Prime Business Africa
Conoil Plc, an oil and gas company, suffered a significant decline in its profit following a decline in revenue and loan burden.
The oil and gas company earned N301.72 billion in revenue from its services in 2025, a 6.6 percent decline, according to Prime Business Africa’s (PBA) analysis, when compared to the N323.12 billion generated in 2024.
During the period under review, Conoil’s production cost decreased to N279.04 billion, compared to the N296.77 billion gulped in 2024, indicating the cost of sales dropped by 5.97 percent.
Join our WhatsApp ChannelFollowing the decline in topline outpacing that of cost of production, gross profit dropped to N22.67 billion last year, which is a 13.95 percent decline when compared to the N26.35 billion posted in 2024.
However, other operating income increased by 289.15 percent to N140 million between January and December 2025, exceeding the N35M.97 million reported in the year before.
However, the impact of the surge on earnings was softened by other losses of N622,000 last year, as the company failed to replicate the other gains of N60.61 million recorded in 2024.
The company managed to reduce the impact of distribution expenses on its bottom line, as the former dropped to N4.04 billion in 2025, below the N6.89 billion sustained in the year before.
Although, while distribution expenses declined by 41.29 percent, administrative expenses rose by 15.54 percent to N5.31 billion during the period under review, compared to the N4.6 billion posted in 2024.
Also, finance cost, consisting of interest on bank overdrafts, which is a short-term loan, increased by 172.57 percent to N10.77 billion during the period under review, from the N3.95 billion incurred between the first quarter and fourth quarter of 2024.
Following the poor turnover and surge in interest on bank overdrafts, Conoil’s profit before tax (PBA) fell to N2.67 billion last year, below the N11 billion earned in 2024, representing a 75.7 percent decrease.
Due to the decline in pretax profit, the company’s tax expense dropped by 77.6 percent to N499.17 million in 2025, compared to the N2.23 billion paid to the tax agency the year before.
The drop in tax expense enabled Conoil to close the period under review with N2.17 billion profit after tax (PAT), which is 75.2 percent lower than the N8.77 billion generated in PAT in 2024.
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Prime Business Africa is a business, economy and policy news platform founded in 2021 by veteran journalist and media scholar, Dr Marcel Mbamalu, after he left The Guardian as Editor.
Dr Mbamalu, who serves as Founder and Publisher, set up Prime Business Africa to deliver sharp, data-driven reporting on Nigeria’s markets, trade, investment, and governance trends for decision-makers, entrepreneurs, and policy leaders.
He also writes The Bottom Line, a backpage column for Punch Newspaper every Thursday.
Under his leadership, Prime Business Africa combines deep newsroom experience with a focus on accountability journalism, aiming to bridge information gaps between Africa’s private sector and the global economy.
