CAPITAL OIL PLC: MORE THAN ELBOW GRIP.

No doubt the grip of the tough times on Capital Oil PLC is more than an elbow grip that can be disposed of just by straightening the elbow. That is, according to the figures for the nine months to September.
From the result, Capital Oil is feeling the pinch from all angles except more controllable administration costs ( down 7.7% to N355m from N384.6m).
In the first place, main stream turnover eased by 0.12% to N3436.2m from N3440.5m; zero income was reported from financing activities compared to N11.7m previously and income from other sources collapsed by 45.8% to N13.7m from N25.3m.
Then cost pressure compounded the shoe pinch. Cost of sales rose by 23.8% to N2658.7m from N2123.1m in spite of the income drop; sales and marketing expenses also jumped by 84.2% to close at N256.4m.
Thus, Capital Oil ended the nine months with N179.8m profit before tax, down 78% on the N818.8m recorded at the same time in 2014.
No wonder, from a gain of rather comfortable N24 on each N100 sale by September 2014, Capital Oil made do with only N5.21 this time around.
SO:
* It is hard to see Capital Oil's fortunes changing drastically during the last quarter of the financial year.
* Finally, from the way the grip got tighter in the nine months, more lost grounds may be more likely, all things being equal.

Comments

  1. Anonymous9 November 2015 at 09:35

    Hello, Please do by any chance in any way advice people on the right Company to invest their money. Like if Capital Oil Plc is not a good opportunity; can you please tell us which company is.

    ReplyDelete

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