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Conoil investors to share N1.7bn from N3.9bn profit

Posted by By Sun News Publishing on 2006/09/20 | Views: 872 |

Conoil investors to share N1.7bn from N3.9bn profit


Shareholders of Conoil Plc will be smiling to the bank soon, as the leading petroleum products marketing company has set aside N1.734,883,000 to be paid as dividend for the year ended December 31, 2005.

Shareholders of Conoil Plc will be smiling to the bank soon, as the leading petroleum products marketing company has set aside N1.734,883,000 to be paid as dividend for the year ended December 31, 2005.

The proposed dividend is however, subject to ratification by the shareholders at their forthcoming annual general meeting, even as the company shows promise of improved balance sheet and a sizeable increase in returns in the current year.

The amount, which translates into N2.50 on every 50 kobo ordinary share, as against N2.00 paid in 2004, has again underscored the company’s reputation of delivering increasing returns on investment. Like in the previous year, Conoil maintained its record of utmost prudence with an impressive dividend cover that ensured payouts were within the level of earnings and not supplemented from the company’s revenue reserve, a statement from the oil firm said.

In its results, made available by the Nigerian Stock Exchange (NSE), the company also posted profitable growth in turnover, which rose from N60,032,150,000 in 2004 to N75, 535,137,000 in 2005. In addition, there was relatively appreciable increase in its profit before tax as well as the profit after tax, from N3,374,423,000 and N2,213,149,000 to N3,860,628,000 and N2,624,270,000 respectively.

Another highpoint of the results is the 95 per cent jump in the company’s net current assets, from N1,808,720,000, in 2004, to N3,532,522,000, in 2005. Based on this performance, stock watchers have rated Conoil as the leading player in the industry in terms of liquidity, considering that all others, except one, recorded negative current assets in the year under review.

Commenting on the audited accounts, stock analysts spoke glowingly of Conoil’s dividend policy, which, according to them, demonstrates optimum efficiency and prudence in resource management.
“Considering the dividend payout to the level of earnings and with a dividend cover of 1.51, Conoil is the most prudent. This is commendable, especially against the background that some others paid more dividends than their current earnings, which means that they drew from their revenue reserve to supplement the payouts,” a stock broker explained.

Speaking in Lagos, at the weekend, on the company’s forthcoming 36th annual general meeting (AGM), the managing director, Sina Tychus, said Conoil had made strategic investments that would ensure consistent profitable growth and increasing stakeholder value.

Noting that the company was taking full advantage of opportunities in the sector to boost its market share in the core businesses, Tychus attributed Conoil’s achievements over the years to sound management and sustained investment in machinery and manpower.

“We are re-establishing commanding presence in retail business, lubricants, aviation, liquefied petroleum gas, specialised products and non-fuel retail services. The ultimate goal is to offer our customers excellent service and the shareholders maximum value,” he said.

As part of the strategic drive to expand its horizon and open new income streams, Conoil is set to launch its brand of cooking gas under the name ‘CONGAS’. Its gas plant in Lagos has since been completed and is ready for commissioning. The management has promised to introduce pioneering initiatives that will guarantee safety and value for money and help the company to deliver profitable growth that will restore it to the front burner in the nation’s gas sector.

Conoil’s projections for the current year give strong indications that the shareholders will smile home again this year with bountiful harvest. The company is reputed to have consistently demonstrated strong commitment to a dividend policy that ensures increasing returns to investors. It declared N69 million dividend in 2000, N171.5 million in 2001, N686 million in 2002 and N1.3 billion in 2004.



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Fay(Katy, Texas, US)says...

Actually translates to bravehearted.