Forte Oil Plc has posted an impressive growth in its profit before tax to N10.6 billion in the financial year ended December 31, 2017.
The audited results released on the Nigerian Stock Exchange (NSE) yesterday showed that profit before tax grew by 99 per cent to N10.627 billion from N5.34 billion in the corresponding period of 2016.
Also, profit after tax rose from N2.89 billion in 2016 to N12.23 billion in 2017 due to a tax credit of N1.6 billion, while earnings per share rose to N2.89 from N1.99 in 2016. In all, Forte Oil recorded a revenue of N129.44 billion, down 12.9 per cent from N148.61 billion.
Cost of sales was reduced by 17.7 per cent from N128.02 billion to N105.33 billion, while distribution expenses was reduced by 40.4 per cent from N3.02 million to N1.8 billion, leading to a growth of 17.2 per cent in gross profit to N24.12 billion, from N20.58 billion in 2015.
Administrative expenses declined to N10.12 billion, from N10.26 billion, net finance cost went down to N5.73 billion from N6.17 billion. In bid to reduce its finance cost last, Forte Oil Plc in 2016 raised N9 billion bond under its N50 billion bond issuance programme, to refinance existing short term commercial bank loan obligations. The funds were also meant to refinance its retail outlet expansion.
Group chief executive officer, Forte Oil, Mr. Akin Akinfemiwa said “with the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice.
“This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate” he said.
Meanwhile, in 2017, the company was supposed to raise N20 billion in new equity funds under its new capital raising, after it successfully raised N9 billion in debt issue.
Company Secretary, Forte Oil, Akin Olagbende, in a statement released at the NSE, stated that the board had taken a strategic decision to put the offering on hold pending the conclusion of an ongoing corporate restructuring. According to him, the company is currently exploring opportunities to maximise emerging opportunities in the Nigerian energy sector, which will be to the ultimate benefit of all stakeholders.