This surge in share price followed the publication of its third-quarter financial results, which indicated a pre-tax profit rise of N803 million, reaching N5.02 billion, alongside a 35.10% year-over-year revenue increase to N68.5 billion.
In the trading week starting November 4, 2024, positive market sentiment surrounding the company's stock intensified, as it consistently closed higher for four consecutive days, elevating its price from N189.30 to N260.00.
This performance positioned Conoil as the third-largest gainer on the weekly advancers' list, trailing only JohnHolt and Eunisell.
Market trends and price movements
Conoil commenced 2024 with a share price of N83.90, recovering from a decline in late 2023 that saw its value drop to N80.20, and concluded January at N101.00, indicating a slight recovery.
From February to June, the stock exhibited limited fluctuations, with slight increases in April and May nudging it into the N105 range.
A significant shift occurred in July, as the share price surged by 37%, rising from N105 to N144, fueled by a strong trading volume of 8.2 million shares.
August experienced minimal price changes despite a trading volume of 2.7 million shares. However, September and October saw a resurgence, with the stock climbing 31.45% over the two months to finish October at N189.30.
As of the trading week ending November 8, Conoil's upward trend persisted with a 37.35% weekly gain, supported by trading volumes of 5.2 million shares, propelling the price to a new high of N260.00 and achieving a year-to-date growth of 209.89%.
Possible Factors Contributing to the Positive Market Sentiment
In July 2024, Conoil reported a remarkable 53% increase in revenue year-over-year, totaling N201 billion for the fiscal year 2023. Impressively, the company generated 45% of its total revenue for 2023 within the first quarter of 2024, amounting to N91 billion.
The month of July concluded with a notable surge in trading activity, with 8.2 million shares exchanged, resulting in a rise in share price from N105.00 to N144.00.
In August, Conoil published its Q2 financial results, revealing a 13.34% year-over-year growth in pre-tax profit, increasing from N4.1 billion in 2023 to N4.6 billion in 2024. This positive trend continued into September and October.
In early October, Conoil announced a final dividend of N3.50 per share, followed by the release of its Q3 financial results in November, which indicated a pre-tax profit increase to N5.02 billion. Following this announcement, the company’s share price surged by over 37% during the week ending November 8.
In the annual general report released in July, Dr. Mike Adenuga, the chairman of Conoil, highlighted the company's commitment to providing sustainable value for its shareholders.
“The company is driven to provide exceptional value for its shareholders, ensuring a consistent rise in share price. Our focus is on identifying and pursuing new opportunities while taking calculated risks to achieve our strategic objectives,” he remarked.
Conoil’s strong financial performance and increasing share price demonstrate its capability to thrive in a fluctuating market landscape.