Nigerian Billionaire Mike Adenuga Earns 3.1 Million from Oil Company

On the 28th of October, Nigerian oil and telecommunications mogul Mike Adenuga received dividends from his stake in Conoil Plc, a petroleum marketing company based in Lagos. The dividend totalled $3.1 million.

Mike Adenuga, who is the founder of Globacom Limited, the second-largest telecom services provider in Nigeria with more than 55 million subscribers, controls 74.4 percent of Conoil through one of his firms, Conpetro Limited. 

Since the beginning of the year, the stock price of the petroleum marketing company, which produces and sells lubricants under the “Quarto” brand as well as gasoline, kerosene, diesel, aviation fuel, and low-pour fuel, has increased by more than 19%.

RELATED:

Glo Launches Payment Service Bank: Implications for Nigerian Banking

Backdrop of Conoil’s dividend payment 

The N17.62 billion ($42.4 million) in retained earnings from the petroleum group were used to fund the $3.1 million dividend, which was electronically transferred into Adenuga’s bank account on Friday as part of the cash distribution decided upon by the board of directors.

The petroleum marketing company’s good financial performance in 2021 allowed for the dividend payment, which represents a 66.7 percent increase from the $1.86 million dividend Mike Adenuga earned in 2020.

Due to a variety of management-implemented cost-cutting measures, Conoil reported a 114 percent rise in profit at the end of 2021 from N1.44 billion ($3.46 million) in 2020 to N3.08 billion ($7.41 million).

The oil marketing company was able to take advantage of the year’s rise in petroleum product demand, which helped to drive a 7.9 percent increase in revenue from N117.47 billion ($282.6 million) in 2020 to N126.73 billion ($304.9 million), which supported the triple-digit percent increase in earnings.

As a result of the good performance, the board of directors approved a dividend to shareholders of N2.5 ($0.00601) per share, an increase over the N1.5 ($0.00361) dividend paid the previous year.

The market value of Adenuga’s investment in Conoil has increased by more than $5 million as a result of a 19.1% increase in the company’s share price on the Nigerian Exchange, in addition to the $3.1 million dividend from the group.

NEXT:

How Aisha Ayensu Grew Her Global Brand With No Initial Technical Skills