CON OIL PLC REAPS MORE FROM LESS.

There is no con in it, Con Oil PLC seems destined to reap more profit from less income this financial year.

According to the half year results to June released recently, virtually all Con Oil's  income streams  were under pressure but like the tough one that gets going when things are tough, profit before tax was  up, not down.

Total income dropped by 9.17% to N41481.3m as core revenue decreased by 8.16% to N39514.4m; other operating income went down by 25.5% to N1966.9m and as other gains dried up.

The road to higher profit was thus paved by good control over costs resulting in 10.4% decrease in cost of sale to N34271.3m; 27% drop in distribution expenses to N1085.4m and 46.2% decline in finance cost to N1027.1m.

In the end, of all the cost units, only administration expenses increased rather marginally by 0.95% to N3530.6m.

The reward was the 97.2% increase in profit before tax to N1042.2m leading to a much improved 2.51% profit margin compared to 1.16% by June 2015.

To boot the decrease in finance cost was no fluke because Con Oil's borrowing dropped by 42.1% to N10558.7m as working capital closed at N14800.2m from N13210m and cash balance ended 14.1% up at N34091.9m.

CON OIL PLC: Nm  Half year
                           2016.           2015
Total income 41481.3.      45668.3
Core revenue 39514.4.      43027.2
Cost of sale.  34271.3.      38246.0
Other op. Inc. 1966.9.       2639.8
Other gains.       -                    1.25
Distribution     1085.4.      1487.4
Administration 3530.6.     3497.5
Finance cost.   1027.1.     1908.8
Profit b4 tax.    1042.2.        528.5
Profit margin  %   2.51.        1.16
Working capital 14800.2. 13210.0
Borrowing.         10558.7.  18235.9
Cash.                  34091.9    29890.6

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