Conoil Nigeria Plc, a leading downstream oil marketing company in Nigeria, Africa’s most populous nation and largest oil producer, reported a sharp 77.03% decline in profit before tax to N2.53 billion for the financial year ended December 31, 2025, down from N11.00 billion the previous year.
Okay News reports that the drop, detailed in the company’s unaudited financial statements, stemmed from weaker operating performance and a significant increase in borrowing costs, despite balance sheet expansion.
Revenue decreased 6.62% year-on-year to N301.72 billion, while cost of sales fell 6.05% to N278.81 billion. Gross profit dropped 13.06% to N22.91 billion.
Operating profit declined 13.73% to N12.90 billion, even as selling and distribution expenses were reduced.
Finance costs surged 162.46% to N10.38 billion from N3.95 billion, eroding much of the operating income.
Profit after tax fell 77.10% to N2.01 billion, with earnings per share dropping 77.06% to N2.90.
Total assets grew 20.93% to N139.01 billion, driven by increases in cash and cash equivalents (up 79.03% to N13.00 billion), property, plant and equipment (up 150.73% to N9.96 billion), and trade and other receivables (up 27.48% to N91.66 billion).
Total liabilities rose 32.44% to N99.94 billion, with borrowings jumping 89.17% to N54.24 billion. The debt-to-equity ratio increased to 138.8% from 72.6%.
Shareholders’ equity dipped 1.06% to N39.07 billion.
The results highlight pressures from higher leverage in a softer revenue environment, despite efforts to cut costs.
On the Nigerian Exchange, Conoil shares closed at N169.00 per share on February 5, 2026, down 9.72% year-to-date from N187.20. Over three months, 2.75 million shares traded in 6,123 deals, valued at N468 million.
Rising finance costs and leverage pose risks to future earnings and investor sentiment, even as the company expands its assets.
