Conoil Plc, a leading downstream oil marketer in Nigeria, recorded a significant decline in profitability for the 2025 financial year, as higher financing costs and lower revenue squeezed earnings, despite a strong recovery in the final quarter.

The company’s net profit fell sharply by 77.1% to N2.01 billion for the year ended 31 December 2025, down from N8.77 billion in 2024, according to its audited financial statements submitted to the Nigerian Exchange.

Profit before tax also dropped by 77% to N2.53 billion, while income tax expense fell to N518.17 million, reflecting weaker overall earnings.
Revenue for the year declined 6.6% to N301.72 billion, from N323.13 billion in 2024, driven by challenges in the downstream petroleum sector.

Although cost of sales eased slightly to N278.81 billion, the reduction could not offset higher operating and finance expenses. Gross profit fell 13.1% to N22.91 billion.

A major factor behind the slump was a surge in finance costs, which jumped 162.5% to N10.38 billion, largely due to increased borrowings that more than doubled to N54.24 billion. Administrative expenses rose by 32.8% to N6.11 billion, while distribution costs dropped 43.5% to N3.90 billion.

Conoil’s fourth-quarter performance showed signs of recovery, with a profit after tax of N544.67 million, compared with a loss of N732.88 million in the same period of 2024. Revenue for the quarter grew to N97.89 billion, up from N74 billion, signaling improved sales momentum toward year-end.

Earnings per share fell sharply to 290 kobo, from 1,264 kobo in 2024, and the company did not declare a dividend for the year, compared with 350 kobo per share paid in the previous year.

On the balance sheet, total assets increased 21% to N139.01 billion, supported by a rise in property, plant, and equipment to N9.96 billion. Trade receivables climbed 27.5% to N91.66 billion, while inventories dropped to N21.66 billion. Cash balances improved to N13 billion, though the company’s net cash position remained negative due to higher overdrafts.

Total liabilities rose 32.4% to N99.94 billion, reflecting increased leverage, while shareholders’ funds edged down slightly to N39.07 billion, with net assets per share decreasing to N5.63.

Despite the challenging year, Conoil’s year-end performance hints at potential recovery in the downstream sector, though the impact of high finance costs and market pressures remains a concern.