LAGOS (Sundiata Post) – Mobil Oli Nigeria has reported Q2 2016 results which showed impressive growth for all key Profit and Loss (P&L) line items. Sales of N27.6bn were up 79.9% Year-on-Year (y/y) while Profit Before Tax (PBT) and Profit After Tax (PAT) grew by 86.6% y/y and 82.5% y/y to N3.8bn and N2.6bn respectively.
Topline growth more than offset a marginal gross margin contraction of -29bp y/y, a 14.9% y/y rise in operating expense (OPEX) and a double-digit decline in other income to N920m.
In a bid to resolve persistent nationwide fuel shortages, the federal government adjusted the national petrol pricing template to reflect a more market realistic fx rate (N285/$ at the time) and a new price ceiling of N145/litre. However, the naira has depreciated by more than 30% to approximately N300 to the US dollar since June following the central bank’s adoption of a floating fx regime.
Sequentially, sales, PBT and PAT all grew by 21.6% Quarter-on-Quarter (q/q), 41.7% q/q and 42.4% q/q respectively. H1 sales of N50.3bn grew by 57.9% y/y, while PBT and PAT were also up, by 58.3% and 51.7% respectively.
On an annualised basis, Mobil’s sales and PBT are currently tracking ahead of consensus full year 2016E estimates of N80.5bn and N9.2bn respectively.