KEY POINTS
- Conoil’s profit before tax fell by 77 percent to 2.53 billion naira in 2025 from 11 billion naira in 2024.
- Revenue dropped 6.6 percent to 301.72 billion naira, while finance costs surged 162.5 percent to 10.4 billion naira.
- The company attributes the decline to high borrowing costs and slower revenue growth, planning cost-control measures for 2026.
Conoil Plc, one of Nigeria’s leading petroleum marketing companies listed on the Nigerian Exchange Limited, has reported a steep drop in profits for the 2025 financial year.
The company disclosed its unaudited results on Monday, showing that profit before tax fell by 77 percent, plummeting to 2.53 billion naira from 11 billion naira in 2024. Profit after tax mirrored this decline, dropping 77.1 percent to 2.01 billion naira compared with 8.77 billion naira the previous year.
The decline in earnings was attributed to both sluggish revenue growth and a sharp rise in finance costs. Conoil reported a 6.6 percent fall in revenue, earning 301.72 billion naira in 2025, down from 323.13 billion naira in 2024.
Finance costs, largely driven by interest on bank overdrafts, surged 162.5 percent to 10.4 billion naira from 3.95 billion naira, putting additional pressure on the company’s bottom line.
Company Responds to Market Pressures
The management of Conoil cited the rising cost of financing and broader economic pressures as key factors behind the decline. Analysts note that the combination of high borrowing costs and slowing revenue growth is straining petroleum marketers, particularly those dependent on both retail and wholesale operations.
Conoil’s results come as other major players in Nigeria’s oil sector, such as Oando and Unilever Nigeria, have reported varying performance trends in 2025, reflecting the volatile economic environment and shifting consumer demand patterns.
Despite the challenging financial performance, Conoil aims to stabilize operations and control costs in 2026. The company is expected to explore strategies to reduce reliance on expensive financing while seeking growth in retail distribution and strategic partnerships to boost profitability.
