Conoil Plc Reports Sharp Decline in Profits for 2025 Financial Year in Nigeria Amid Margin Pressures and Rising Operating Costs

Conoil Plc has reported a challenging 2025 financial year, with profits falling sharply even though revenue saw only a modest decline.

The figures reveal a company under pressure from narrowing margins and higher operating costs in the downstream petroleum sector.

Revenue Shows Minor Dip Amid Market Pressures

The company’s top line slipped by 6.6%, landing at ₦301.72 billion in 2025, down from ₦323.13 billion the year before.

This drop was driven by softer sales volumes and pricing pressures across its range of petroleum products.

While the decline in revenue was not dramatic, it set the stage for the pronounced squeeze on profits.

Profit Before Tax Collapses

The more alarming story comes from the profit side.

Conoil’s profit before tax plunged to ₦2.53 billion, a steep 77% decline compared with ₦11.00 billion in 2024.

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Analysts point to substantial margin compression and rising operating pressures as the key reasons behind this downturn.

Lower Tax Bills Offer Little Relief

Tax expenses fell significantly to ₦518.17 million from ₦2.23 billion in 2024, reflecting the drop in taxable profits.

However, the reduced tax burden was too small to offset the broader earnings decline, leaving the bottom line heavily weakened.

Net Profit Falls Sharply

Profit for the year tumbled to ₦2.01 billion from ₦8.77 billion, marking a 77.1% contraction.

Earnings per share also took a hit, dropping to 290 kobo compared with 1,264 kobo in 2024.

These results paint a clear picture of how sensitive downstream oil marketers are to margin pressures, even when revenue does not collapse dramatically.

No Dividend Declared Amid Conservative Payout

Reflecting its cautious stance, Conoil did not declare any dividend for 2025, compared with a 350 kobo payout the previous year.

The decision underscores the company’s conservative approach in the face of weaker profitability.

Shareholders’ Funds Hold Steady

On the balance sheet, shareholders’ funds saw only a slight decline to ₦39.07 billion from ₦39.49 billion, while retained earnings eased to ₦34.90 billion from ₦35.32 billion.

Net assets per share stood at 5,630 kobo, marginally below the 5,691 kobo recorded in 2024.

Lessons from 2025

The 2025 results highlight the vulnerability of downstream oil marketers like Conoil to operational and margin pressures.

Even with fairly resilient revenue, costs and pricing dynamics can severely impact profitability, prompting a more cautious financial approach moving forward.