Despite 77% drop in profit,  Conoil proposes N1.39bn dividend 

Amid 77 per cent drop in profit, the management of Conoil Plc has proposed a dividend of N2.00 per share for the 2025 financial year.

This amounts to a total payout of N1.39 billion, despite reporting a sharp decline in profitability as rising borrowings and finance costs weighed heavily on earnings.

The proposed dividend, subject to shareholder approval at the company’s Annual General Meeting, represents a 42.9’per cent decline from the N3.50 per share paid for the 2024 financial year, according to the company’s audited financial statement filed with the Nigerian Exchange  Limited (NGX) on June 12.

The audited financial statements for the period ended December 31, 2025 show that profit after tax fell by 77.1per cent to N2.01 billion, while earnings per share declined to N2.90 from N12.64 recorded in the previous year, suggesting weaker earnings performance during the year under review.

A review of the company’s financial performance shows that while Conoil maintained revenue above the N300 billion-mark, profitability came under significant pressure from rising financing costs and margin compression.

Compressing profits and earnings per share of N2.90 forced a lower N2.00 per share dividend payout, representing a total payout of N1.39 billion. The proposed dividend is 42.9per cent lower than the N3.50 per share distributed for the 2024 financial year.

The balance sheet reveals that Conoil expanded its asset base during the year but relied heavily on debt financing to support that growth. In 2025, the company declared a 20.93 per cent increase in total assets to N139.01 billion in 2025. 

The figures suggest liabilities grew considerably faster than assets, highlighting increasing leverage across the business.

Borrowings alone accounted for more than half of total liabilities, underlining the company’s growing dependence on debt financing.

The near doubling of debt levels contributed directly to the 162.46per cent increase in finance costs, which became the primary factor behind the steep decline in profitability.

While total assets expanded by more than N24 billion during the year, shareholders’ equity remained largely unchanged, suggesting that asset growth was funded predominantly through liabilities rather than internally generated earnings.

The balance sheet therefore points to mounting financing pressures and weaker profitability. Finance costs rose faster than any major income line, increasing by 162.46per cent during the year.

Conoil’s pretax profit plunged 77per cent to N2.53 billion in 2025 financial year driven by a spike in finance costs.

The company’s weak earnings performance has impacted its stock price movement on the NGX. The stock opened the year at N187.20 but slipped N169.00 per share on January 8, 2026.