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 Daily Independent Online.
* Friday,July 16, 2004.
Conoil posts high return on investment
By Mojeed Jamiu
Finance Editor, Lagos
Conoil Plc has
recorded a high Return on Investment (ROI), as a result of its impressive
records on the floor of the Nigerian Stock Exchange (NSE).
In a comparative analysis of
returns on stocks of 30 foremost companies in the various sectors, the
petroleum marketing firm led with 1,173 per cent, ahead of 7-UP Bottling
Company and Guinness Nigeria Plc, which recorded 456 per cent and 429 per
cent respectively.
Petroleum stocks also have the
highest returns with 553 per cent, compared to yields from other sectors,
followed by the breweries/beverages sub-sector with 542 per cent. Trading
and diversified stocks improved returns by 302 per cent, consumer goods,
136 per cent and healthcare 92 per cent.
In the banking sub-sector,
Guaranty 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 the Managing Director,
Securities Transactions and Trust Company Limited, Mr. Godwin Obaseki, at
a workshop for the managements of quoted companies.
Total Nigeria Plc, which
recorded 295 per ROI and Mobil Nigeria Plc, 290 per cent were next to
Conoil among the players in the downstream sector. 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 shareholders' 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 about five years ago, is now hovering between
N175 and N185. The current trend is expected to continue when the results
of its current operations and annual results for last year 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
non-fuel retail services.
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