Nigerian lubricants blender and marketer Conoil reported 63% less gross profit for the fourth quarter of 2022 and a 57% drop in gross profit for the full year, likely reflecting a decrease in sales for the quarter and much higher cost of sales for the full year.
Gross profit for Conoil’s lubricants segment dropped to ₦282.3 million naira (U.S. $613,000) in the fourth quarter, compared to ₦754.3 million in the same period of 2021. For the full year, the segment’s gross profit fell from ₦2.9 billion to ₦1.3 billion.
Fourth quarter sales for the lubricants segment decreased 7% to ₦2.8 billion. For the full year, lubricants segment sales climbed 15% to ₦11.1 billion.
Cost of sales for the lubricants segment rose 11% in the quarter to ₦2.5 billion and ballooned 45% to ₦9.9 billion for the full year.
Products that Conoil sells under its lubricants segment include transportation and industrial lubricants, greases, process oils and bitumen.