Q1 2026: Conoil Plc posts 1,235% profit growth despite revenue dip

Conoil Plc has recorded a 1,235% profit growth despite a minor contraction in its top-line revenue according to its unaudited financial statement for the first quarter ended March 31, 2026.

According to the results, the company’s Profit After Tax (PAT) hit ₦3.90 billion, a steep ascent from the thin ₦292.1 million recorded in the first quarter of 2025.

Similarly, Profit Before Tax (PBT) climbed 1,029.7 percent to ₦4.20 billion, compared to ₦372 million in the prior year’s corresponding period.

This bottom-line recovery pushed the company’s Gross Profit up by 99.4 percent to ₦10.61 billion, while Earnings Per Share (EPS) jumped to 562 kobo per share from just 42 kobo a year earlier.

While the bottom line showed exponential expansion, Conoil’s overall turnover experienced a mild dip.

The company posted a total revenue of ₦71.45 billion for the quarter, marking a 9.8 percent decline from the ₦79.26 billion generated in Q1 2025.

However, this drop in revenue was completely offset by a massive 17.7 percent reduction in the cost of sales, which fell to ₦60.84 billion from ₦73.94 billion.

Conoil’s gross profit margin also expanded significantly to 14.9 percent, more than doubling the 6.7 percent gross margin recorded during the same period last year.

A closer look at the company’s operating expenses reveals a mixed bag of cost savings and rising systemic pressures.

Conoil successfully managed its logistics, slashing distribution expenses by 55.8 percent down to ₦527.3 million, compared to ₦1.19 billion previously.

Conversely, administrative overheads climbed by 21.6 percent to ₦1.78 billion. Macroeconomic pressures also manifested in the company’s financing lines, as high interest rates drove finance costs up sharply to ₦4.10 billion from ₦2.29 billion in Q1 2025.

Conoil’s working capital benefited from a deep reduction in inventory holdings, which unlocked ₦9.39 billion in capital. This cash release was largely absorbed by a ₦8.92 billion expansion in trade and other receivables, indicating that the firm extended substantial credit to its customers during the quarter.

With interest payments taking up ₦4.10 billion and no major capital expenditure outlays recorded for the period, the company concluded the first quarter with a modest but positive net cash inflow of ₦326.1 million.

Following the release of the financials, Conoil’s stock performance on the Nigerian Exchange (NGX) reflected sustained investor appetite.

The firm’s share price closed at ₦194.00, representing a 3.63 percent gain from its year-opening price of ₦187.20 on January 2. The company’s total market value currently rests at ₦135 billion.