Conoil Plc has reported a sharp 77.1 per cent decline in profit for the 2025 financial year, as higher finance costs and weaker revenue significantly weighed on earnings, despite a return to profitability in the fourth quarter.
The downstream oil marketer’s profit after tax fell to N2.01bn for the year ended December 31, 2025, from N8.77bn recorded in 2024, according to its audited financial statements released to the Nigerian Exchange.
Profit before tax declined by 77.0 per cent to N2.53bn, compared with N11.00bn in the previous year, while income tax expense dropped 76.8 per cent to N518.17m from N2.23bn, reflecting the company’s reduced earnings base.
Revenue for the year declined by 6.6 per cent to N301.72bn, down from N323.13bn in 2024, amid continued pressures in the downstream petroleum market. Cost of sales fell marginally by 6.1 per cent to N278.81bn, but the reduction was insufficient to cushion the impact of rising operating and financing costs.
As a result, gross profit slipped 13.1 per cent to N22.91bn from N26.35bn a year earlier.
Finance costs emerged as a major drag on performance, surging 162.5 per cent to N10.38bn in 2025 from N3.95bn in 2024, largely driven by increased borrowings. Total borrowings more than doubled to N54.24bn, compared with N28.68bn in the prior year.
Administrative expenses rose by 32.8 per cent to N6.11bn from N4.60bn, while distribution expenses declined sharply by 43.5 per cent to N3.90bn, down from N6.89bn in 2024.
Despite the weak full-year performance, Conoil recorded a turnaround in the fourth quarter, posting a profit after tax of N544.67m, compared with a loss of N732.88m in the same period of 2024. Revenue for the quarter increased to N97.89bn from N74.00bn, signalling improved sales momentum towards year-end.
Earnings per share dropped 77.1 per cent to 290 kobo, from 1,264 kobo in the previous year. The company did not declare a dividend for 2025, compared with a dividend of 350 kobo per share paid in 2024.
On the balance sheet, total assets rose 21.0 per cent to N139.01bn from N114.95bn, driven largely by a significant increase in property, plant and equipment, which climbed to N9.96bn from N3.97bn.
Trade and other receivables increased by 27.5 per cent to N91.66bn, reflecting higher credit sales, while inventories declined 25.9 per cent to N21.66bn from N29.25bn.
Cash and bank balances improved to N13.00bn from N7.26bn, although the company’s net cash position remained negative due to higher overdrafts.
Total liabilities rose sharply by 32.4 per cent to N99.94bn, compared with N75.46bn in 2024, highlighting increased leverage on the balance sheet. Shareholders’ funds edged down slightly by 1.1 per cent to N39.07bn from N39.49bn, while net assets per share eased to N5.63, from N5.69 a year earlier.
