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Investors crave for a company with strong earnings and attractive valuation. This is because they expect to be paid bumper dividend, the reward for taking risk in the entity; after all they could have invested the money in other ventures.
Concoil Nigeria Plc, a major player in the downstream oil and gas industry just released its first quarter financial statement that showed improvement in key performance ratios.
The stellar performance means the company has bolstered the optimism of investors because it isn’t easy to thrive in a harsh and unpredictable macroeconomic environment.
Nigeria’s economy has been growing sluggishly since the country exited its first recession in 25 years in 2017 as GDP expanded by expanded by 2.01 percent in the three months through March from a year earlier. That compares with 2.4 percent expansion in the fourth quarter.
Inflation rate was 11.40 percent in May, a figure that is higher than the 6 percent and 9 percent central bank target range.
Unemployment rate is at an all time high of 23 percent, as the country dethroned India to become the poverty capital of Africa.
The country’s decrepit infrastructures such as the menacing Apapa gridlock and bad roads has continued to undermine the growth of downstream oil and gas firms that incur additional haulage cost.
Oil marketers are grappling with huge debt brought on by delay in the payment of subsidy arrears by the Federal Government. Consequently, a lot of firms are unable to settle outstanding salaries of workers and pay interest on money borrowed from banks.
Amid these monumentalor or huge challenges, Conoil continues to thrive as it recorded double digit growth in revenue and profit, while it maintains a solid working capital position.
Conoil reported a 13.85 percent increase in revenue to N35.63 billion in … Read More...