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  • Afrinvest picks Conoil, Oando, UBA, GTB, 10 others as top stocks for 2016

    Investors looking for above average gains and a reflective stock portfolio to beat the downtrend in 2016 should concentrate on 14 stocks across five key sectors of the economy, according to the 2016 stock recommendation by Afrinvest Securities.

    The 2016 stock recommendation was based on the research and market intelligence prepared by analysts at Afrinvest Securities, a Lagos-based dealer on the Nigerian Stock Exchange (NSE) and member of Afrinvest (West Africa).

    The report portfolio was built around the key sectors such as banking, consumer and industrial goods, insurance, and oil and gas sectors.

    Afrinvest Securities picked 14 stocks across the five sectors with different rating of buy and accumulate, citing potential earnings and resilience to weather the tough operating environment.

    The stocks included Guaranty Trust Bank (GTB); United Bank for Africa (UBA); Zenith Bank International; Nestle Nigeria; Nigerian Breweries; Flour Mills of Nigeria; Dangote Sugar Refinery; Dangote Cement; AIICO Insurance; Continental Reinsurance; AXA Mansard Insurance; Oando, Conoil and Total Nigeria Plc.

    “One key theme that has come up in our analysis and valuation of companies is the tougher operating environment which is consequent on the weak macroeconomic backdrop. Slowing Gross Domestic Products (GDP) growth has been a major headwind on sales of manufacturing companies and risk assets creation by banks. Elevated inflationary pressures and foreign exchange shortages have driven-up costs whilst uncertain direction of fiscal and monetary policy have together worsened the risk landscape and impaired market valuation of assets,” Afrinvest Securities stated.

    According to the report, GDP growth may rebound to 3.5 per cent in 2016 from estimated 3.0 per cent in 2015, largely due to expectation on fiscal stimulus. Inflationary pressure is however predicted to hit double digit while foreign exchange supply constraint would also remain a challenge in 2016 given the negative sentiments deterring autonomous foreign exchange inflow and bearish outlook for oil prices.

    The report noted that these mutually reinforcing factors would combine to pressure revenue, earnings and margins across sectors and remain a drag on market sentiments. The report assumed equity risk premium and inflation assumptions to be 11.4 per cent and 10.1 per cent respectively.

    Afrinvest Securities said while it rated most of the banking stocks, its top picks in the sector were GTB, UBA and Zenith Bank, due to their “rich return on equity, lower cost profile and relatively healthier balance sheet, are positive driver of earnings and sentiment”.

    “We believe Tier-1 banks will continue to deliver superior earnings performance relative to Tier-2 and are better equipped to weather the storm in light of the current challenges, we maintain that investors underweight on Tier-2 banks in favour of Tier-1 banks.

    “We believe most of the banking tickers have already been heavily discounted for projected weaker forward earnings to a point that positive earnings surprises in 2016 will have massive positive knock-on impacts on pricing. Our Tier-2 coverage has higher upsides but we advocate selective and cautious positioning with a keen eye on sentiment drivers,” Afrinvest stated.

    The report noted that while the overall outlook for the consumer goods sector appears negative, there are still opportunities in specific stocks in the sector, adding that sector pricing over a long term horizon presents a fantastic opportunity for discerning investors.

    The report added that the top picks in the consumer goods sector-Nestle Nigeria, Nigerian Breweries, Flour Mills of Nigeria and Dangote Sugar Refinery were selected based on their continuous investment in capacity and expansion, leadership of their respective segments and investor sentiments towards these stocks.

    “In addition, the stocks are so selected given their relative defensiveness as blue chip stocks relative to other stocks within the sector,” Afrinvest said in relation to its top picks in the consumer goods sector.

    The report said Dangote Cement stands out in the industrial goods sector because of its continental operations and dominance of the domestic market.

    According to analysts, as the struggle for market share continues in the cement industry and margins contract, companies with strong volumes growth potential and cost leaders with capacity to grow earnings per share are in better position to deliver better returns.

    “Industry price and cost leader, Dangote Cement is best positioned for this with over 60 per cent of Nigeria’s market share and increased exposure to other regions in Africa with strong earnings potential,” Afrinvest stated.

    Analysts said Dangote Cement’s share price could rise to N183.92 per share over the next 12 months.

    The report expected gross premium growth in the insurance sector to remain positive in 2016, noting that while macroeconomic challenges remain a critical concern, demographic attractiveness and low insurance penetration rate in Nigeria accentuates the compelling growth potential of the sector.

    The report added that tighter regulatory activities which has brought about the implementation of “No Premium No Cover” rule, the launching of the micro insurance scheme and the Takaful insurance as well as the recent claims payment guidelines are expected to strengthen recent gains observed in the sector.

     

    Against the negative sentiments that had trailed Oando since the release of its 2014 results, analysts said the stock appeared to have bottomed out and now presents attractive buy opportunity for investors.

    It noted that “against the colossal sell-off in Oando following the release of its 2014 results, the stock has bottomed out and fundamental analysis gives a ‘buy’ rating”.

    Afrinvest Securities also placed buy on Conoil while urging investors to accumulate shares of Total Nigeria.

    “Since the fall in global oil prices, investor sentiments towards oil and gas stocks have been largely dampened due to the blue outlook. Following this, downstream Nigerian oil companies suffered immediate massive sell-offs. However, our analysis of the companies within our coverage in the downstream sector indicates that bottom line declines have been against foreign exchange illiquidity and subsidy delays. Going forward, with technical removal of subsidy through the price modulation template and diversification strategies of some, we expect an improvement in company returns,” Afrinvest stated.

  • Conoil remains profitable amidst headwinds

    Conoil remains profitable amidst headwinds

    Conoil Plc, one of Nigeria’s major petroleum marketing companies, recorded a pre-tax profit of N1.8 billion in the third quarter, bracing the global and national headwinds that had seen many oil companies caving in under the weights of impairments.

    Interim report and accounts of Conoil for the nine-month period ended September 30, 2015 showed that the company’s bottom-line remained positive, although key figures were below the comparable period of 2014.

    The oil and gas sector has continued to struggle with the global decline in crude oil market, the distortions in the Nigerian downstream sector and Nigeria’s foreign exchange crisis, which have forced the forex-dependent sector to take losses on the sales and profit sides.

    The report showed that the company’s assets increased from N86billion for the same period in 2014 to N96billion in 2015. Turnover stood at N60.16 billion while pre and post-tax profits stood at N1.76 billion and N1.2 billion respectively by September 2015. With these, earnings per share stood at N1.72. Conoil had recently distributed a dividend per share of N1 for the 2014 business year.

    Conoil attributed the modest performance to its focused strategy and cost control mechanisms.

    “We returned a good performance notwithstanding the difficult operating environment due primarily to the efficient product procurement process put in place in the second half of the year,” the company stated in an explanatory statement released yesterday.

    According to the company, improved efficiency translated to high profit margin on product sales, but the profit for the period would have been much better save for the high finance cost, consequent upon the long outstanding large receivable from the Petroleum Support Fund.

    Conoil had recorded a turnover of N104.22 billion, profit before tax of N2.1 billion and profit after tax of N1.4 billion in the comparable nine-month period of 2014. Earnings per share was then N2.06.

    Challenges in the downstream have been overwhelming and analysts are of informed opinion that if the government continues to prolong the payment of long overdue subsidy refunds outstanding to the marketers, their profitability will continue to dwindle and return on investments for shareholders adversely affected.

    Notwithstanding the gloomy picture, the company in its statement promised to continuously transform its business and prepare for the increasingly fierce competition.

    “We will consistently pursue initiatives that will enable our brands, processes and people drive our corporate vision and ultimately drive value for our shareholders”, the company stated.

     

  • Conoil urges safe driving

    Conoil urges safe driving

    Conoil Plc has congratulated Muslims on the successful completion of the “rigorous period of prayer, fasting, charity-giving and self-denial”.

    In a statement in Lagos, the company enjoined Nigerians to ensure safe driving during the celebrations.

    It urged Muslims to take the “maximum benefit from the wisdom and teachings gained in the holy month to restore, revive and regenerate human spirituality and radically modify personality and character to promote peace, harmony and love across all tribes, nations and religions”.

    “Nigeria, with its vast natural and human resources, still has a lot to offer the world. We only need to relate with one another with sincerity, compassion and selflessness to harness our full potentials. If we resolve to live, at all times, with the lessons learnt during Ramadan, our country will be the better for it,” the company said.

  • Conoil wins outdoor advert awards

    Conoil Plc has been declared the overall winner of the Outdoor Advertising Association of Nigeria (OAAN) annual exhibition and poster award for the year.

    According to OAAN, Conoil’s advert on its flagship engine oil, Quatro was adjudged the best in outdoor advertising in Nigeria. The company’s Quatro outdoor advert was also declared the best in the petroleum industry.

    On the award, the management of Conoil said the awards are a reflection of the quality of the company.

    “The award is a reflection of our dedication, initiative and talent as Team Conoil. It is yet another proof of our trail-blazing position in the downstream sector of the petroleum industry, and the nation’s business community in general,” the company stated.

    The award was held at the Intercontinental Hotel, Lagos, and had in attendance, captains of industries, top federal and state government officials, media and advertising gurus.

    The OAAN Exhibition and Poster Award is the industry’s highest platform that rewards and promotes creative excellence in outdoor advertising.

    The panel of judges for the highly competitive award was drawn from among the sub-sectors relevant to the practice of advertising in the country including Advertising Practitioners Council of Nigeria (APCON), Association of Advertising Agencies of Nigeria (AAAN), Advertisers Association of Nigeria (ADVAN), OAAN, Media Independent Practitioners Association of Nigeria (MIPAN), the Academia, Brand Journalism Desk and the Consumer Protection Council.

    This year’s edition was the ninth in the series and had over 110 entries submitted for the various categories from telecommunications to banking, diary food and beverages, non-alcoholic drinks, oil and gas, household products and automobile. Others include pharmaceuticals/cosmetic information/computer and technology (ICT), alcoholic drinks, electrical/electronics, public service and real estate.

    According to the organisers, Conoil‘s advert won the grand poster award because of its creativity and originality, the ease of product identification and effective illustration of its visual. The judges also considered the relevance of its message, its simplicity, credibility and impact.

    The theme for this year’s event, “Be Bold”, was chosen, according to OAAN, “because of our conviction that creativity is largely a product of ingenuity and it takes thinking out of the box to come up with a message that will connect the mind and the pocket of the viewer with the product.”

    OAAN’s goal for the outdoor medium in the 21st century is to constantly look for new ways, new forms and new structures to promote freshness, relevance and creative visibility while working assiduously towards impeccable professionalism.

    Outdoor advertising has grown significantly in Nigeria from its crude beginning and has become a platform for marketing communication. The industry has grown notably in terms of format and types of structure.

  • Conoil opens station in Abuja

    Conoil opens station in Abuja

    Oil marketing giant, Conoil Plc, has  re-opened its station at Herbert Macaulay Road, Abuja to serve the  needs of the residents of the Federal Capital Territory (FCT).

    The station is fashioned after the company’s mega station model it pioneered in the petroleum marketing industry, 14 years ago.

    Designed to meet the changing needs of consumers, the company’s one-stop mega station model not only sells petroleum products, but also offers a variety of value-added consumer services that delight motorists.

    The Abuja ultra-modern station is equipped with hi-tech, pressurized nozzle pumps and gadgets with the capacity to dispense fuel to an average of 15 cars in just five minutes at 40-litre fuel per car. The firm said motorists were assured of prompt, reliable and efficient service delivery 24 hours daily, and seven days weekly.

    With 270,000 litre storage capacity for petroleum motor spirit (PMS), 90,000 litres for AGO (diesel) and 45,000 litre for DPK (kerosene), the station has 19 multi-product nozzles to dispense petrol, diesel and kerosene.

    The product capacity of the station and its quick and efficient service delivery would be most expedient during rush hour and petrol scarcity.

    The company said it had, through the reconstruction of the Abuja station, reiterated its determination to continue to set standards in the industry by ensuring superior service delivery and superior customer satisfaction.

    Conoil said it  had proved its determination to set the pace in customer service delivery by changing the face of retail business with enhanced customers’ fuelling experience.

    According to the company, the strategy is to provide top quality products and convenience services that would guarantee customer loyalty.

    It added that it would not relent  to increase visibility of its quality products and services across the country and in the West African sub-region.

  • Shareholders storm Uyo for Conoil AGM

    Shareholders storm Uyo for Conoil AGM

    ALL roads lead to Uyo, the Akwa Ibom State capital today as shareholders of Conoil Plc, assemble at the fame Land of Promise for the Annual General Meeting (AGM) being hosted by the frontline petroleum products marketing company.

    Shareholders are upbeat that the 44th AGM holds a lot of promise for them if the outcome of the past year is anything to go by.

    Reflecting on last year’s outing, market analysts believe the proposed payment of N4.00 per share for every 50kobo share was a promise kept by the frontline petroleum products marketing company, after posting impressive performance across its business segments in the financial year ended December 2013.

    The Chairman of Conoil Plc, Dr. Mike Adenuga had, while addressing shareholders at the company’s 43rd Annual General Meeting (AGM) in October 2013, assured investors that the company remained committed to maintaining its leadership position in the downstream petroleum sector by growing its business and creating an enduring value for its shareholders and other stakeholders.

    “We are building stronger financial position and creating enduring value for our shareholders. We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery.”

    Elaborating on the strategies to be adopted to achieve the set target, Adenuga revealed that the company had strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    “Our strategy in retail is to provide top quality products and services that will make customers want to always patronise us for their fuel and non-fuel needs. We are not resting on our oars on our aggressive acquisition and expansion drive that aims at increasing, substantially, the number of our retail outlets nationwide,” Adenuga had stressed, adding: “Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.”

    Expectedly, Conoil’s full year results showed that revenue grew by 6.4 per cent to reach N159.54 billion as against N149.99 billion posted in 2012. Gross Profit shot up to N17.04 billion, which represents over five per cent rise above the previous years.

    The company also posted 289 per cent increase in Profit Before Tax from N1.15 billion in 2012 to N4.58 billion, while it recorded Profit After Tax of N3.07 billion, which amounts to 330 per cent increase over what was posted in 2012. The report also showed a stronger balance sheet as retained earnings boosted shareholders’ funds to N18.04 billion in 2013 compared with N15.66 billion in 2012.

    Market analysts said the impressive dividend and profit and loss accounts performance were in line with market’s expectations given Conoil’s consistent growth over the years.

    The company in a press statement attributed the great financial outing to improved cost efficiency, significant reduction in interest expense and a strong hold on cost of sales.

    The company added that its performance was driven by revenue increase from its nationwide retail outlets, especially its newly commissioned mega stations. It was also augmented by additional income streams from its world-class quality lubricant products.

    Conoil said it stepped up engine oil export to West African markets as well as entered into joint venture partnerships with leading car manufacturing companies.

    It added that its income was also bolstered by ancillary services including marketing of Low Pour Fuel Oil (LPFO).  It would be recalled that the front line oil products marketer had shown signs of a sound financial year after posting 341 per cent increase in profit before tax while its profit after tax went up by 329 percent in the third quarter of 2013.

    In his comments on the results, Adenuga said the company had consolidated its competitiveness in the different segments of the business. “We also pursued and sustained strategic expansion of our retail network across the length and breadth of the country with a view to ensuring that a lot more people, especially in the remotest parts of the country, have access to our superior products and services.”

    While assuring the shareholders that Conoil is equipped with all the essential materials, intellectual and human resources, to surmount the challenges ahead in the downstream petroleum sector, Adenuga stated that the company has been positioned to take full advantage of opportunities that could arise from the Federal government’s economic reforms, by leveraging on the solid base built over the years.

    “Greater attention will be devoted to cutting operational costs in the different segments of the business, while still maintaining and improving on the quality of our products and services. With renewed commitment, we will explore developing and emerging markets, even as we continue to build on our strengths in areas where we perform well, with good growth and profitability,” Adenuga added.

    Indeed, the front line oil-products marketer had shown signs of a sound financial year after posting 341 per cent increase in profit before tax while its profit after tax went up by 329 per cent in the third quarter of last year.

    The company was simply reaping from the fruit of strategic planning embarked upon in recent times. At the beginning of last year, Conoil had launched the second phase of its comprehensive four-year expansion plan started three years ago, with the inauguration of new ultra-modern retail outlets spread across the country. Conoil had earmarked about N4.8 billion for the project which is targeted to grow the company’s sales and revenue by over 65 per cent.

    Conoil embarked on the plan to adequately prepare for industry-specific challenges, ensure impressive growth in its performance indicators and consolidate its leadership position in the downstream petroleum business.

    The company had commenced the ambitious plan with the upgrade of its storage tanks at the company’s depots nationwide to accommodate bulk product imports.

    In pursuant of this, the company increased the storage tanks for white products – Premium Motor Spirit (PMS), diesel and kerosene – to 80,000 metric tonne, to double the capacity of its storage facilities at its Apapa installation.

  • ‘Conoil remains on the path of growth’

    ‘Conoil remains on the path of growth’

    AT a time when many publicly quoted companies can hardly break even and are barely surviving, some have continued to weather the storm and turbulence occasioned by the lull and grinding economic crunch.

    Interestingly, among the few companies that have made good is Conoil Plc, the frontline petroleum products marketing company.

    The increasing shareholder value and steady growth attained by the company over the last few years is self-evident of its overall success. That much the company’s board can attest to.

    In the view of market analysts, the proposed payment of N4.00 per share for every 50kobo share to shareholders was a promise kept by the company, which followed from its impressive performance across its business segments in the financial year ended December 2013.

    Recalled that the Chairman of Conoil Plc, Dr. Mike Adenuga had, while addressing shareholders at the company’s 43rd Annual General Meeting (AGM) in October 2013, assured investors that the company remained committed to maintaining its leadership position in the downstream petroleum sector by growing its business and creating an enduring value for its shareholders and other stakeholders.

    “We are building stronger financial position and creating enduring value for our shareholders. We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery,” he noted.

    While expatiating on the strategies to be adopted to achieve the set target, the Conoil boss disclosed that the company had strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    “Our strategy in retail is to provide top quality products and services that will make customers want to always patronise us for their fuel and non-fuel needs. We are not resting on our oars on our aggressive acquisition and expansion drive that aims at increasing, substantially, the number of our retail outlets nationwide,” Adenuga had stressed, adding, “Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.”

    Expectedly, Conoil’s current full year results showed that revenue grew by 6.4% to reach N159.54 billion as against N149.99 billion posted in 2012. Gross Profit shot up to N17.04 billion, which represents over 5% rise above the previous years.

    The company also posted 289% increase in Profit Before Tax from N1.15 billion in 2012 to N4.58 billion, while it recorded Profit After Tax of N3.07 billion, which amounts to 330% increase over what was posted in 2012. The report also showed a stronger balance sheet as retained earnings boosted shareholders’ funds to N18.04 billion in 2013 compared with N15.66 billion in 2012.

    Market watchers further noted that the impressive dividend and profit and loss accounts performance were in line with market’s expectations given Conoil’s consistent growth over the years.

    The company in a press statement attributed the great financial outing to improved cost efficiency, significant reduction in interest expense and a strong hold on cost of sales.

    The company added that its performance was driven by revenue increase from its nationwide retail outlets, especially its newly commissioned mega stations. It was also augmented by additional income streams from its world-class quality lubricant products.

    Conoil said it stepped up engine oil export to West African markets as well as entered into joint venture partnerships with leading car manufacturing companies.

    It added that its income was also bolstered by ancillary services including marketing of Low Pour Fuel Oil (LPFO).  It would be recalled that the front line oil products marketer had shown signs of a sound financial year after posting 341 percent increase in profit before tax while its profit after tax went up by 329 percent in the third quarter of 2013.

    Commenting on the results, Adenuga said the company had consolidated its competitiveness in the different segments of the business. “We also pursued and sustained strategic expansion of our retail network across the length and breadth of the country with a view to ensuring that a lot more people, especially in the remotest parts of the country, have access to our superior products and services.”

    While assuring the shareholders that Conoil is equipped with all the essential materials, intellectual and human resources, to surmount the challenges ahead in the downstream petroleum sector, Adenuga stated that the company has been positioned to take full advantage of opportunities that could arise from the Federal government’s economic reforms, by leveraging on the solid base built over the years.

    “Greater attention will be devoted to cutting operational costs in the different segments of the business, while still maintaining and improving on the quality of our products and services. With renewed commitment, we will explore developing and emerging markets, even as we continue to build on our strengths in areas where we perform well, with good growth and profitability,” Adenuga added.

    Indeed, the front line oil-products marketer had shown signs of a sound financial year after posting 341 percent increase in profit before tax while its profit after tax went up by 329 percent in the third quarter of 2013.

    The company was simply reaping from the fruit of strategic planning embarked upon in recent times. At the beginning of 2013, Conoil had launched the second phase of its comprehensive four-year expansion plan started three years ago, with the commissioning of new ultra-modern retail outlets spread across the country. Conoil had earmarked about N4.8 billion for the project which is targeted to grow the company’s sales and revenue by over 65 percent.

    Conoil embarked on the plan to adequately prepare for industry-specific challenges, ensure impressive growth in its performance indicators and consolidate its leadership position in the downstream petroleum business.

    The company had commenced the ambitious plan with the upgrade of its storage tanks at the company’s depots nationwide to accommodate bulk product imports.

    In pursuant of this, the company increased the storage tanks for white products – Premium Motor Spirit (PMS), diesel and kerosene – to 80,000 metric tonne, to double the capacity of its storage facilities at its Apapa installation.

    Another major plank of the expansion programme was the construction of the company’s multi-billion naira Port Harcourt depot which has the capacity to hold 70,000 metric tonne of various petroleum products with the propensity to dispense 5.5 million litres per day. The Port Harcourt depot complements the company’s flagship installation in Apapa, Lagos, providing easy access to fuel imports and easing the pressure on available jetties and other port infrastructures in Lagos.

    Conoil, which controls about 30 per cent of the nation’s lubricant market, has also committed substantial investments to upgrade and expand its lubricant blending plants at its depots at Apapa, Lagos, Port Harcourt and Kano with a view to meeting and surpassing customers’ ever increasing demand for its quality engine oil.

    The company’s lubricant business received a major boost during the financial year under review, when it was admitted into the ECOWAS Trade Liberalization Scheme (ETLS), which afforded the company the opportunity to export its high grade, proudly made in Nigeria motor engine oils to established markets in the sub-region duty free.

    The ETLS was adopted by ECOWAS member states to eliminate trade barriers and facilitate trade integration, improve the foreign exchange earnings of companies of member states and create more jobs in their respective countries.

    Also, the company, through innovation in the production and distribution of Liquefied Petroleum Gas (LPG) from the state-of-the-art LPG bottling plant located in Ikeja, Lagos, launched itself as a leader in the provision of services that are of world-class standards to consumers.

  • Conoil grows profit by 298% to N4.6b

    Conoil grows profit by 298% to N4.6b

    Conoil Plc recorded impressive bottom-line in the immediate past year as the petroleum-marketing company rode on the back of improved cost efficiency and significant reduction in interest expense to grow its pre-tax profit by 298 per cent.

    Key extracts of the audited report and accounts of Conoil Plc for the year ended December 31, 2013 showed that the company’s average profit in 2013 was nearly four times more than the previous year. Average pre-tax profit margin leapt to 2.87 per cent in 2013 as against 0.77 per cent in 2012.

    While turnover recorded modest growth of 6.4 per cent, a strong hold on cost of sales and 46 per cent reduction in finance expense underpinned strong bottom-line performance. After taxes, net profit and earnings per share rose by 329 per cent and 330 per cent respectively.

    With the significant improvement in the bottom-line, the board of directors of the company has recommended increase in cash dividends to shareholders by 300.6 per cent to N2.78 billion. A breakdown of the dividend recommendation implies that shareholders would receive a dividend per share of N4, representing an increase of 300.6 per cent on N1 paid for the 2012 business year. Conoil had distributed N693.95 million as gross dividend for the 2012 business year.

    The current dividend would be paid to shareholders on the register of the company as at August 25, 2014. Shareholders of the company are expected to approve the dividend payment at the annual general meeting on September 26, 2014, in Uyo, Akwa Ibom. The dividend would subsequently be posted to shareholders on October 6, 2014.

    The audited report showed that turnover rose from N149.99 billion in 2012 to N159.54 billion in 2013. Gross profit rose slightly to N17.04 billion in 2013 as against N16.16 billion in 2012. As finance cost halved from N4.17 billion to N2.25 billion, profit before tax jumped from N1.15 billion in 2012 to N4.58 billion in 2013. After taxes, net profit leapt to N3.07 billion as against N714.98 million. Earnings per share thus quadrupled to N4.42 in 2013 compared with N1.03 in 2012.

    Management of Conoil have said they expected to continue to drive the performance of the company with revenue increase from its nationwide retail outlets, especially newly commissioned mega stations. Performance was also expected to be augmented by additional income streams from new lubricant products as well as expected increase in probable revenue from the fully-deregulated lubricant business.

    With its new production plant in Port Harcourt, Conoil plans to step up engine oil exports to West African markets as well as enter into joint venture partnerships with leading car manufacturing companies for the use of Conoil lubricants in their vehicle engines.  It also expects additional incomes from ancillary services including marketing of Low Pour Fuel Oil (LPFO) and Bitumen, which were reactivated in the first half of 2013 and were expected to boost sales as from the second half.

    At the company’s last meeting with shareholders, chairman, Conoil Plc, Dr. Mike Adenuga, assured that the company has a robust growth strategy that places emphasis on continued investments and delivery and expansion of quality products and services.

    According to him, the future outlook of the company remains bright as it has built stronger financial position and facilities that will create enduring value for shareholders.

    “We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery. We firmly believe that such a robust strategy will ensure continued growth and stronger position in our core markets”, Adenuga said.

    He outlined that the company’s strategy is to provide quality products and services that will make customers want to patronize its fuel and non-fuel products adding that the company would continue its aggressive acquisition and expansion drive that aims at increasing, substantially, the number of its retails outlets nationwide.

    Adenuga noted that as part of the strategy to shore up the bottom-line, the company has strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    According to him, Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.

  • Conoil increases cash dividends by 301% to N2.8b

    Conoil increases cash dividends by 301% to N2.8b

    The board of directors of Conoil Plc has recommended increase in cash dividends to shareholders by 300.6 per cent.

    A regulatory filing obtained yesterday indicated that the board of directors of Conoil, at its meeting on Monday, approved the audited report and accounts of the company for the year ended December 31, 2013 including distribution of a gross dividend of N2.78 billion as cash dividends for the business year.

    A breakdown of the dividend recommendation implies that shareholders would receive a dividend per share of N4, representing an increase of 300.6 per cent on N1 paid for the 2012 business year. Conoil had distributed N693.95 million as gross dividend for the 2012 business year.

    The current dividend would be paid to shareholders on the register of the company as at August 25, 2014. Shareholders of the company are expected to approve the dividend payment at the annual general meeting on September 26, 2014, in Uyo, Akwa Ibom. The dividend would subsequently be posted to shareholders on October 6, 2014.

    Also, the board appointed Mr. Charles Uwaechie as an executive director with immediate effect.

    Although the details of the company’s full-year results were not available as at press time, Conoil had shown impressive earnings in 2013. Nine-month report of Conoil for the period ended September 30, 2013 showed that pre and post tax profits rose by 341 per cent and 329 per cent respectively. While sales growth was modest at 6.0 per cent, the company had leveraged on increasingly efficient cost management and financing structure. Turnover rose to N121.80 billion in 2013 as against N114.77 billion in comparable period of 2012.

    Profit before tax jumped from N699.42 million to N3.08 billion while profit after tax leapt to N2.09 billion as against N487.22 million recorded in corresponding period of 2012. With these, earnings per share stood at N3.01 by September 2013 as against 70 kobo by September 2012.

    Management of Conoil had said they expected to drive performance with projected 65 per cent revenue increase from its nationwide retail outlets, especially newly commissioned mega stations. Performance was also expected to be augmented by additional income streams from new lubricant products launched earlier in the year as well as expected 72 per cent increase in probable revenue from the fully-deregulated lubricant business.

    With its new production plant in Port Harcourt, Conoil plans to step up engine oil exports to West African markets as well as enter into joint venture partnerships with leading car manufacturing companies for the use of Conoil lubricants in their vehicle engines.  It also expects additional incomes from ancillary services including marketing of Low Pour Fuel Oil (LPFO) and Bitumen, which were reactivated in the first half of 2013 and were expected to boost sales as from the second half.

    At the company’s last meeting with shareholders, chairman, Conoil Plc, Dr. Mike Adenuga, assured that the company has a robust growth strategy that places emphasis on continued investments and delivery and expansion of quality products and services.

    According to him, the future outlook of the company remains bright as it has built stronger financial position and facilities that will create enduring value for shareholders.

    “We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever growing customers, with total commitment to excellent service delivery. We firmly believe that such a robust strategy will ensure continued growth and stronger position in our core markets”, Adenuga said.

    He outlined that the company’s strategy is to provide quality products and services that will make customers want to patronize its fuel and non-fuel products adding that the company would continue its aggressive acquisition and expansion drive that aims at increasing, substantially, the number of its retails outlets nationwide.

    Adenuga noted that as part of the strategy to shore up the bottom-line, the company has strengthened and consolidated its leadership position in the aviation business with investment in the acquisition of new world-class equipment to meet the demands, on real time basis, of the company’s ever-growing local and international clientele.

    According to him, Conoil’s future is rosy because the company is constantly thinking ahead and acquiring additional capacity that is necessary for growth and profitability, despite the unpredictability of the economic environment.

  • Conoil has prospects for high returns, say analysts

    Analysts at Dynamic Portfolio Limited have picked Conoil Plc as a stock that could deliver high returns to investors given the company’s earnings and share pricing trend.

    The analysts based their projections on expected substantial growth in the company’s full-year earnings for the period ending December 31, 2013 as well as its traditional dividend payment policy of reflecting improved earnings in dividend payout.

    According to the analysts, a cursory look at the company’s profit margins reveals an increasing trend compared with the results at the corresponding quarter in 2012. Its profit before tax has gradually increased from N549.601 million in first quarter of 2013 to N3.084 billion by third quarter ended September 30, 2013 while profit after tax has also improved from N366.905 million to N2.088 billion during the same period.

    “This suggests that the company has clearly out-performed the previous year both in top-line and should exceed its bottom-line performance at the current run-rate,” analysts stated.

    The analysts noted that Conoil, which has been the toast of investors in recent weeks, could sustain its pricing trend and close the year around N72 per share, in spite of expected profit-taking on substantial gains in recent weeks.

    According to the analysts, compared to its peers, Conoil’s earnings per share which measures the return on investments, is projected to rise to N4 for the full year 2013 based on the company’s previous quarterly performances, while price earning ratio (P/E) is projected to improved considerably.

    “Consequently, an estimated market price of at least N72 per share will be achievable by the end of the full year 2013, taking into cognizance the performance of Conoil Plc and peer group comparison,” analysts noted.

    They advised investors to invest in the stocks now ahead of a bountiful harvest in the nearest future noting that the company’s impressive performance was linked to its innovative means of manufacturing and distributing products as well as huge financial investments in developing high-performance products and in the provision of services that matched and surpassed international standards.

    “Conoil has continually set new standards in fuel retailing with world-class facilities and groundbreaking marketing initiatives that endear it to customers and place it far ahead of competition. Conoil has grown an expansive distribution network throughout the country,” analysts stated.

    Conoil has been one of the fastest rising stocks on the Nigerian Stock Exchange (NSE) in recent weeks as investors continue to respond positively to the company’s earnings reports.

    It would be recalled that the company had promised that, barring any unforeseen circumstances, it would sustain the impressive performance achieved in the first half of this year, in the latter part of the year and meet its set targets, including juicier returns for shareholders.

    To achieve its objective, the company said it had strengthened and repositioned its core businesses, with huge investments in retail network expansion, which involved building new multi-million naira mega stations spread across the country and located in high traffic areas in Onitsha (Anambra), Port Harcourt (Rivers), Makurdi (Benue), Jibia (Katsina), Jebba (Kwara) and Lagos, targeted at growing sales and revenue by over 65 per cent.

    Chairman, Conoil Plc, Dr. Mike Adenuga, had during the company’s 43rd Annual General Meeting, also assured shareholders that the company remained committed to growing its business to maintain its leadership position in the downstream petroleum sector.