conoil reporting profit after tax decline to N834 million against N3.07 billion recorded in 2013.

The full-year 2014 results show the petroleum and petroleum products distributors company in oil and gas reports a profit before tax (PBT) declined to N1.5 billion from N4.6 billion recorded in the prior year.

Despite the decline in profitability, the management of the company declared a dividend of N1.00 per share expected to be approved by shareholders at the 45^th Annual General Meeting (AGM) in Uyo.

Major drivers in profits are weak revenue and hike in finance charges. The company’s revenue was down by nearly 20 per cent from N159.3 billion in 2013 to N128.35 billion in 2014.

Finance charges also increased by nearly three per cent from N2.25 billion to N2.31 billion following the Central Bank of Nigeria (CBN) devaluation of Naira in the year under review.

With decline in profits, basis earnings per share dipped by 73 per cent to 120 kobo from 442 kobo in 2013.

Total assets thus remained stronger with a gain of 5.1 per cent from N82.37 billion in 2013 to N86.59 billion in 2014 while total equity decline by 11 per cent from N18 billion to N16.1 billion in 2014.

Conoil over the years has failed to oblige with the NSE rules of filing its financial statement and was sanctioned N1.8 million for submitting December 2014 late.

During the last two years, NSE has granted all listed companies a month’s grace after their respective regulatory filing dates noting the regulatory challenges of adopting the International Financial Reporting Standards by the listed companies and socio-political uncertainties that prevailed in the country in recent times.

The Exchange believes that the extended filing period was therefore adequate and Issuers should have no reason for failing to file their audited financials as at when due.

Head of Legal and Regulation Division of The NSE, Tinuade Awe, had stated in a statement that “late filing has the potential to adversely affect the market and their shareholders. It creates grounds for avoidable doubts regarding companies’ performances.

“The Exchange is monitoring the compliance status of these companies very closely and is engaging the affected companies accordingly.

“We encourage investors to always check the X-Compliance Report and Released Financials on our website for full details of the compliance status of listed companies before making investment decisions,” she said.

The share price of Conoil was among the top losers last week, dropping by 9.71 per cent or N3.23 from N33.28 to N30.05.