Shareholders of Conoil Plc last Friday approved the payment of N1.39 billion dividend proposed by the board of the major oil marketing company for the year ended December 31, 2019.
The dividend, which translates to 200 kobo on every 50 kobo ordinary share, was approved at the virtual 50th annual general meeting (AGM) of the company.
Conoil Plc recorded gross revenue of N139.8 billion and profit after tax of N1.97 billion, while a dividend of N1.39 billion was paid.
According to the company, the modest dividend payout was predicated on the need to consolidate its cash management effort vis-à-vis the liquidity squeeze in the economy and also to continue to ensure improvement in its overall performance in order to meet the expectations of the shareholders.
The shareholders were unanimous in their commendation for the board and management for the wonderful performance and for the consistency in the payment of dividend.
“We congratulate the board for the impressive financial results and especially being able to reward shareholders when we consider the tough times faced by all fuel marketing companies in the country in the last financial year,” Mrs. Adebisi Bakare of Pragmatic Shareholders Association of Nigeria (PSAN) said.
In his address to the shareholders, the Chairman, Conoil Plc, Mike Adenuga (Jr.), said the impressive financial results recorded by the company against the background of the tough challenges that marked the operating environment of the downstream oil sector, was in fulfillment of his promise the shareholders of better execution of value-added products and services especially in the areas of marketing and growing the bottom-line.
According to Adenuga, the company had set an ambitious growth strategy for the next five years, driven by innovation and market penetration.
“Thus far, significant investments have been made in strengthening the company’s retail network and important progress recorded on all fronts for the benefit of all stakeholders,” the chairman said.
“We are proud of the attainments of the management. It was a challenging year with impressive results,” he added.
Adenuga noted that there has been a consistent drop in interest expense since 2017, and further assured the shareholders that the company would consolidate on its achievements to deliver a strong and sustainable performance that enhance juicy returns on their investment, stating that the company has strategically positioned its business to take advantage of emerging opportunities in the downstream oil sector.