Forte Oil Records N7.9 Billion Half Year Profit After Tax

Forte Oil Plc has reported a growth of 93 per cent in profit after tax for the half year ended June 30, 2018. The unaudited results of the company for the period showed a revenue of N61.8 billion, up by 32 per cent compared with N46.7 billion posted in the corresponding of 2017.

Profit after tax from continuing and discontinued operations increased by 93 per cent to N 7.9 billion compared to N4.11 billion recorded in 2017. Earnings per share grew by 47 per cent to N1.54 compared to N1.05 recorded for the same period in 2017, while total assets improved by four per cent to N153 billion, up from N147 billion recorded for the same period in H1 2017.

According to the company, the first half of 2018 witnessed a more stable operating environment with higher oil prices, foreign exchange availability and improved petroleum product supply across the country.

“As a company, we commenced our strategic plans and initiatives to re-examine our business model and optimizing our balance sheet through asset disposal and expansion of our downstream operations in Nigeria. In May 2018, we obtained the approval of the board and shareholders at the 39th annual general meeting to pursue our divestment initiatives and the company commenced the process to divest its interest in Power, Upstream Services and Marketing in Ghana (APOG). As at 30 June 2018, these subsidiaries were classified as disposal groups held for sale and as discontinued operations,” it said.

The company explained that despite the operational challenges and discontinued operations, the company recorded 32 per cent growth in revenues, translating to N61.8 billion, compared to N46.7 billion in H1, 2017 as a result of improved product supplies. While administrative expenses reduced by nine from N3.82 billion recorded in 2017 to N3.48 billion in 2018.

“Furthermore, the business suffered from huge interest cost occasioned by the non-payment of subsidy, interest and foreign exchange differential. This we believe would be reduced or eliminated with the disposal of the subsidiaries and eventual payment of the subsidy. Looking ahead, we shall focus on the continuing operationsthe Nigerian downstream business as we continue to drive growth through our expansion drive, backward integration, cost optimisation and the injection of capital through the asset sale to shore up working capital and reduce finance cost,” it said.