Forte Oil declares N2.7billion profit in 2013 Q3

Forte Oil Plc, one of the indigenous marketers of refined petroleum products has announced a N2.7 billion Profit-After-Tax(PAT) in its unaudited results for the nine months period ended September 30, 2013.

The company’s financial position which was made available to the Nigerian Stock Exchange, (NSE) showed that while the PAT rose by 317 percent from N0.7 billion in 2012, Profit-Before-Tax, (PBT) grew by 258 percent to end the year at N3.2 billion compared to N0.9 billion in the same period under review.

Similarly, revenue increased by 29 percent to N92 billion from the N71 billion recorded same period in 2012 while Earnings Per Share (EPS) increased by 317 percent to close the year at N2.54.

A further analysis of the company’s financials showed that the company focused on its ‘Business Transformation Programme’ which includes strategic retail business expansion, growing of its commercial customer base and non-fuel revenue activities.

According to the company’s document to the NSE, it recorded “increased revenues from the sale of refined petroleum products – Premium Motor Spirit, (PMS or petrol), Automotive Gas Oil, (AGO or Diesel) Aviation Turbine Kerosene, (ATK) and Premium Quality Grade Lubricants.

It also laid claim to an improved and optimised logistics across its entire distribution network and streamlined business processes to improve overall business efficiency and consequently superior customer service delivery.

The group’s profitability was more than its third quarter projection of N2.6 billion profit after tax.

In the same vein, the N92 billion revenue recorded in Q3 2013 also surpassed the N78 billion expected in the period under review.

In his comments, the Group Chief Financial Officer, Forte Oil Plc, Mr. Julius Omodayo-Owotuga, said, “with a return on equity of over 26 percent and a 317 percent increase in Profit After Tax year-on-year (YOY), it is clearly a new dawn at Forte Oil Plc as we consolidate the gains of our business restructuring efforts.

“Our financial and overall business performance as at end of Q3 is a clear demonstration that Forte Oil Plc is on a clear path to dominate our primary market, the downstream petroleum marketing sector”.

Julius added that, “We shall continue to pursue initiatives that will spur business growth and efficiency, liquidity management and aggressive diversification into related high margin business that would continue to increase shareholder value such as our recent acquisition of the 414 MW Geregu Power Generation Plant in Kogi State”.

Also commenting, the Group Chief Executive Officer, Mr. Akin Akinfemiwa, said, “our strong performance is a testimony of our clear focus on our business transformation initiatives which include solid corporate governance and business ethics, enhanced safety health and environmental practices across all business lines and superior customer service delivery.

“We remain committed to our mission of building a long-term successful company, boosting investor confidence by making Forte Oil Plc the investment of choice in Nigeria and globally, and creating and sustaining robust returns to our shareholders”.