Nigerian petroleum marketing company, Conoil Plc is putting forward N1.73 billion ($10.8 million) as cash dividends to its shareholders for 2011 following the profit growth the company recorded in the year under review.

This is contained in the audited report and accounts of the company that was recently released by the Nigerian Stock Exchange (NSE).

A closer examination of the report showed a 25 percent increase in dividend per share from N2 (1 cent) for 2010 to N2.50 (1.6 cent) for the 2011.

During the year, ConOil Plc’s net earnings per share rose from N4.02 kobo (2.5 cents) in 2010 to N4.25 kobo (2.64 cents) in 2011.

With the growth, Conoil share became the best-return stock in the petroleum marketing sector with current dividend yield of about 12 per cent and earnings yield of about 20 per cent.

Company sales grew to N157.51 billion ($10 billion) in 2011, a 53 percent growth from what it recorded in 2010. Profit before tax rose from N4.02 billion ($26.93 million) to N4.4 billion ($27.3 million). In addition, profit after tax increased from N2.79 billion ($17.3 million) to N2.95 billion ($18.3 million).

Analysts disclosed the company’s impressive performance was expected considering the petroleum firm’s consistent growth over the years.

In a response reported by BusinessDay, billionaire businessman and chairman of Conoil Plc, Mike Adenuga, said the results “were indicative of the commitment of the board and management to growing shareholders’ value irrespective of the operating challenges.”