Forte Oil posts 108% profit increase in first quarter

Forte Oil17 April 2014, Lagos – Forte Oil Plc (formerly AP Plc) has announced its unaudited results for the three months ended 31 March, 2014, showing impressive growth across its key ratios.

The company in a statement yesterday said its revenue grew by 31 per cent to N34.8 billion compared to N26.6 billion in the corresponding period of 2013.

Profit before income tax increased 101 per cent to N1.26 billion in 2013 compared to N633million recorded in 2013. Also, its profit after income tax increased 108 per cent to N1.1billion compared N530 million in the same period in 2013.

Forte Oil in the statement stressed that its revenue growth was attributable to increase in sales of fuels, such as premium motor spirit (PMS; petrol), automotive gas oil (AGO- diesel) and aviation fuel.

“Power generation also contributed 7.42 per cent and 44.13 per cent to the group’s revenue and profit-after-tax respectively as Forte Oil’s diversification strategy continues to yield positive income streams.

“Forte Oil formally took-over Geregu Power Plant on November 1, 2013 following a successful acquisition of the 414 power generation plant located in Kogi State of Nigeria, under the Federal Government-led privatization programme to divest public power assets, “it stated.

While promising improved returns to shareholders, it stated that the successful launch of its newly repackaged lubricants and aggressive consumer engagement activities will boost its market share.

Forte Oil added that the continued expansion of the company’s retail network at strategic locations in the country will improve its market dominance.

It also said aggressive growth and expansion of its industrial/commercial customer base will meet its objective of being the supplier of choice adding that strong performance from Geregu Power Plant despite operational challenges will further boost its earnings.

The Group Chief Executive Officer of Forte Oil Plc, Akin Akinfemiwa, had recently said: “As we move into 2013 and beyond, we are positive that we shall consolidate on the gains of 2012 to achieve exceptional performance as we move towards our vision of becoming Africa’s No 1 energy solutions provider.”

“As part of its now improved operational efficiency; controls have improved across business lines, stronger corporate governance and compliance are being ensured at all levels as well as the introduction of the foremost business enterprise solution-SAP.

“The results released today, is an indication that the company has finally turned the corner towards full recovery. Forte Oil Plc believes its efforts will in no time; translate to strong market dominance and thereon strong and sustainable profitability and robust returns to our shareholders,” he said.


– This Day

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