Conoil Plc, the Lagos-based petroleum marketer, delivered a sharp rebound in the first quarter of 2026 as profit rose to N3.89 billion ($2.9 million), compared with N292.05 million ($0.3 million) a year earlier. The jump in earnings was largely driven by lower sales costs.

The stronger bottom line came even as revenue eased. Turnover slipped to N71.45 billion ($52.6 million) from N79.25 billion ($58.3 million) in the same period last year. But tighter cost controls helped offset the decline. Direct cost of sales fell to N60.84 billion ($44.8 million) from N73.93 billion ($54.4 million), lifting gross profit to N10.61 billion ($7.81 million), nearly double the N5.31 billion ($3.91 million) recorded a year earlier.

Working capital efficiency strengthens margins

Those gains were underpinned by the scale of Conoil’s presence in Nigeria’s downstream oil sector. The company serves retail and industrial customers through a nationwide network of service stations while also supplying lubricants, liquefied petroleum gas and aviation fuel. Its broad footprint has enabled it to remain active across multiple segments of the energy market even as operating conditions remain challenging.

The results also point to tighter control over working capital. Conoil reduced its inventory holdings to N12.99 billion ($9.6 million), freeing up cash and limiting the burden of carrying excess stock. The move helped support margins at a time when businesses across Nigeria continue to contend with inflationary pressures, currency volatility, and higher operating costs.

Stronger financial base supports flexibility

The stronger earnings filtered through to the balance sheet. Shareholders’ equity increased to N43.13 billion ($32 million) from N39.23 billion ($29 million) at the end of 2025, while retained earnings rose to N38.96 billion ($28.7 million) from N35.06 billion ($25.8 million), reflecting the contribution of first-quarter profits.

At the same time, Conoil trimmed its liabilities to N94.77 billion ($70 million) from N100.12 billion ($73.7 million). Total assets stood at N137.91 billion ($101.5 million), supported by cash and bank balances of N12.29 billion ($9.04 million). Together, the figures suggest the company entered the rest of the year with a stronger financial position, giving it additional flexibility as it navigates Nigeria’s evolving energy market.