Mike Adenuga-chaired Conoil Plc earned 63 per cent more in after-tax profit from January to March compared to the same period of 2020.
But the company’s turnover fell by over N5 billion as the energy firm gained relief after paying up N4.3 billion damages in installments to a trading partner in a legal wrangle that has dragged out for 14 years.
“The company is in litigation with Nimex Petrochemical Nigeria Limited (Nimex), one of its former suppliers of products. In 2007, Nimex sued the company for US$3,316,702.71 and US$127,060.62 being demurrage and interest incurred for various supplies of petroleum products,” Lagos-based Conoil said in its unaudited earnings report seen by PREMIUM TIMES on Wednesday.
“The current value of the judgment sum which is N4.3 billion has been fully provided for in these financial statements to mitigate any possible future loss.”
Profit after tax for Q1 2020 leapt to N423.931 million from N260.382 million on the back of payment of the final installment of the claim last year.
Conoil agreed to pay the judgement sum in the form of scheduled payment commencing around 2015, when it first disclosed details of the lawsuit in its earnings report.
Ruling in favour of Nimex, the Federal High Court ordered Conoil to pay $13.757 million, comprising the claim and interest at 21 per cent pending the decision of the case.
It “also granted a stay of execution with a condition that the judgment sum be paid into the court.”
Conoil has approached the Court of Appeal in Abuja in hopes of overturning the lower court’s decision.
Earlier, the Federal High Court issued a garnishee order mandating First Bank to pay Conoil’s money with the bank to the court.
Mr Adenuga, Nigeria’s second richest man, holds 74.4 per cent stake in Conoil via Conpetro Limited, and is said to be in contention to own the majority interest in First Bank.
Source: Premium Times