Investors may hit gold in Conoil stocks.
Amid the bearish situation in the Nigerian stock market, investors who decided to raise their stakes in the shares of Conoil Plc, stand a good chance of hitting gold in the full year circle with returns on their investment likely to be above 100 percent.A sterling performance in the company’s unaudited reports for the first quarter (Jan. - March) has already re-assured shareholders and the investing public of the bright prospects for huge returns on investments at the end of 2008 financial year, as well as what the future holds for the company.The company recorded a turnover of N32.9 billion, representing 104 percent increase over the N16.138 billion earned in the same period in 2007. Profit Before Tax (PBT) rose by 161 percent to N1.598 billion as against N613 million in 2007, while ProfitAfter Tax (PAT) stood at N1.087 billion, about 153 percent above the N429 million profit earned in 2007.
In a media briefing leading up to the company’s annual general meeting, the Managing Director, Mr. Sanjay Manthur, said the goal of the restructuring plan, which the company had since embarked upon, was to deliver quality service to customers and maximize value to all stake-holders.Mr. Manthur, who disclosed plans to raise funds through the capital market next year, said more one-stop mega stations were being built in various parts of the country and stressed that state of the art retail network would be tied up with leading fast food chains. According to him, the company projected about $159 million (N22.26 billion) for importation of petroleum product to boost rising demands for the products in the country.The investment was a total of 90,000 metric tonnes of kerosene at the cost of $63 million and another $96 million on importation of a total of 150,000 metric tones of Automotive Gas Oil (AGO) better known as diesel, to meet rising demand for the product by mostly industrial consumers. He said the company is increasing its lubricant production by 100 per cent to 24 million litres in 2008, as it positions to take advantage of a rise in demand for engine oil even as it said that it was increasing its lubricant storage capacity to 60,000 metric tonnes.
With the vision of being the market leader beyond Nigeria, the company have also embarked on expansion of its petroleum products storage depots spread across the country, with an investment outlay of about N3.5 billion spread over a five-year period.Facilities being upgraded are the company’s storage tanks for Premium Motor Spirit, Automotive Gas Oil and Dual Purpose Kerosene at the Apapa depot, AGO and Bitumen storage tank in Port Harcourt, the AGO depot in Warri, as well as company’s Aviation fuel storage capacity at its service centers in Ikeja, Abuja, Kano, Kaduna, Jos, Maiduguri and Port Harcourt.As a leader in the aviation fuel marketing sector, the company has continued to attract more patronage from airlines. As it recently signed up by Emirates Airline to supply 20 per cent of its aviation fuel need
