Conoil Plc, an oil marketer has reported second quarter (Q2), 2020 results showing a 67 percent slide in profits largely as a result of lower sales.
Revenues for the period of N57.4 billion was 20 percent lower than the earlier 2019 period, while cost of sales moderated slightly to N52.6 billion from N65.5 billion in Q2, 2019.
Profit for the period came in at N338 million down from N1.032 billion in 2019.
Conoil reported litigation claims of N372 million in the June period.
The firm is in litigation with Nimex Petrochemical Nigeria Limited (Nimex), one of its former suppliers of products and a firm recently indicted by the Economic and Financial Crimes Commission, (EFCC), for alleged fraud relating to a fuel subsidy scam.
The Federal High Court gave judgment in favour of Nimex in the sum of US$13,756,728 which included the amount claimed and interest at 21 percent till judgment was delivered and also granted a stay of execution with a condition that the judgment sum be paid into the court.
The current value of the judgment sum is N4.3 billion.
Conoil says that a full provision of N4.3billion has been made in its financial statements to mitigate any possible future loss.
Conoil shares are up 1.8 percent in the past year and currently trade at N16.90 per share for a market capitalisation of N11.72 billion.