Conoil posts N424m profit in Q1 2021
Conoil Plc, chaired by Nigeria’s business mogul, Mike Adeuga has published it financial scorecards for the first quarter of the year 2021.
According to the unaudited report released at the Nigerian Exchange Limited, the energy company posted profit after tax of N423.93 million in the three-month period, 63 per cent higher than that of Q1 2020.
However, the company’s turnover tumbled by over N5 billion as the energy firm gained relief after paying up N4.3 billion damages in installments to a trading partner in a legal wrangle that has dragged out for 14 years.
“The company is in litigation with Nimex Petrochemical Nigeria Limited (Nimex), one of its former suppliers of products.
“In 2007, Nimex sued the company for US$3,316,702.71 and US$127,060.62 being demurrage and interest incurred for various supplies of petroleum products,” Conoil said in its earnings report seen by Business Metrics on Thursday.
“The current value of the judgment sum which is N4.3 billion has been fully provided for in these financial statements to mitigate any possible future loss.”
Profit after tax for Q1 2020 leapt to N423.931 million from N260.382 million on the back of payment of the final installment of the claim last year.
Conoil agreed to pay the judgement sum in the form of scheduled payment commencing around 2015, when it first disclosed details of the lawsuit in its earnings report
Ruling in favour of Nimex, the Federal High Court ordered Conoil to pay $13.757 million, comprising the claim and interest at 21 per cent pending the decision of the case.
It “also granted a stay of execution with a condition that the judgment sum be paid into the court.”
Conoil has approached the Court of Appeal in Abuja in hopes of overturning the lower court’s decision.
Earlier, the company had reported its full year 2020 report which put some of the key numbers in the red zone.
Conoil 2020 financial highlights
- Revenue for the year was N117.5 billion. (-15.9% YoY)
- Cost of sales was N107.7 billion. (-14.8% YoY)
- Administrative expenses totalled N5.18 billion. (-21.5% YoY)
- Profit for the year was N1.44 billion. (-27% YoY)
- Earnings per share of N2.08 Vs N2.84
- A dividend of N1.50 was proposed by the board.