Conoil Plc has recorded the highest dividend cover in relation to turnover in the Petroleum Marketing sub sector, posting a turnover of N90.52 billion and a dividend of 275 kobo for the financial year ended December 31, 2006. The Managing Director/CEO, Conoil Plc, Mr. Sanjay Mathur revealed this on Tuesday at a press briefing held at the Lagos Sheraton Hotel.

According to him “Despite the operational difficulties experienced in the downstream petroleum industry last year, Conoil Plc posted modest result. The company’s turnover represents 20 per cent increase over the N75.54 billion which it declared in 2005. The financial report also showed that the major petroleum product marketing giant posted N2.81 billion profit during the year, representing nine per cent growth over the previous year’s N2.6 billion.  Profit Before Tax rose by 6.5 per cent to N4.1 1 billion from N3.86 billion in 2005".

He further said “A peer analysis indicated that Conoil’s turnover growth more than doubles the average industry performance recorded during the period. In a situation where its peers recorded slump in operating profit even on the back of huge turnover, the company’s ratio of gross profit to the turnover ranked highest in the industry with at 14.03 per cent efficiency level”

Reviewing, the performance against the background of the harsh business environment in 2006, Conoil boss said “Following the impressive results, Conoil is proposing 275 kobo dividend pay out of to its shareholders, as against 250 kobo paid in 2005. This is the highest dividend cover in relation to turnover paid in the industry in 2006. Dividend payment by the company had risen steadily from N68.8 million in 2000. ‘There is no doubt that Conoil is one of the most efficiently run organization both in Corporate Nigeria and the downstream sector in particular”.

The increase in the Profit After Tax achieved last year was in line with the history of growth in the company, where profit had been climbing from N741.4 million in 2002 to N2.03 billion in 2003, N2.2 billion in 2004 and N2.6 billion in 2005.Turnover has also been on the steady rise in the last four years, from N21.88 billion in 2002 to N34.5 billion in 2003, N60.03 billion in 2004 and N75.5 in 2005. The company has explored new ways to leveraging its expertise to provide world-class products and services, investing its financial and technical resources in the development of high-performance products and in the provision of service that match or even surpass international standards. The company has continued to consolidate its leadership position in aviation fuel business by expanding its frontiers in the international market and consistently growing patronage. The company has embarked on aggressive retail network expansion with the building of one-stop mega stations in major cities cross the country.

The management has expressed the determination to sustain company’s record of profitability and further enhance its impressive performance in the downstream sector, through implementation of strategic development projects aimed at boosting its market share in the core businesses.