Modupe Gbadeyanka
By Modupe Gbadeyanka
One of the big players in the oil and gas industry in Nigeria, ConOil Plc, has released its financial statements for the year ended December 31, 2016, and in the results, the company declared a profit of N2.8 billion in the fiscal year.
ConOil, which released the financial statements to the Nigerian Stock Exchange (NSE), disclosed that during the year, its revenue grew by 2.5 percent from N82.9 billion in 2015 to N85 billion in 2016.
In addition, its profit before tax (PBT) rose form N3.5 billion in 2015 to N4.3 billion a year later, representing 24.1 growth within 12 months, while the profit after tax (PAT) appreciated from N2.3 billion it was at December 31, 2015, to N2.8 billion one year later, showing a 23 percent rise during the period under review.
ConOil, which has Mr Mike Adenuga as its Chairman, said in the report that there are a number of legal suits outstanding against the firm estimated at N4.5 billion, excluding a N13.5 billion suit against it by one of its former suppliers.
According to the company, one of its former suppliers of Automotive Gas Oil (AGO) went to court in 2008 and that the case has been through the High Court and Court of Appeal, and is currently at the Supreme Court.
“The amount being claimed by the supplier as breach of contract is $43.3 (N13.5 billion).
“Whereas the judgments of the lower courts have been in favour of the supplier, the Directors, on the advice of the external solicitors, are of the opinion that the judgment of the lower court will be upturned by the Supreme Court,” ConOil stated in the financial statements analysed by Business Post.
However, it noted that on the advice of the Solicitors, the Board of Directors is also of the opinion that no material losses are expected to arise therefrom.
“However, a provision of N2.3billion has been made in these financial statements to mitigate any possible future loss,” it said.
ConOil also said, “There are no other post balance sheet events that could have had any material effect on the state of affairs of the company at December 31, 2016 and on the total comprehensive income for the year ended on that date that have not been taken into account in these financial statements.”
Meanwhile, the board of directors of ConOil has recommended the payment of a dividend of N3.10k per share on the results for the year 2016.
