KEY POINTS
- Conoil’s nine-month profit after tax surged 262% to ₦5.31 billion.
- Revenue rose 37% to ₦280.1 billion, driven mainly by higher fuel sales.
- Third-quarter profit fell 75% as finance costs nearly doubled to ₦4.7 billion.
Conoil Plc, the Nigerian fuel marketing company controlled by billionaire Mike Adenuga, has reported a 262% increase in profit after tax for the first nine months of 2026, supported by stronger fuel sales and higher revenue.
The Lagos-listed company’s profit after tax rose to ₦5.31 billion in the nine months ended September 30, compared with ₦1.46 billion recorded during the same period in 2025, according to its unaudited financial results approved by the board on October 29.
Revenue increased by 37% to ₦280.1 billion from ₦203.8 billion a year earlier, while profit before tax climbed to ₦5.98 billion from ₦1.88 billion.
Earnings per share also rose to 765 kobo from 211 kobo, reflecting the company’s stronger overall performance during the period.
However, rising borrowing costs significantly reduced profitability in the third quarter, despite an increase in sales.
Fuel sales drive revenue growth
Conoil’s performance was largely supported by increased sales of petroleum products, including petrol, diesel, kerosene and aviation fuel, collectively known as white products.
Revenue from these products rose by 40% to ₦274.3 billion during the nine-month period, accounting for nearly all the company’s total revenue.
In contrast, lubricant sales declined by 24% to ₦5.86 billion, indicating weaker performance in that segment.
Despite the decline in lubricant sales, Conoil’s gross profit increased by 56% to ₦26 billion, suggesting that higher fuel sales contributed significantly to its improved earnings.
The results underline the importance of petroleum product distribution to the company’s business, which supplies fuel through its service stations and to commercial customers.
Higher borrowing costs hit third-quarter profit
Although Conoil recorded substantial growth over the nine-month period, its third-quarter earnings weakened under the pressure of rising finance costs.
Revenue for the three months ended September 30 increased by 56% to ₦100.2 billion. However, profit after tax fell by 75% to ₦152.8 million from ₦608.4 million in the corresponding period of 2025.
Profit before tax also declined to ₦206.5 million from ₦775 million.
The decline came despite an increase in quarterly gross profit to ₦7.31 billion from ₦6.05 billion, as finance costs nearly doubled to ₦4.7 billion from ₦2.47 billion.
For the nine-month period, total finance costs reached ₦12.99 billion.
The company relies heavily on bank overdrafts to finance its operations, with the facilities carrying interest rates of approximately 32% annually, according to the report.
Its overdraft balance increased to ₦64.8 billion at the end of September from ₦54.9 billion at the end of December 2025. Conoil also expanded its total overdraft facility to ₦73 billion from ₦55 billion.
The company attributed the higher borrowing to increased investment in inventory and growth in credit sales.
Meanwhile, cash and bank balances fell to ₦9.09 billion from ₦12.91 billion, highlighting the pressure on its available liquidity.
Assets and shareholders’ equity increase
Conoil’s total assets rose to ₦149.1 billion, while shareholders’ equity increased to ₦44.5 billion from ₦39.2 billion.
Despite the improvement in its nine-month earnings, the company did not declare a dividend in 2026. This contrasts with 2025, when it paid shareholders ₦2.43 billion in dividends.
The absence of a dividend means investors will be watching how the company balances financing requirements, working capital needs and shareholder returns as borrowing costs remain elevated.
Adenuga retains controlling stake
Adenuga controls Conoil through Conpetro Ltd., which holds 516.3 million shares, representing 74.4% of the company.
Conoil shares traded at ₦210 on Tuesday, valuing the company at approximately ₦145.7 billion. At that price, Conpetro’s stake was worth about ₦108.4 billion.
Adenuga took control of the business in 2000, when it was known as National Oil and Chemical Marketing Company and had previously operated as Shell’s marketing arm in Nigeria. It was subsequently renamed Conoil.
The company is separate from Conoil Producing Ltd., Adenuga’s oil exploration business, which holds a 10% interest in offshore oil block OPL 257 alongside TotalEnergies and South Atlantic Petroleum, owned by businessman Theophilus Danjuma.
Adenuga, who founded telecommunications operator Globacom, has an estimated net worth of $6.8 billion, according to Forbes, making him Nigeria’s third-richest person.
