Shareholders of Conoil plc yesterday lauded the company’s declaration of N4 dividend, translating to N2.78bn cash payment for its 2013 financial year, despite the harsh operating environment witnessed by the downstream petroleum sector, during the period.
The shareholders expressed their delight at the company’s 44th Annual General Meeting held Tuesday, September 30 in Uyo, Akwa Ibom State. The shareholders unanimously commended the board and management for faithfully implementing the strategies and programmes that enabled the company record impressive performance across board.
At the AGM, the shareholders received the report of the directors and the statement of financial position of the company as at December 31, 2013 together with the statement of profit or loss and other comprehensive income for the year ended on that day and the report of the auditors and the audit committee.
Sunny Nwosu, national coordinator, Independent Shareholders Association of Nigeria (ISAN), said at the annual general meeting, “We are impressed with the record performance and the balance sheet. We are indeed happy that Conoil is paying quality dividend amid the tough challenges facing downstream operators in this country. It shows that the board and management of the company hold every shareholder in high esteem.”
Timothy Adesiyan, president of Nigeria Shareholders Solidarity Association (NSSA), said. “I am particularly pleased that the board kept to the promise made at the last meeting to boost bottom-line and ensure adequate returns on investment for shareholders. The revenue and profit growth compared favourably with industry performance. We can only wish that they continue to strengthen and consolidate on the company’s leadership position in the industry.”
Also speaking at the meeting, Sola Abodunrin, chairman, Ibadan Zone Shareholders’ Association, also commended the company for ensuring that the shareholders earned returns on their investments.
“The 400 kobo dividend represents over 300 percent increase over we were paid last year. It goes to show Conoil’s commitment to its shareholders,” Abodunrin said.
In his address, Mike Adenuga, the company’s chairman, noted that, “the company scored many firsts in the areas of product development, service delivery and set new standards with groundbreaking initiatives.”
The results revealed that the company maintained its leadership position in the industry, reaping bountifully from its huge investments in its business portfolios.
Conoil revenue increased from N149.99bn to N159.54bn. Gross Profit shot up to N17.04bn from N16.1bn.
The company also posted 289 percent increase in Profit Before Tax from N1.15bn in 2012 to N4.58bn, while it recorded Profit After Tax of N3.07bn, which amounts to 330 percent increase over what was posted in 2012. While assuring the shareholders of better years ahead, Adenuga promised that the company would consistently pursue initiatives directed at achieving better execution in the areas of marketing and customer service.
“Greater attention would be devoted to cutting operational costs in the different segments of the business, while maintaining and improving on the quality of our products and services,” Adenuga added.
Reviewing the year, Adenuga recalled that, “Conoil consolidated its competitiveness in the different segments of its core business.
We also pursued and sustained strategic expansion of our retail network across the length and breadth of the country with a view to ensuring that a lot more people, especially in the remotest parts of the country, have access to our superior products and services.”
While assuring the shareholders that Conoil is equipped with all the essential materials, intellectual and human resources, to surmount the challenges ahead in the downstream petroleum sector, Adenuga stated that the company has been positioned to take full advantage of opportunities from the Federal government’s economic reforms, by leveraging on the solid base built over the years.
