Conoil Plc has released its unaudited financial statements for Q2 2025, indicating further drop in profitability.
The firm reported a pre-tax profit of N775 million, marking an 83% year-on-year (YoY) decline from the N4.686 billion recorded in the same quarter of 2024.
This also represents the second consecutive quarterly decline in 2025, moderating half-year (H1) pre-tax profit to N1.147 billion, sharply down from N10.219 billion in H1 2024 an 89% slump.
A major reason for the performance was the sharp decline in revenue, especially from its core white products segment. Q2 2025 revenue dropped by 28% YoY to N64.39 billion, which was also 19% lower than Q1 2025.
Consequently, H1 2025 revenue dipped by over 20% to N143.65 billion, from N180.67 billion in the same period last year.
The revenue decline filtered into profitability metrics:
Gross profit declined by 27% to N6.046 billion, despite a 28% drop in the cost of sales to N58.34 billion.
Operating costs remained elevated, rising from N2.3 billion in Q2 2024 to N2.799 billion in Q2 2025. This pushed H1 2025 operating expenses to N5.454 billion, further compressing profit margins.
As a result, operating profit fell to N3.247 billion, down from N5.9 billion in Q2 2024.
Finance costs surged by 99% YoY to N2.472 billion, driven primarily by interest on bank overdrafts. For H1 2025, total finance costs stood at N4.76 billion, eroding earnings.
However, Conoil made progress in reducing its debt burden, as total debt declined to N21.5 billion from N28.7 billion as of December 2024 indicating efforts to deleverage amidst high interest rates.