Conoil Plc recorded a decline in its financial performance in Q3 2020 as the impact of a liquidity squeeze, economic contraction, the rising cost of funds and scarcity of foreign exchange weighed in on its profitability. Conoil Plc recorded a dip in its PBT by -33.47%, declining from N2.45bn in Q3 2019 to N1.63bn in Q3 2020. While its revenue dipped by -21.84%, declining from N112.72bn in Q3 2019 to N88.10bn in Q3 2020. Proshare Nigeria Pvt. Ltd. Highlights Revenue declined by -21.84% to N88.10bn in Q3 2020.
PBT declined by -33.47%to N1.63bn in Q3 2020.
Administrative and distribution expenses declined by -15.55% and -21.20% in Q3 2020, respectively.
Equity rose by +10.56% to N20.58bn in Q3 2020.
A Squeeze on Profits
Profit
Conoil Plc recorded a decline in its profit before tax by -33.47% in Q3 2020. Its profit before tax declined from N2.45bn in Q3 2019 to N1.63bn in Q3 2020 ( see Chart 1 ).
Chart 1 : Conoil Plc PBT (N’bn) Source: Conoil Plc, Proshare Research Revenue
The downstream retailer recorded a decline in its revenue by -21.84% in Q3 2020. Its revenue dipped from N112.72bn in Q3 2019 to N88.10bn in Q3 2020 ( see Chart 2 ).
Chart 2 : Conoil Plc Revenue (N’m) Source: Conoil Plc, Proshare Research Trimming Expense Cost
Administrative Expenses and Distribution Expenses The company saw a slide in both its administrative and distribution expenses in the third quarter of 2020. Its administrative and distribution expenses slumped by -15.55% and -21.20% respectively. The company’s administrative expenses dropped from N5.1bn in Q3 2019 to N4.30bn in Q3 2020, some of the reasons for the reduction in administrative expense were the reduction in litigation claims, depreciation of property, plant & equipment, employer’s contribution, legal & professional charges, etc. While its distribution expenses tumbled from N1.77bn in Q3 2019 to N1.39bn in Q2 2020 ( see Chart 3 ). Chart 3 : Conoil Administrative Expenses and Distribution Expenses (N’bn) Source: Conoil Plc, Proshare Research Proshare Nigeria Pvt. Ltd. Keeping the Equity Chest Filled Equity Despite the decline recorded in PBT and revenue, Conoil Plc recorded an improvement in its equity in Q3 2020, as its equity increased by +10.56%. Its equity rose from N18.61bn in Q3 2019 to N20.58bn in Q3 2020 ( see Chart 4 ). Chart 4 : Conoil Plc Shareholders Fund (N’m) Source: Conoil […]
