Conoil Plc has posted a remarkable turnaround in its first-quarter results for 2026. The petroleum marketer swung to a profit after tax of N3.90 billion, up sharply from N292.1 million in the same quarter last year.
That represents a 1,235.3 percent surge in bottom-line earnings. Yet the company achieved this despite revenue falling to N71.45 billion from N79.26 billion.
The key to the performance was better cost management. Cost of sales dropped 17.7 percent to N60.84 billion, outpacing the revenue decline significantly.
Gross profit therefore nearly doubled. It climbed to N10.61 billion from N5.32 billion in Q1 2025.
Gross margins expanded to 14.9 percent from just 6.7 percent. Conoil's inventory management improved substantially during the period, the results show.
Distribution expenses fell dramatically by 55.8 percent to N527.3 million. This helped offset increases in other spending areas.
Administrative costs, however, rose 21.6 percent to N1.78 billion. Finance costs presented a bigger challenge for the company.
Interest expenses nearly doubled to N4.10 billion from N2.29 billion. Rising interest rates in Nigeria have squeezed many firms' profitability.
Despite those headwinds, profit before tax reached N4.20 billion. That's a 1,029.7 percent jump from N372 million previously.
Tax expenses came to N303.4 million. Earnings per share climbed to 562 kobo from just 42 kobo a year earlier.
Investors have noticed the improvement. Conoil's share price opened 2026 at N187.2 on January 2.
It's now trading at N194 per share. That's a gain of 3.63 percent so far this year.
On the NGX, Conoil ranks 92nd in year-to-date performance. The recovery suggests growing confidence in the stock among traders.
On the balance sheet, the company strengthened its capital base. Shareholders' funds grew 9.9 percent to N43.14 billion from N39.24 billion at year-end 2025.
Retained earnings drove this increase entirely. They rose to N38.97 billion from N35.07 billion, reflecting strong Q1 performance.
Total assets stood at N137.91 billion, slightly down from N139.37 billion. But the asset mix shifted notably.
Inventory levels fell 41.9 percent to N13.00 billion from N22.39 billion. This shows the company turned stock faster than before.
Trade receivables increased 9.9 percent to N99.52 billion. More customers are buying on credit terms rather than paying upfront.
Cash balances edged down to N12.30 billion from N12.91 billion. Despite that, liquidity remains solid for operations.
Industry observers say Conoil's quarter shows how downstream firms can profit despite lower volumes. Better pricing power and lean operations made the difference here.
