Press Release
Proposes N4.31 billion dividend payout to shareholders
January 31, 2013: LAGOS, NIGERIA– Forte Oil Plc (formerly AP PLC) Nigeria’s foremost indigenous integrated energy solutions provider has announced a 467% increase in its full year profit before tax to post N6.524bn for the period ending December 31, 2013.
Financial Highlights:
- Revenue grew 41% to N128bn compared to N91bn same period in 2012
- Profit before income tax increased 467% to N6.52bn compared to N1.15bn recorded in 2012
- Profit after income tax increased 397% to N5.00bn compared N1.01bn same period in 2012
- Earnings Per Share (EPS) grew 365% to N4.32 compared to N0.93 same period in 2012
- Proposed dividend payout of N4.31 billion at N4 per share
Operational Highlights:
- Achieved a 1164.55% share price growth to emerge the best performing and investment stock on the NSE in 2013
- Successful capital reorganisation to offset accumulated losses of more than N55.98 billionagainst share premium
- Successful diversification into Nigeria’s power sector with the acquisition of 414MW Geregu power plant under the FGN-led privatisation programme
- Introduction of new synthetic lubricant – Synth10000 and re-packaging of its entire lubricants range to offer customers additional value.
- Improved and optimised logistics across its entire distribution network
- Streamlined Business Processes to improve overall business efficiency and enhance superior customer service delivery
- Significant expansion in the company’s retail network to boost market share and profitability
- Aggressive Growth and expansion of its industrial/commercial customer base to meet its objective of being the supplier of choice
The company’s growth in revenue is attributable to the significant increase recorded in the sales of its fuel products segment, comprising Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Aviation Turbine Kerosene (ATK); as well as Production Chemicals; Lubricants and Greases. The newly acquired Power Plant also contributed significantly to the revenue stream. The group’s profitability was enhanced by interest income earned on bank deposits, following the implementation of efficient cash management strategies.
Commenting, Mr. Julius Omodayo-Owotuga, the Group Chief Financial Officer, Forte Oil PLC said: “We closed 2013 with a 41%, 467% and 365% growth in revenue, profit before taxes and earnings per share respectively. These growths are by-products of a well executed business transformation strategy in the last 24 months covering corporate governance, risk management and controls, business revitalization, development and expansion.
Our 2013 PBT of NGN6.52bn is a clear demonstration that Forte Oil Plc is on a clear path to dominate our primary market; the downstream petroleum marketing sector. Our capital reorganization approved by our esteemed shareholders during the year, has also put us in a position to continually guarantee distribution to our shareholders without jeopardizing growth opportunities. We shall continue to pursue initiatives that spur business growth and efficiency, liquidity management and aggressive diversification into related high margin business that would continue to increase shareholder value and distributions on an annual basis.
We consolidated the operations of our newly acquired power plant in the 2013 financial statement and we expect this subsidiary to be our major growth driver going forward. Our unflinching commitment to financial and business disclosures has resulted in the filing of our audited December 2013 financial statements in the month of January 2014 which we now understand has set a 50year record on the Nigerian Stock Exchange. If you may recall, we were and still is the first company to present audited half year results in the downstream petroleum sector. The timely presentation of our financial is hinged on our drive to create value to the ultimate benefit of the investment community.”
Also Commenting, Mr. Akin Akinfemiwa, Group Chief Executive Officer, Forte Oil PLC said; “We are very pleased with our business performance in 2013. It is indeed a true test of our commitment to our three-year strategic business transformation initiative which commenced in 2012 aimed at repositioning the business on the solid foundations of strong corporate governance and business ethics, enhanced safety health and environmental practices, effective business controls across all business lines as well as superior customer service delivery. The implementation of these without a doubt has impacted the bottom line and this is expected to continue in line with our mission of building a long-term successful company through positive actions that boost investor confidence and thus make Forte Oil the Investment of choice globally.
Our firm belief in our vision of being Nigeria’s integrated energy solutions provider can be seen in the strategic acquisition of retail assets to consolidate market position and grow profitably through increased revenue, enhanced superior customer delivery and cost leadership. This is our short-term focus. Our short-medium term focus of planned expansion into the Upstream Oil & Gas sectors through participation in Government bids rounds and acquisition of marginal fields from IOCs, remains on track.
We thank our shareholders for their firm belief in us in the course of our business transformation and also use this opportunity to assure them of better performance in the future.”
For more information, please contact;
Odion Aleobua
Head, Brand and Corporate Communications
