Conoil Plc slashed its final dividend by nearly half for the 2025 fiscal year after its net profit fell by more than 75 percent, according to audited results the company filed with the Nigerian Exchange Limited.
The downstream oil marketing giant proposed a dividend of N2 per share, down sharply from N3.50 in 2024. The payout drop of 42.9 percent for shareholders accompanies the company’s profit after tax plunge of 75.4 percent to N2.159 billion, down from N8.773 billion in the prior year. The payout reduction aligns with the broader financial performance of the company during a difficult year for the Nigerian energy sector.
Revenue slipped 6.6 percent to N301.72 billion from N323.13 billion in the previous fiscal period. Profit before tax fell to N2.68 billion, a steep decline of 75.7 percent from N11 billion in 2024.
Related: Iran sets funeral for Khamenei
Its earnings per share collapsed to 314 kobo from 1,264 kobo, a 75.2 percent reduction in per-share profitability.
Conoil’s board cited intense macroeconomic headwinds as the primary cause. They stated that these pressures severely compressed margins across the highly volatile energy market. Margins have been under constant pressure from both global oil price fluctuations and local regulatory changes.
Its share price has remained flat at N194.
The Nigerian economy has grappled with severe dollar shortages and multiple currency adjustments over the past year. These factors have directly impacted the cost of importing refined petroleum products for downstream companies like Conoil. Its ability to maintain margins has been severely tested as operational expenses climbed sharply.
Related: Gunmen abduct retired defence spokesman, wife
Majority owner takes the biggest hit
Billionaire businessman Mike Adenuga Jr., one of Nigeria’s most prominent business figures, controls 74.4 percent of Conoil through his wholly owned vehicle Conpetro Limited. He serves as chairman of the company. Conpetro holds 516.3 million shares, while other shareholders collectively hold 177.7 million shares. His influence over the company’s strategic direction is absolute, given his majority ownership.
No other shareholder held more than 5 percent of the company’s issued shares as of December 31, 2025, according to the register of members.
Defensive positioning on cash
Management’s decision to cut the dividend signals a defensive approach. It is pulling back on cash distributions compared to 2024. The company’s finance costs have climbed in tandem with benchmark interest rates set by the Central Bank of Nigeria, eroding net profit margins.
The total proposed dividend for 2025 stands at N1.39 billion, down from N2.43 billion in 2024. Shareholders’ funds slipped slightly by 0.7 percent to N39.22 billion from N39.49 billion.
Related: Getting a HELOC after a Mortgage Refinansiering
For income-focused investors, the double-digit cut serves as a reminder of how high interest rates filter down to shareholder returns. The compression in per-share earnings resets valuation expectations for the stock.
Conoil faced volatile supply-chain costs throughout the year. A challenging operating environment in Nigeria, with currency pressures and inflation, has squeezed downstream players. The company operated through a period of high inflation and currency volatility.
With the dividend cut confirmed and earnings under pressure, investor attention will turn to the company’s strategy for the coming fiscal year. The flat share price suggests the market had already priced in much of the negative news. The management’s future guidance will be critical for shaping market expectations.