Conoil Plc posts a 13.34% year-over-year rise in pre-tax profit for the second quarter of 2024 at 4.6 billion, up from 4.1 billion recorded in 2023.
According to the report released in the period ending July 30, 2023, a 71.79% year-over-year surge drove the pre-tax profit increase.
Net income also climbed by 13.25% year-over-year from 3.2 billion the previous year to 3.6 billion in Q2 of 2024.
This was propelled largely by a massive increase in revenue from the sale of white petroleum products.
Key highlights:
Revenue: 89.6 billion, 71.79% YoY
Cost of Sales: -81.3 billion, 77.00% YoY
Gross profit: 8.2billion, 33.12% YoY
Net Finance cost 1.2 billion, 246.47% YoY
Pre-tax profit 4.6billion, 13.34% YoY
Net Income 3.6billion, 13.25% YoY
Earnings per share N5.3,13.25% YoY
Commentary:
The company gained from a surge in the market demand for petroleum products, leading to a 71.79% year-over-year revenue increase in Q2 of 2024 compared to the previous year.
This led to a rise in the cost needed to manage the influx of revenue, as the cost of sales climbed by 77.00% YoY in Q2 of 2024 from -45.9 billion recorded in 2023.
Despite the rise in costs, the company reported a gross profit of 8.2 billion, which is a 33.12% year-over-year increase when compared with the previous year.
- White petroleum products—including diesel, kerosene, PMS, and low-pour fuel oil—made up 97% of reported revenue.
- Lubricant sales accounted for the remaining 3%.
Conoil’s year-over-year pre-tax profit ascent by 13.34% in Q2 of 2024 depicts the health and profitability needed to strengthen the confidence of shareholders.
At an earnings per share of N5.30, which appreciated from N4.68 recorded the previous year, the profit earned by the company per outstanding share of common stock increased by 13.25% year-over-year.
This was largely due to the increased number of shareholders, who drove the demand for the stock.
Conoil is currently trading at N144.00 per share after surpassing the technical level of N116.57.