Shareholders of Conoil Plc have approved the payment of N1.39 billion dividend proposed by the board of the oil marketing company.
This came on the back of appreciable performance recorded in the 2019 financial year, and thus, the shareholders will get 200 kobo on every 50 kobo ordinary share.
At the virtual 50th Annual General Meeting (AGM) of the company held by proxies at the weekend in Lagos, the shareholders were unanimous in their commendation for performance of the Board and Management and for the consistency in the payment of dividend
“We congratulate the board for the impressive financial results and especially being able to reward shareholders when we consider the tough times faced by all fuel marketing companies in the country in the last financial year,” Mrs. Adebisi Bakare said, National Coordintor, Pragmatic Shareholders Association, said.
Conoil stated that the modest dividend payout was predicated on the need to consolidate its cash management effort vis-à-vis the liquidity squeeze in the economy and also to continue to ensure improvement in its overall performance in order to meet the expectations of the shareholders.
According to the audited financial results for the 2019 financial year, Conoil Plc gross revenue grew by 14.4 per cent to N139.8 billion. profit before tax grew by 10.4 percent to N2.83 billion while profit after tax also grew by 9.8 percent to N1.97 billion.
The fuel marketer also grew its total assets by 4.4 per cent to N63.6 billion, while Interest Expense dropped by 26 per cent to N1.1 billion.
“There has been a consistent drop in interest expense since 2017 which we hope to sustain,” it informed the shareholders.
In his address to the shareholders, the Chairman, Conoil Plc, Dr. Mike Adenuga (Jr.), said the impressive financial results recorded by the company against the background of the tough challenges that marked the operating environment of the downstream oil sector, was in fulfillment of his promise the shareholders of better execution of value-added products and services especially in the areas of marketing and growing the bottom-line.
According to Adenuga, the company had set an ambitious growth strategy for the next five years, driven by innovation and market penetration.
“Thus far, significant investments have been made in strengthening the company’s retail network and important progress recorded on all fronts for the benefit of all stakeholders,” the chairman said.
“We are proud of the attainments of the management. It was a challenging year with impressive results,” he added.
Adenuga further assured Conoil shareholders that the company would consolidate on its achievements to deliver a strong and sustainable performance that enhance juicy returns on their investment, stating that the company has strategically positioned its business to take advantage of emerging opportunities in the downstream oil sector.