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Investor sentiment toward Conoil has weakened following a sharp decline in earnings, raising fresh concerns about the company’s dividend outlook.
Conoil’s dividend payout, historically a source of pride for shareholders, is now under scrutiny after its 2025 financial results triggered doubts about whether the company can sustain its dividend streak.
The combination of significantly lower profit and a modest net cash flow from operations of N176 million has made it increasingly difficult to justify maintaining previous dividend levels.
On market performance, Conoil’s stock lost 52% of its value in 2025, closing the year at N187.20. The downward trend has persisted into 2026, with the stock recording an additional 9.72% decline so far.
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The sharp fall in share price has heightened concerns about valuation, particularly as the company is currently trading at 53 times its trailing earnings per share (EPS). This relatively high multiple suggests potential overvaluation, especially in light of reduced profitability.
The road to recovery
For investors, the key question is whether Conoil will maintain its dividend payout in 2025. Given the steep drop in earnings, management may need to revise its dividend policy to reflect current financial pressures.
However, even a reduced dividend could send a strong signal of stability and reaffirm the company’s commitment to shareholders. Such a move may also help stabilise the stock price and begin rebuilding investor confidence.
Looking ahead to 2026
As it navigates the current challenges, Conoil is expected to focus on cost-cutting measures, strengthening revenue from its lubricants segment, and reducing its debt burden to improve financial stability.
Although the recovery path may prove demanding, the company’s established market presence and operating history provide a foundation for potential turnaround.
For shareholders, expectations are now pinned on 2026 as a possible rebound year, with hopes that Conoil can restore growth, improve profitability, and deliver more consistent returns.
