Shares of Conoil Plc achieved a substantial 37.35% gain on the Nigerian Exchange for the trading week ending on Friday, closing at a share price of N260.00.
The share price appreciation is happening after the release of its third-quarter financial report, which revealed a pre-tax profit increase of N803 million to N5.02 billion and a 35.10% year-over-year surge in revenue to N68.5 billion.
Following the release, bullish market sentiment around the company’s stock grew in the trading week commencing November 4, 2024, as it consistently closed in the green for four consecutive days, driving its price from N189.30 to N260.00.
This performance placed Conoil as the third-highest gainer on the weekly advancers’ chart, ranking behind only JohnHolt and Eunisell.
Market trends and price movements
- Conoil started 2024 at a share price of N83.90, rebounding from a late-2023 dip that saw its value fall to N80.20, and went on to close January at N101.00, signaling a modest recovery.
- From February to June, the stock experienced minimal movement, with minor gains in April and May pushing it into the N105 range.
- The momentum shifted significantly in July as the share price soared by 37%, climbing from N105 to N144, driven by a robust trading volume of 8.2 million shares.
- August saw limited price action despite a trading volume of 2.7 million shares. However, September and October marked a resurgence, with the stock gaining 31.45% over the two months to close October at N189.30.
- As of the trading week ending November 8, Conoil’s bullish streak continued with a 37.35% weekly gain, at trading volumes of 5.2 million shares, pushing the price to a record high of N260.00 and bringing its year-to-date growth to 209.89%.
Possible Drivers of the Bullish Sentiment
- In July 2024, Conoil announced a 53% year-over-year revenue increase, reaching N201 billion for 2023. Notably, the company achieved 45% of its total 2023 revenue in just the first quarter of 2024, reporting N91 billion.
- July closed with a significant spike in market activity, as 8.2 million shares were traded, propelling the share price from N105.00 to N144.00.
- The company went on to release its Q2 financial statement in August, reporting a 13.34% year-over-year increase in pre-tax profit from N4.1 billion in 2023 to N4.6 billion in 2024, with the positive momentum from this announcement carrying into September and October.
- Conoil declared a final dividend of N3.50 per share in early October, followed by the November release of its Q3 financial results, which showed pre-tax profit rising to N5.02 billion.
- Following this release, the company’s share price jumped by over 37% in the week ending November 8.
Statement from the Chairman
In the company’s annual general report released in July, Conoil’s chairman, Dr. Mike Adenuga, outlined the organization’s commitment to long-term value creation for shareholders.
“The company remains motivated to create excellent value for its shareholders, ensuring that its share price remains on the rise. The task before the company is to spot and explore new opportunities and take calculated risks to reach strategic goals,” he stated.
Conoil’s financial performance and upward price trend reflect its ability to navigate a dynamic market environment.