Conoil Rated Best in Investment Returns
Conoil Plc has been rated the best quoted company in the country in respect of its impressive record of robust returns on investment. In a comparative analysis of returns on stocks of 30 foremost companies in the various sectors, Conoil emerged a clear winner with 1,173 per cent, to lead 7UP Bottling Company and Guinness Nigeria Plc, which recorded 456 per cent and 429 per cent respectively.
Compared to yields from other sectors, petroleum stocks had the highest returns with 553 per cent, followed by the breweries/beverages subsector with 542 per cent. Trading and diversified improved returns by 302 per cent, consumer goods 136 per cent and healthcare 92 per cent.
In the banking subsector, Guarantee Trust Bank (GTB) led with 308 per cent; followed by Access Bank with 208 per cent, while United Bank for Africa (UBA) came third with 132 per cent.
The ratings were contained in a paper titled, "The Nigerian Stock Exchange Today and Tomorrow", presented in Abuja recently by a foremost stockbroker and Managing Director, Securities Transactions and Trust Company Limited (SECTRUST), Mr. Godwin Obaseki, at a workshop for Chief Executives of quoted companies.
The closest to Conoil among the players in downstream business was Total Nigeria Plc which recorded 295 per cent on returns and Mobil Nigeria Plc, 290 per cent. Texaco Nigeria Plc, African Petroleum and Oando scored 289 per cent, 257 per cent and 126 per cent respectively.
Over the years, Conoil Plc has maintained a record of steady growth in profitability and appreciable rise in sharehoiders' returns. Prior to its privatisation, it ran at a loss and paid no dividend for four consecutive years. The new core investors, however broke the jinx by declaring N69 million dividend in 2000, N171.5 million in 2001 and N686 million in 2002.
There are very strong indications that investors would continue to be interested in the company's stock in view of capital market analysts' forecast that it will remain the stock to beat for now. Already, the share price, which was as low as N15 is hovering between N175 and N185. The current trend is bound to continue when the results of its current operations and annual results for 2003 are released, especially with pointers that the company may declare another impressive dividend.
Stock analysts attribute the company's current esteemed position in the capital market to the various initiatives launched in its core businesses, including the construction of mega filling stations across the country, manufacture of top grade lubricants, development of liquefied natural gas, and provision of nonfuel retail services.
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