Conoil Hits New 52-Week High after Financials Error Correction
Conoil Plc turned to money making machine for its shareholders due to a strong price uptick of 37% week on week recorded last week. This happened after the company announced correction to its errors laced financials initially submitted.
The share price of the oil company surged to N260 during the last trading session on the Nigerian Exchange on Friday, from N189.3 at the beginning of the week.
Investors appear to be betting on the oil company’s significant earnings per share surge. Its unaudited financial statement showed earnings per share increased by 39.5% year on year to N17.47 from N12.52 in the comparable period in 2023.
Its positive price movement nudged market value higher week on week. Trading data from the Nigerian Exchange showed that Conoil market value increased to N180.427 billion, spread over its 694 million shares outstanding.
The price hits a 52 week high at N260, a wide gap from its lowest price in the last 12 months in the local bourse. Investors who bought Conoil at its lowest price over the last 12 months has now gained 233%. Investors queue behind the oil stock following an amendment to its third quarter earnings release on the Nigerian Exchange.
In a statement, Conoil said shortly after the Company’s 2024 Q3 Financial Report was submitted, it was noticed that it contained a few errors engendered by systems issues emanating from power challenges, resulting in the duplication of some transactions, and thereby affecting the reported cost of sales and distribution expenses.
The errors have since been corrected, and the faulty report was withdrawn and replaced by the correct one, the official statement released read. Based on the corrections and adjustments the company said Cost of sales reduced by N200 million, from N60.74 billion to N60.54 billion while the gross profit increased by N200 million from N7.82 billion to N8.02 billion.
In its re-submitted financials, the company said profit before tax increased by N803 million from N4.22 billion to N5.02 billion. It added that its income tax expense increased by N15.5 million from N907.50 million to N923 million
9-month Unaudited Financials
Revenue increased by 80.7% year on year to settle at N249.130 billion, from N137.88 billion in the comparable period in 2023. Profit before tax of N15.242 billion in the period was 37.9% above N11.053 billion the company posted 12 months earlier.
Conoil grew profit after tax by 39.5% year on year to N12.122 billion at the end of 9M of financial year 2024 from N8.96 billion in the comparable period. Its retain earnings then increased by 39.2% year on year to N41.096 billion from N29.531 billion.
Shareholders fund expanded to N45.268 billion at the end of the period, up by 34.3% year on year from N33.702 billion in the equivalent period in 2023. #Conoil Hits New 52-Week High after Financials Error Correction
