Conoil Plc reported a 489.5% increase in profit after tax to N5.31 billion in the nine months ended September 30, 2026, compared with N900.42 million recorded in the corresponding period of 2025.
The petroleum marketing company’s revenue rose 95% to N280.12 billion from N143.65 billion, supported by higher sales during the period.
Despite the substantial increase in turnover, cost of sales climbed 92.1% to N254.09 billion from N132.28 billion, reflecting the significant cost associated with generating the additional revenue.
However, gross profit more than doubled to N26.03 billion from N11.36 billion, representing an increase of 129.1%.
The company’s gross profit margin improved to 9.3% from 7.9%, indicating that it retained a larger proportion of revenue after accounting for direct sales costs.
Conoil also recorded a sharp increase in financing expenses, which rose 172.8% to N12.99 billion from N4.76 billion in the corresponding period of 2025.
The higher finance costs absorbed nearly half of the company’s gross profit, highlighting the financial burden associated with funding its operations.
Administrative expenses increased 67.7% to N5.21 billion, while distribution expenses declined 21.3% to N1.85 billion.
Profit before tax consequently increased to N5.98 billion from N1.15 billion, while income tax expense rose to N672.47 million from N246.61 million.
Earnings per share improved to 765 kobo from 130 kobo, reflecting the significant increase in profitability.
Third-Quarter Profit Declines Despite Revenue Growth
Although Conoil recorded strong nine-month earnings, its third-quarter performance showed signs of pressure.
Revenue for the three months ended September 30, 2026, increased 55.7% to N100.23 billion from N64.39 billion in the corresponding quarter of 2025.
However, profit after tax declined 74.9% to N152.81 million from N608.36 million.
The decline was largely driven by higher financing expenses, which increased to N4.70 billion from N2.47 billion, alongside rising direct operating costs.
Profit before tax fell to N206.51 million from N774.99 million, despite revenue growth.
The quarterly performance suggests that the company’s strong nine-month profit growth was concentrated in the first half of the year, while higher financing costs weighed on profitability in the third quarter.
Borrowings Rise as Cash Balances Decline
Conoil’s statement of financial position showed that total assets increased to N149.11 billion as of September 30, 2026, from N139.37 billion at the end of December 2025.
Trade and other receivables rose 25.7% to N113.85 billion from N90.59 billion, while inventories declined to N12.81 billion from N22.39 billion.
Cash and bank balances fell 29.6% to N9.09 billion from N12.91 billion.
Meanwhile, borrowings increased 18% to N64.80 billion from N54.90 billion, reflecting a higher debt position.
Total equity rose to N44.55 billion from N39.24 billion, supported by retained earnings.
For investors, Conoil’s nine-month results demonstrate substantial revenue expansion and improved gross profitability.
However, the sharp decline in third-quarter earnings, rising borrowings and increasing finance costs suggest that sustaining profit growth will depend on the company’s ability to manage financing expenses and convert sales into stronger cash generation.
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