Conoil Plc’s Profitability Sinks Amidst Rising Challenges
Conoil Plc, a prominent player in Nigeria’s energy sector, is facing significant headwinds in its quest for profitability. The company’s revenue has declined by 18.2% to N203.83 billion for the nine months ended September 30, 2025, compared to N249.13 billion in the same period of 2024. This decline has had a corresponding impact on the company’s profitability, with profit before tax plummeting by 88% to N1.88 billion from N15.24 billion in the same period of 2024.
The company’s cost management efforts have been commendable, with cost of sales increasing by only 2% to N187.15 billion. However, operating expenses have risen to N4.78 billion from N4.35 billion, reflecting the challenges of doing business in a volatile energy sector. The company’s working capital management has shown signs of improvement, with a shorter cash cycle of 102 days, down from 121 days in the previous year. However, this has been partially offset by a decline in the current ratio, indicating a potential liquidity challenge.
Despite these challenges, Conoil Plc’s management has demonstrated its commitment to continuous improvement, with plans to invest N9.62 billion in upgrading facilities, up from N1.2 billion in the previous year. This investment is expected to drive future growth and improve profitability, making the company more attractive to investors. The company’s focus on quality and excellence has been recognized, although specific awards and certifications are not mentioned. It is clear that Conoil Plc is committed to delivering high-quality products and services to its customers.
However, the company’s financial leverage has improved, with a reduction in term loans making it more attractive to investors. The company’s ability to delay payments to creditors has also helped to improve its cash management ability. Inventory management has also shown improvement, with stocks spending less time in the warehouse before being shipped to customers.
In conclusion, Conoil Plc faces significant challenges in its quest for profitability, but its commitment to continuous improvement and investment in upgrading facilities positions it well for future success. The company’s focus on quality and excellence is evident, and its efforts to improve its cash management ability and working capital management are expected to drive future growth and improve profitability.
Conoil Plc – Fine-Tuning Operations for a Brighter Future
In the midst of a challenging energy landscape, Conoil Plc has continued to fine-tune its operations, demonstrating its ability to adapt and thrive in a competitive environment. The company’s focus on improving its cash management ability has yielded positive results, with a re-jigged debt profile and improved liquidity.
The company’s working capital management has shown signs of improvement, with a shorter cash cycle of 102 days, down from 121 days in the previous year. This is largely due to the company’s ability to delay payments to creditors, stretching the period to 55 days from 36 days. However, this has been partially offset by a lengthening of the days receivable period to 26 days from 22 days, indicating that the company is taking slightly longer to collect payments from debtors.
Inventory management has also shown improvement, with stocks spending less time in the warehouse before being shipped to customers. Inventory days have reduced to 131 days from 135 days, indicating a more efficient supply chain.
Despite these improvements, Conoil Plc’s current ratio has declined, indicating a potential liquidity challenge. This is largely due to the company’s recourse to bank overdrafts, which have increased to N3.7 billion from zero in the previous year. However, the company’s overall financial leverage has improved, with a reduction in term loans making it more attractive to investors.
Conoil Plc’s management has demonstrated its commitment to continuous improvement, with plans to invest N9.62 billion in upgrading facilities, up from N1.2 billion in the previous year. This investment is expected to drive future growth and improve profitability, making the company more attractive to investors.
The company’s focus on quality and excellence has been recognized, although specific awards and certifications are not mentioned. It is clear that Conoil Plc is committed to delivering high-quality products and services to its customers.
In conclusion, Conoil Plc has made significant strides in fine-tuning its operations, improving its cash management ability, and driving growth through strategic investments. The company’s commitment to excellence and quality is evident, and its focus on continuous improvement positions it well for future success.
