Conoil Plc has proposed a dividend of N2.00 per share for the 2025 financial year, amounting to a total payout of N1.387 billion. This proposal comes despite a significant 77.1% decline in profit after tax, which fell to N2.01 billion for the year ended December 31, 2025.
The proposed dividend, which requires shareholder approval, represents a 42.9% decrease compared to the N3.50 per share distributed for the 2024 financial year. This reduction reflects the challenging profitability experienced during the review period.
The company's audited financial statements reveal that while revenue was maintained above the N300 billion mark, profitability was severely impacted by escalating finance costs and margin compression. Revenue for 2025 stood at N301.72 billion, a 6.62% decrease from N323.12 billion in the previous year.
Cost of sales decreased by 6.05% to N278.81 billion, leading to a 13.06% decline in gross profit to N22.91 billion. Operating profit also dropped by 13.73% to N12.90 billion.
The most substantial drag on earnings was the sharp increase in finance costs, which surged by 162.46% to N10.38 billion. This significant rise in borrowing costs eroded operating profit, causing profit before tax to plunge 77.03% to N2.53 billion, and consequently, profit after tax declined by 77.10% to N2.01 billion. Earnings per share fell by 77.06% to N2.90.
Despite the earnings contraction, the company's balance sheet shows an expansion in its asset base. Total Assets increased by 20.93% year-on-year to N139.01 billion. However, this growth was largely financed through debt, as Total Liabilities rose by 32.44% to N99.94 billion.
Borrowings specifically saw a substantial increase of 89.17%, reaching N54.24 billion, which constitutes over half of the total liabilities. This reliance on debt financing directly contributed to the heightened finance costs and the subsequent decline in profitability.
Shareholders’ Equity saw a slight decrease of 1.06%, ending the year at N39.07 billion. The figures indicate that liabilities grew at a faster pace than assets, highlighting an increasing leverage across the business.
The company's weak earnings performance has also affected its stock on the Nigerian Exchange (NGX). The stock opened the year at N187.20, fell to N169.00 on January 8, traded flat until March 9, 2026, when it rose to N185.90.
