Conoil Plc has recommended a payment of N1.73 billion to shareholders as cash dividends for the immediate past year as the leading petroleum-marketing company grew profit to N4.4 billion in 2011.
The dividend recommendation was contained in the audited report and accounts of Conoil Plc for the year ended December 31, 2011 released by the Nigerian Stock Exchange (NSE).
The gross dividend recommendation implies increase in dividend per share from N2 for 2010 to N2.50 for the 2011.
The 25 per cent increase in cash payouts was reflective of the impressive performance of the company during the year as net earnings per share rose from N4.02 kobo in 2010 to N4.25 kobo in 2011. With these, Conoil has emerged as the best-return stock in the petroleum marketing sector with current dividend yield of about 12 per cent and earnings yield of about 20 per cent. These also placed the stock within the top-bracket of dividend paying stocks on the NSE.
The report showed that the company grew sales by 53 per cent from N102.88 billion in 2010 to N157.51 billion in 2011. It further consolidated its profitability with profit before tax rising from N4.02 billion to N4.4 billion. Profit after tax rose from N2.79 billion to N2.95 billion.
The report also showed a stronger balance sheet as retained earnings boosted shareholders’ funds to N16.82 billion in 2011 compared with N15.26 billion in 2010. Total assets rose by 49 per cent to N61.84 billion in 2011 as against N41.49 billion in 2010.
Market analysts said the impressive dividend and profit and loss accounts performance were in line with market’s expectations given Conoil’s consistent growth over the years.
Chairman, Conoil Plc, Mike Adenuga, said the results were indicative of the commitment of the board and management to growing shareholders’ value irrespective of the operating challenges.
