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Shareholders of Conoil Plc have cause to cheer as the major oil marketing company has expressed optimism about juicy returns on investment, in line with its tradition of delivering increasing dividend.
In his address to the shareholders at the 49th Annual General Meeting of the company at the weekend in Uyo, Akwa Ibom State, the Chairman, Dr. Mike Adenuga, stated that despite the challenges of a tough operating environment in the downstream petroleum sector, Conoil continued to record progress towards delivering superior shareholder value.
“Every segment of our business will continue to receive the desired attention with a view to maintaining world class levels of operating and capital discipline. We believe that the future holds a lot of promise for our shareholders, the company will surely reward them for their steadfastness and unwavering faith in its prospects,” Adenuga said.
For the financial period ended December 31, 2018, Conoil profit before tax rose by 11.4% to N2,566,765 from N2,304,627 posted in 2017, while profit after tax soared to N1,796,042 from N1,578,507 or 13.8% increase. Turnover rose by 5.8% to N122,213,014 from N115,513,246.
At the meeting, shareholders ratified a total dividend cash payment of N1.4 billion, which translates to 200kobo for every 50kobo share held.
Adenuga attributed Conoil’s achievement in the financial year under review to the commitment of the Board and management of the company to deliver solid financial results, in spite of the enormous challenges that confronted operators in the downstream oil sector, including the prohibitive cost of procuring petroleum products.
Said he: “We managed the challenges properly and ended the year creditably. We embarked on strategic cost reduction, while ensuring that the future growth potential of our business was not sacrificed.”
He assured that the company would not relent in its efforts to maintain its leading position in the downstream petroleum sector, “through new initiatives in product development, service delivery and best practices, while delivering value to all our stakeholders.”
Commenting on the company’s performance, the shareholders expressed satisfaction with the overall performance and the growth path which the Board and management have charted for sustained profitability. They were pleased that the company sustained its tradition of paying dividends even in the face of daunting industry challenges
“I must commend the Board and Management of Conoil for sustaining profitability and also able to pay dividend to its shareholders notwithstanding the very tough operating environment during the financial year in review. I know of some companies in the downstream oil sector that could not pay dividend to shareholders,” Sir Sunny Nwosu, National Coordinator, Independent Shareholders; Association, said.
Also speaking at the meeting, Barrister Ganiat Shiyanbola, commended the Board and Management of Conoil, for its hard work, which paid off with the impressive performance and consequently, reward for its shareholders.
