Yemisi Izuora/Hyacinth Chinweuba
Forte Oil Plc, an indigenous integrated energy solutions provider, has released an impressive 2015 full year audited financial report showing a profit Before Tax of N7.01bn.
This represents a 17 percent increase over the previous year.
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 a precedence by filing an approved results 30days after year end ahead of the regulatory deadline of 90 days.
The board of directors have also proposed a cash dividend of N4.50bn which will be paid to all shareholders upon the ratification of the proposal at its forthcoming Annual General Meeting.
Generated revenue is N124.62bn compared to N170.13bn same period in 2014 while profit before income tax increased 16.7 percent to N7.01bn compared to N6.01bn recorded in 2014
Profit after income tax increased 30.0 percent to N5.79bn compared N4.46bn same period in 2014 while Earnings Per Share (EPS) grew 86.8 percent to N4.11 compared to N2.20 same period in 2014
The performance was attributed to the N9.6bn paid so far for the major overhaul of Forte Oil’s 414MW Geregu power plant aimed at optimising and increasing its generation capacity from 414MW to 435MW(with an estimated completion date for H1, 2016).
Forte Oil witnessed an increase in capacity utilization at Geregu power plant however, margins reduced from 58 percent to 42 percent due to increase in gas costs cause by exchange rate fluctuations.
Geregu Power Plc has declared a dividend of N2,50bn to be paid to all shareholders upon ratification of shareholders at the Company’s annual general meeting.
The company’s 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.
Commenting, Mr. Julius Omodayo-Owotuga, Group Executive Director, Finance and Risk Management, Forte Oil Plc said: “the decline in Revenue of 27% was as a result of the reduction in pump price for most petroleum products largely driven by the incessant decline in crude oil prices.
In addition, the company also decided to manage its foreign exchange and subsidy exposure by reducing the importation of petroleum products for the year 2015. He added further that
“Other income increased by 190% due to income from investment in securities held to maturity, freight income from the 100 trucks acquired the previous financial year and sale of investment property”.
“The increase in Admin Expenses is a result of our decision to exit Dollar denominated loans and convert same to Naira at prevailing exchange rates. “Our ability to grow shareholders wealth despite the unfavourable economic environment is a testament to our belief that the business is on a solid and safe trajectory and will continue to consolidate on gains made”
Also Commenting, Mr. 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 proven 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.