Nigeria’s Forte Oil Plc has announced a profit before tax growth of 99 per cent to ₦10.6 billion in its financial year ended December 31, 2017 activities.
The firm’s audited results released on the Nigerian Stock Exchange (NSE), recently, showed that profit before tax grew by 99 per cent to ₦10.627 billion from ₦5.34 billion in the previous year of 2016. Its profit after tax, also rose from ₦2.89 billion in 2016 to ₦12.23 billion in 2017 due to a tax credit of ₦1.6 billion, while earnings per share rose to ₦2.89 from ₦1.99 in 2016.
Similarly, the oil major, recorded a revenue of ₦129.44 billion, down 12.9 per cent from ₦148.61 billion. Cost of sales was reduced by 17.7 per cent from ₦128.02 billion to ₦105.33 billion, while distribution expenses was reduced by 40.4 per cent from ₦3.02 million to ₦1.8 billion, leading to a growth of 17.2 per cent in gross profit to ₦24.12 billion, from ₦20.58 billion in 2015.
Administrative expenses declined to ₦10.12 billion, from ₦10.26 billion, net finance cost went down to ₦5.73 billion from ₦6.17 billion. In bid to reduce its finance cost last, Forte Oil Plc in 2016 raised ₦9 billion bond under its ₦50 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 ₦20 billion in new equity funds under its new capital raising, after it successfully raised ₦9 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.