Conoil Plc reported its weakest profit performance in five years after rising finance costs and increasing debt obligations eroded earnings despite maintaining over N300 billion in annual revenue.
The downstream oil marketer posted a profit after tax of N2.18 billion for the year ended December 31, 2025, representing a 75.2 percent decline from N8.77 billion recorded in 2024. Profit before tax fell by 75.7 percent to N2.68 billion from N11 billion a year earlier, while revenue declined by 6.6 percent to N301.72 billion from N323.13 billion.
The result marks a sharp reversal from the strong profitability recorded in recent years and reflects mounting pressure on marketers operating in an environment characterised by elevated borrowing costs and tighter liquidity conditions.
An analysis of the company’s income statement shows that while revenue softened modestly, the biggest blow came from financing expenses. Cost of sales fell to N279.04 billion from N296.77 billion, leading to a gross profit of N22.68 billion compared with N26.35 billion in the previous year. However, finance costs surged by 172.7 percent to N10.78 billion from N3.95 billion, significantly reducing earnings before tax.
