Conoil Sustains Profitability Amid Nigeria's Downstream Market Transition

Conoil has navigated Nigeria's complex downstream petroleum sector to achieve a profitable performance in the 2025 financial year, a period marked by significant market transformation and operational pressures. The company reported revenue of N301.72 billion, a slight decrease from N323.13 billion in 2024, but demonstrated its ability to maintain substantial market activity amidst evolving industry conditions.

The transition to market-based fuel pricing, shifting supply chains, and growing domestic refining capacity created a challenging environment. Rising borrowing costs, inflation, and fluctuating product prices compressed industry margins. Despite these headwinds, Conoil declared a profit before tax of N2.68 billion for the year ended December 31, 2025. The company's management has proposed a dividend of 200 Kobo per share, signaling confidence in its business while balancing capital preservation and future growth.

A key factor in Conoil's performance was its stringent cost management. The cost of sales decreased to N279.04 billion from N296.77 billion in the previous year, and distribution and marketing expenses were significantly reduced to N4.05 billion from N6.89 billion in 2024. These efficiencies helped generate a gross profit of N22.68 billion, partially offsetting the impact of the difficult operating landscape.

Furthermore, Conoil continued its strategic expansion and investment in operational capacity. Total assets grew by 21.2% to N139.37 billion in 2025 from N114.95 billion in 2024. Investments in property, plant, and equipment also saw a substantial rise to N10.81 billion from N3.97 billion in the prior year, indicating a commitment to enhancing infrastructure for future growth. The company's established nationwide distribution network and presence across retail, commercial, and industrial segments underscore its resilience.