Leading petroleum products marketing firm, Conoil Plc last week reported an increase of 82 per cent in profit after tax for the third quarter-ended September 30, 2011, signalling a bounteous harvest for the year ending December 31, 2011.
The company recorded a profit before tax of N4.6 billion in 2011, up by 77 per cent from N2.6 billion in the corresponding period of 2010.
Profit after tax rose by 82 per cent from N1.7 billion to N3.1 billion. The company ended the period with a turnover of turnover of N120.3 billion as against N64.8 billion in the corresponding period of 2010.
Some industry analysts are of the opinion that the company might surpass the N6.5 billion full-year profit forecast, given the fact that the last quarter is usually the busiest in terms of business activities in the downstream sector of the petroleum industry.
Research analysts at Apel Asset and Trust Limited, had recently said Conoil's stock price was grossly under-valued given its financial performance and future prospects.
The analysts had therefore, advised discerning investors to take advantage of the company's prevailing low share price and invest in its stocks for possible bountiful harvest in the nearest future.
Shares in Conoil closed at N35 per share last Friday.
The Chairman of Conoil Plc, Mike Adenuga, while previewing the company's performance for 2011 at its last annual general meeting, had predicted that the company would record triple growth rate and deliver superior shareholder value.
"We have set for ourselves, some very challenging targets; but given the commitment of our people and the burning desire to go the extra mile and be the best, we feel confident that 2011 will be a greater success," he had said.
Conoil had explained that the foundation for the impressive performance was hinged on the huge investment it committed to the expansion of its businesses, the general overhaul of its facilities and equipment, the optimisation of its resources and total elimination of waste in its operations.
One major component of its expansion initiatives was the massive investment in its depot in Port Harcourt to ease fuel scarcity in the Southern and Northern parts of the country.
Conoil has also launched itself as a frontline producer and distributor of Liquefied Petroleum Gas (LPG), which is fast becoming a major source of industrial and domestic cooking fuel, with an LPG bottling plant located in Ikeja, Lagos State.