Conoil Profit Rises Six Folds, Margin Expands
Conoil Plc posted an impressive financial performance for the first half (H1) ended June 30, 2026, with strong revenue growth, significant margin expansion, and a sharp increase in profitability despite higher financing costs and increased borrowings. The company’s results underscore improved operational efficiency and disciplined cost management, positioning it for sustained growth.
Revenue for the period rose 25.2% to N179.9 billion, compared with N143.6 billion in the corresponding period of 2025. Cost of sales increased in line with business expansion, rising to N161.2 billion from N132.3 billion a year earlier. Nevertheless, stronger pricing and operating efficiency enabled the company to retain a larger share of revenue.
As a result, gross profit climbed 64.8% to N18.7 billion, up from N11.4 billion in the prior-year period, reflecting a substantial improvement in gross margin and demonstrating Conoil’s ability to convert higher sales into stronger earnings.
Operating performance was further strengthened by disciplined cost control. Distribution expenses declined sharply by 55.1% to N1.05 billion, compared with N2.3 billion in H1 2025, providing significant support to profitability. Administrative expenses increased modestly by 15.9% to N3.6 billion from N3.1 billion, broadly reflecting the larger scale of operations.
Although finance costs rose 74.1% to N8.29 billion, driven by increased short-term borrowings to support working capital requirements, the additional financing burden did little to slow earnings momentum. Current borrowings expanded 31.2%, rising to N72.0 billion from N54.9 billion, largely to finance higher receivables and inventory levels associated with increased business activities.
Despite the higher finance costs, profit before tax increased more than fivefold to N5.77 billion, while profit after tax surged 472.5% to N5.15 billion, compared with N900.4 million in the corresponding period of 2025. The remarkable growth in earnings, significantly outpacing revenue expansion, highlights the substantial improvement in operating margins and overall profitability.
Reflecting the stronger earnings performance, earnings per share (EPS) advanced sharply to 743 kobo, from 130 kobo recorded in the first half of 2025, delivering significantly higher value to shareholders.
The balance sheet also reflected continued business expansion. Trade and other receivables increased 15.1% to N104.3 billion from N90.6 billion, while inventories grew 6.1% to N23.8 billion, consistent with higher trading volumes. Trade and other payables rose to N40.9 billion from N35.7 billion, supporting the increased level of operations.
Liquidity remained healthy, with cash and cash equivalents rising 14.0% to N14.7 billion, compared with N12.9 billion previously. Total assets expanded to N156.4 billion from N139.4 billion, reflecting the company’s growing operational scale and investment in working capital.
Shareholders’ value also strengthened during the period. Total equity increased 13.1% to N44.4 billion, from N40.4 billion, supported by a 14.7% rise in retained earnings to N40.2 billion, compared with N36.2 billion at the end of the corresponding period.
Conoil’s H1 2026 performance reflects a business benefiting from robust revenue growth, expanding margins, disciplined operating cost management, and significantly improved profitability. While higher borrowings and finance costs warrant continued monitoring, the company’s ability to deliver exceptional earnings growth alongside a stronger balance sheet reinforces its operational resilience and positions it favourably for the remainder of the financial year. #Conoil Profit Rises Six Folds, Margin Expands# Conoil Rallies as Investors Reprice Downstream Plays
