Conoil’s Q1 performance in four metrics

Despite input costs claiming 94 percent of Conoil’s revenue in the first quarter of 2023, the oil marketer showed tenacity by reporting a 33.7 percent increase in revenue to N34.9 billion, the highest in two years.

As a result, its profit quadrupled by 440.1 percent to N3 billion in the first quarter of 2023 from N557 million in the corresponding quarter of 2022.

Below are four metrics that depict its financial performance in the first quarter of 2023.

Profit Margin

Conoil’s profit margin increased to 8.59 percent in the first quarter of 2023 from 2.1 percent in the corresponding quarter of 2022, making it the highest profit margin reported in seven years.

This means that after costs are deducted, Conoil is earning more money from each product sold or client served.

A further look into the financial statement of the oil company shows that its cost of sales increased by 24.5 percent in the first quarter of 2023 to N28.9 billion from N23.2 billion in the first quarter of 2022 on the back of rising prices in its purchases.

OPEX Margin

The firm’s operating expenses (OPEX) margin fell to 5.7 percent in the first quarter of 2023, lower than 6.9 percent in the same quarter of 2022.

The operating margin shows how efficient a company’s management is at keeping costs low while generating revenue or sales.

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Therefore, the decline in the OPEX ratio for Conoil indicates that the company is more efficient at cutting costs while generating revenue.

Further findings showed the firm’s operating expenses reported by the oil marketer company increased by 9 percent to N1.99 billion in the first quarter of 2023 from N1.82 billion in the corresponding quarter of 2022.

Earnings per share

Conoil’s earnings per share rose the highest in seven (7) years to 434 kobo per share in the first quarter of 2023 from 80 kobo per share in the same period of 2022.

Higher or increasing EPS indicates profitability, meaning the company may increase dividend payout over time.

EBITDA

Conoil’s earnings before interests, taxes, depreciation, and amortisations (EBITDA) increased by 223 percent to N4.27 billion in the first quarter of 2023 from N1.32 billion in the corresponding quarter of 2022, therefore bringing the EBITDA margin to 12.2 percent during the period.

This means that the firm’s operating expenses are lower in relation to total revenue.

The EBITDA margin grew on the back of declining operating expenses and a 28 percent increase in other incomes which amounted to N39.6 million in the first quarter of 2023 from N30.9 million in the corresponding quarter of 2022.