Conoil Plc has amended its third-quarter 2024 financial report following the discovery of system-related errors attributed to power challenges, which resulted in the duplication of some transactions.
These discrepancies affected key financial metrics, including the cost of sales and distribution expenses.
The corrected report has been submitted to the Nigerian Exchange Limited (NGX), replacing the previous version, and the company has issued a notice to update investors on these adjustments.
Key Financial Corrections
The amendment led to several important updates in Conoil’s financial performance:
1. Cost of Sales: Reduced by N200 million, now reported at N60.54 billion, compared to the initial N60.74 billion. This adjustment raised Conoil’s gross profit to N8.02 billion from the previously reported N7.82 billion.
2. Distribution Expenses: Decreased by N603 million to N1.59 billion from the earlier figure of N2.19 billion, contributing to a reduction in total expenses.
3. Profit Before Tax: Following the revisions, Conoil’s profit before tax increased by N803 million to N5.02 billion, compared to the initially reported N4.22 billion.
4. Income Tax Expense: Increased by N15.5 million, resulting in an updated income tax expense of N923 million, up from the previous N907.5 million.
5. Statement of Financial Position:
- Retained Earnings: Increased by N787.5 million to N41.1 billion.
- Trade and Other Payables: Reduced by N803 million, now totalling N31.28 billion.
- Current Tax Payable: Adjusted upward by N15.5 million, bringing the figure to N6.98 billion.
6. Statement of Cashflows:
- Profit Before Tax: Revised up by N803 million, now at N15.24 billion.
- Positive Change in Trade & Other Payables: Decreased by N803 million, amounting to N4.71 billion.
7. Statement of Changes in Equity:
- Profit for the Period: Increased by N787.5 million, resulting in a revised figure of N12.12 billion.
Revenue and Profit Overview
Despite these amendments, Conoil’s overall financial position for Q3 2024 remains strong. The company reported revenue of N68.5 billion and a pre-tax profit of N5.02 billion for the period.
- The previously submitted report, which contained errors, had indicated a lower pre-tax profit of N4.22 billion.
- Conoil’s Q3 pre-tax profit compares to the N3.2 billion reported in the same period a year ago.
- For the full 9 months of the year, pre-tax profits summed up to N15.2 billion compared to N11 billion same period in 2023.
Apology and Assurance from Conoil
Conoil Plc has apologized to the NGX and its investors for any inconvenience caused, explaining that the errors were promptly corrected once identified.
- The company assured stakeholders that the technical issues responsible for the errors have been resolved, and it remains “committed to maintaining high standards of accuracy and transparency” in financial reporting.
- The revised figures highlight an improved financial outlook for Conoil, with significant increases in gross profit and profit before tax.