CON OIL's SUBSIDY JUICE

Petroleum products marketing veteran, Con Oil PLC just released its 2015 audited results this week and it hints at subsidy juice that helped save the year in spite of 35.4% decrease in core income to N82919.2m.

The juice was in the form of interest on petrol subsidy that was not paid as at when due. For Con oil, a total of N2544.9m was  earned as interest this way in 2015 compared to zero in 2014. This hiked other income to N2533.3m from 2014's N761.2m.

It came in very much handy because total profit for the year was N3448.4m. Without the juice, Con oil would have probably ended with about N903.5m as profit before tax compared to N1532.2m in 2014 when no such interest income flowed in.

There was also another juice not directly related to core business that also helped greatly and that was almost fourfold increase in exchange gain from N693.7m in 2014 to N2533.3m to beef up Con oil' other operating income considerably.

So, the more than doubled profit for the year was driven by these two juices aided by  cost of sale that at N71381.5m decreased at a faster rate than the one recorded in core income.

If not, administration cost put up best performance by decreasing by 15.6% to N6885.7m; followed by 1.11% drop in distribution cost to N2697.8m while 62.8% growth in finance charges to N3757.5m offered no mercy.

So, buoyed by the two juices, Con oil ended 2015 with 3.91% profit margin compared to 1.19% in 2014. This also helped the company to depend less on overdraft by year end and improved working capital to N13210m.

CON OIL PLC: Nbn Full year.
                       2015.          2014
Total income 88.17.        129.29
Core income  82.92.        128.35
Other op inc.   2.72.             0.73
Other gains     2.53.             0.76
Distribution     2.70.             2.73
Administration 6.89.           8.16
Finance cost    3.76.            2.31
Profit b4 tax     3.45.            1.53
Margin %          3.91.            1.19
Working cap.  13.21.          11.40

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