CONOIL Plc’s profit weakened by 77 percent to N2.009 billion in the full year of 2025, down from N8.78 billion reported in 2024, according to the financial statement of the oil company released to the Nigerian Exchange (NGX) on Sunday.

The report shows that the oil major faces a court case with Nimex Petrochemical Nigeria Limited, which could cost it $13.757 million or N4.3 billion if the court of appeal upholds the ruling of the federal high court. The lower court has already given a judgment against Conoil, which includes the amount claimed and interest of 21 percent.

Conoil’s revenue dropped 7 percent to N301.721 billion in the full year of 2025, down from N323.128 billion reported in the corresponding periof of 2024. Surging costs are a major challenge for the oil company, with its cost of sales of N278.808 billion gulping 92.4 percent of the company’s revenue.

High costs deal big blow

Finance cost was a major issue for the company in 2025. Finance cost is the cost, interest, and other charges involved in the borrowing of money to build or purchase assets. Conoil’s finance cost surged by 162.46 percent, early triplling in one year to N10.38 billion in 2025 from N3.95 billion reported in the corresponding period of 2024.

The company incurred administrative expenses of N6.109 billion, representing a 33 percent increase in 2025 from N4.6 billion reported in 2024. Administrative expenses are costs incurred by a company or organisation that include, but are not limited to, the benefits and salaries of the administrative workers, as well as rent and managerial compensation, according to the Corporate Finance Institute.

Litigation stares Conoil in the face

According to Conoil, the company is facing a court matter, which could be costly.

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“The Company is in litigation with Nimex Petrochemical Nigeria Limited (Nimex), one of its former suppliers of
products. In 2007, Nimex sued the company for US$3,316,702.71 and US$127,060.62 being demurrage and interest
incurred for various supplies of petroleum products.

“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% till judgment was delivered and also granted a stay of execution with a condition that the judgment sum be paid into the court.

“The court also granted a garnishee order against First Bank of Nigeria Limited to pay the Company’s money with the bank into the court. Conoil Plc has appealed against the judgment to the Court of Appeal in Abuja.

“The appeal is pending and the Directors, on the advice of the external solicitors, are of the opinion that the judgement of the Federal High Court will be upturned. The current value of the judgment sum which is N4.3 billion has been fully provided for in these financial statements to mitigate any possible future loss.”

Debtors

The company also faces a debt of N80.121 billion, also known as third-party trade receivables. The oil company said third party trade receivables listed in the statement were non-interest bearing and included amounts which were past due at the reporting date but against which the company had not received settlement.

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The amounts due from related parties were unsecured, noninterest bearing, and repayable upon demand. “The Company has a payment cycle of between 30 and 60 days for credit sales. Specific provisions are made for trade debts on occurrence of any situation judged by management to impede full. The Company does not hold any collateral over these balances.”

However, the oil major made a provision of N6.275 billion for bad and doubtful loans, which it felt might not be repaid by customers.

“The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value,” the oil company noted.