Conoil proposes N2/share dividend for shareholders

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Shareholders of Conoil Plc will get a dividend payment of N2 per share for the 2018 full year soon, based on the company’s board of directors’ recommendation.

Uba Group

The recommendation is, however, subject to shareholders’ vote, which the Conoil board will seek to get at the firm’s Annual General Meeting to be held later this year.

This, among other information are highlighted in Conoil’s financial statements for the year ended 31st December, 2018, which was posted on the website of the Nigerian Stock Exchange earlier.

The financial statements show that all the major performance indicators improved.

Revenue increased by 5.8 per cent to N122.21 billion from the N115.51 billion recorded in 2017. Similarly, Profit before Tax leapt from N2.31 billion to N2.57 billion, an increase of 11.4 per cent.

Profit for the year rose by 13.8 per cent from the N1.58 billion recorded in 2017 to N1.80 billion in 2018.

Retained Earnings climbed up from N13.72 billion in 2017 to N14.13 billion in 2018, signaling a rise of three per cent.

Why this Matters

Conoil has maintained a consistent dividend payment policy for good 17 years (2001 to 2017), implying that it is capable of delivering returns on investment as and when due.

Even though there has been variance in the value of dividend declared over the years, reaching its 17-year high in 2013 at N4 per share, Conoil has managed to pay a dividend and keep afloat despite the fairly long period of economic recession.

This has earned it a dividend yield of 9.24 per cent. For instance, Conoil recorded a steep plunge in Profit after Tax from N2.36 billion in 2013, when it paid N4 dividend per share, to N834.42 million in 2014, and N1 per share dividend. The Earnings per Share of Conoil currently stands at N2.58, while its Price to Earnings Ratio is
8.39.