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Expertly advice by Dr Mike Adenuga Jnr Globacom And Conoil Plc Chairman. How Oil Sector Reforms Will Affect Nigeria’s Economy: Adenuga’s Vision for Conoil’s Future Growth
The bold reforms initiated by President Bola Tinubu’s administration are set to reshape Nigeria’s oil sector and provide a significant boost to the economy, according to Dr. Mike Adenuga Jnr, Chairman of Conoil Plc. These reforms are aimed at bolstering the country’s local oil refining capacity and transforming the downstream petroleum sector, creating a more sustainable and robust energy market.
Dr Mike Adenuga Jnr Globacom And Conoil Plc Chairman
Adenuga emphasized that the government’s commitment to strengthening local refining capabilities is a strategic move that will benefit the national economy in several key ways. By reducing reliance on imported petroleum products, Nigeria can curb the demand for foreign exchange, which would, in turn, strengthen the naira and stabilize domestic fuel prices.
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Adenuga’s Assurance to Shareholders: Strong and Sustainable Performance
At Conoil’s 54th Annual General Meeting (AGM) in Uyo, Akwa Ibom, Adenuga assured shareholders that despite a challenging business environment, the company has remained resilient and focused on delivering long-term growth. In the 2023 financial year, Conoil Plc recorded remarkable performance, showcasing the potential for sustained growth in the face of economic adversity.
Revenue Growth: Conoil achieved a 53.2% increase in revenue, reaching N201.38 billion, up from N131.42 billion in 2022.
Profitability: Profit Before Tax (PBT) surged by over 100%, from N6.13 billion in 2022 to N12.28 billion in 2023.
Earnings Per Share (EPS): The company saw a 99% rise in EPS, reaching N14.22, compared to N7.14 in the previous year.
Net Asset Growth: The company’s net assets grew by 32.5%, reaching N47.70 per share.
Adenuga highlighted that these results reflect the strong capacity investments Conoil has made to ensure sustainable growth and meet the long-term needs of its expanding business.
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The Impact of Oil Sector Reforms on Nigeria’s Economy and Conoil’s Future
The ongoing reforms in Nigeria’s oil sector, particularly efforts to develop local refining capabilities, are expected to have a transformative effect on the economy. Adenuga praised the federal government for its strategic focus on addressing critical energy issues and developing the local refining infrastructure. This transformation is poised to reduce the nation’s dependence on imported fuel, positively impacting the national balance of payments and helping to stabilize the foreign exchange market.
For Conoil, these reforms present a unique opportunity to consolidate the progress made over the years, while continuing to enhance value for shareholders. The company’s commitment to excellence in customer service and shareholder rewards remains at the core of its strategy.
“We promise our shareholders that we will continue to set the pace for growth in our industry,” Adenuga said during the AGM, underscoring Conoil’s vision of long-term, sustainable growth.
Dividends Reflect Conoil’s Strong Performance in 2023
In recognition of the company’s solid financial performance, Conoil shareholders approved a final dividend payout of N1.73 billion for the 2023 financial year. This payout translates to N3.50 per share, reflecting the company’s continued commitment to rewarding investors. The impressive performance also included a substantial improvement in profitability, highlighting Conoil’s ability to thrive even in a tough business climate.
Conclusion:
Oil Sector Reforms and the Path Forward for Nigeria’s Economy
As Nigeria’s oil sector undergoes transformative reforms, the nation stands to gain from enhanced local refining capacity, reduced fuel imports, and improved economic stability. For Conoil Plc, these changes offer an opportunity to build on its successful track record, ensuring consistent growth and greater returns for shareholders.
Dr. Mike Adenuga remains confident that the bold steps being taken by the government will not only benefit the energy sector but also contribute to the overall growth of the Nigerian economy. With a vision focused on sustainability, Conoil is positioned to play a pivotal role in this economic evolution, ensuring a stable and prosperous future for its stakeholders.
