Conoil Plc recorded a steep drop in half-year earnings for the period ended June 30, 2025 as revenue and profit fell sharply from the same period in 2024.
According to the company’s unaudited financial statements filed with the Nigerian Exchange Limited, revenue for the first six months of the year dropped 20.4% to ₦143.65 billion from ₦180.57 billion in the corresponding period of 2024.
Performance Overview
Gross profit for the half year fell 35.2% to ₦11.36 billion, compared with ₦17.53 billion recorded in the prior year. The decline was largely driven by lower sales volume and rising costs.
Distribution expenses rose to ₦2.24 billion from ₦1.88 billion, while administrative costs remained flat at ₦3.21 billion against ₦3.20 billion in the same period of 2024. Finance costs more than doubled, increasing to ₦4.76 billion from ₦2.22 billion.
As a result, profit before tax plunged 88.8% to ₦1.15 billion, compared to ₦10.22 billion last year. After accounting for income tax of ₦246.6 million, profit after tax stood at ₦900.42 million, representing an 88.8% decline from ₦8.02 billion in 2024.
Quarterly Highlights
For the second quarter alone (April to June 2025), revenue dropped to ₦64.39 billion from ₦89.63 billion in Q2 2024, while profit after tax fell to ₦608.36 million, down from ₦3.68 billion in the same period last year.
Earnings Per Share
Basic and diluted earnings per share declined to 130 kobo, compared with 1,156 kobo in the first half of 2024.
Outlook
The steep fall in profitability underscores the pressures facing downstream oil and gas operators, including rising finance costs and distribution expenses. Market analysts expect Conoil to face a challenging second half unless sales volumes recover and finance costs moderate.