23 December 2015, Lagos – Petroleum products marketing firm, Forte Oil Plc, has increased its net income by seven per cent to N4.2bn compared to N4bn recoded in the same period the previous year.
The company’s other Income post increased by 216 per cent to 2.6bn compared to N0.84bn in the third quarter of 2014, largely due to gains on disposal of investment property, accrued interest and investment income.
It made these disclosures at its investors’ conference held in Lagos.
Speaking at the forum the Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa, said the revenue fell by 25 per cent from N122.6bn in 2014Q3 to N91.6bn in 2015Q3 as a result of reduced importation of petroleum products by the company due to prolonged delay by the government in making subsidy payment and the drop in pump prices.
“This was further exacerbated by nationwide strikes by downstream sector workers,” he added.
As of 2015Q3, Forte Oil’s total assets declined from N139.2bn in the 2014 financial year to N131.3bn, as a result of by dividend pay-out, payment of trade creditors of N10bn, and acquisition of property, plant and equipment.
He said, “Increase in the PPE of 15 per cent is attributable to the N8.9bn paid so far for the major overhaul exercise of Forte Oil’s 414 megawatts Geregu power plant aimed at optimising and increasing its generation capacity from 414MW to 435MW(with an estimated completion date for 2016 first half.
“This business segment of Forte Oil remains our key growth driver and contributes 61 per cent to our group profit before tax in 2015Q3.”
On corporate governance, the firm reported a two-year back to back satisfactory report on annual review of corporate governance by PricewaterhouseCoopers and a consistent Nigerian Stock Exchange early filer since 2012.
On its 2016 strategy, the company said it would deepen focus on high margin products like lubricants and throughput per station.
It is also looking at fully exploiting Liquefied Petroleum Gas business particularly LPG retailing and bottle refilling.
It added, “We will optimise and expand the Geregu power plant asset; diversify into the upstream space through profitable acquisition of upstream assets; harness partnerships with convenience stores, financial institutions and telecommunications firms and increase footfall to our stations.
“We’ll introduce new product lines – Bitumen, LPFO and LPG, and diversify our high margin-related businesses while optimiing working capital mix.”
The company also said it will achieve optimal term structures for loans and drive efficient inventory management and trade accounts receivables management.