By InvestAdvocate
Lagos (INVESTADVOCATE)-Oil marketing firm, Forte Oil Plc said on Friday its pretax profit for the 2015 full year audited report climbed up 16.7 percent to N7.012 billion from N6.006 billion recorded a year ago.
Similarly profit after tax (PAT) grew 30 percent to N5.794 billion from N4.457 billion declared in 2014.
Revenue of Nigeria’s premier integrated energy solutions provider, dipped from N170.128 billion in the 2014 audited year end to N124.617 billion recorded in the same period of 2015; showing a depreciation of 27 percent.
According to an announcement from the company, the release of the full year audited result is a feat in the history of the Nigeria Stock Exchange (NSE) as Forte Oil has set precedence by filing an approved result ahead of the regulatory deadline.
The operational highlights by Forte Oil affirmed that its revenue was affected as a result of reduced importation of petroleum products by the company due to prolonged delays by the government in making subsidies payment and a drop in pump prices.
The company says this was further exacerbated by nationwide strikes by downstream sector workers.
It further affirmed that growth in profits is attributable to the significant increase recorded in the sales of energy in the power generation segment as well as Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Aviation Turbine Kerosene (ATK) and the Production of Chemicals; Lubricants and Greases.
Julius Omodayo-Owotuga, the group chief financial officer, Forte Oil Plc said:
“The decline in Revenue of 27 percent was as a result of the company strategy to reduce importation of Premium Motor Spirit so as to reduce the company’s exposure to subsidy receivables from the federal government”.
“Other income increased by 190 percent due to sale of Investment property, investment in securities held to maturity, freight income from the investment made in the 100 trucks of the previous financial year to mention a few,” he added.
“Our ability to provide a profit for our shareholders is testament to our belief that the business is on a solid and safe trajectory and will continue to consolidate on gains made,” Omodayo-Owotuga noted.
On his part, Akin Akinfemiwa, the group chief executive officer, said; “This result in a testing economic climate which we operate, is the reward from the investments made by the company in its core business and its people.
It also clearly demonstrates the resilience of our business. Furthermore, our vision to diversify into power generation has proved to be very successful not just in the near term but in the long term and we see tremendous growth opportunities in that space.
He further attributed the group’s sustained superior performance to highly motivated and skilled employees as well as excellent customer service delivery across all business lines.
Also, the board of directors have proposed a cash dividend of N3.45 per share of the company’s common stock which will be paid to all shareholders upon the ratification of the proposal at its forthcoming Annual General Meeting (AGM).
Forte Oil’s earnings per share grew 86.8 percent to N4.11 compared to N2.20 same recorded the same period of 2014.
Shares of the company at the close of the day’s session on the local bourse increased 4.91 percent to N324 from N326 posted the previous session; thereby gaining N16.00 per share.
