01 February 2017, Lagos – Forte Oil Plc reported a profit before tax of N5.34bn for the year ending December 31, 2016.
The firm disclosed this on Tuesday in its result filed with the Nigerian Stock Exchange.
The group’s profit before tax for the same period last year, closed at N7.01bn.
It recorded revenue of N148.61bn in 2016 compared to N124.62bn reported a year ago.
In November 2016, Forte Oil succeeded in raising N9bn from the capital market to support its operation and drive its expansion strategy. The capital-raising (in bonds) was a five-year fixed rate issue and the first series of its proposed N50bn bond issuance programme.
The oil firm had said then that the funds raised would be deployed to refinance existing short-term commercial bank loan obligations and its retail outlet expansion. The company has an issuer rating of A- long-term and A1- short term rating by the Global Credit Rating Company.
The Group Chief Executive Officer, Mr. Akin Akinfemiwa, was quoted to have said, “The raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil as an investment of choice.
“This bond programme being the first in the downstream sector, is a testament to Forte Oil’s position within the downstream sector and allows the company to actualise the vision of the board to continue to provide value to its shareholders regardless of the economic climate.”
The bond was listed on the NSE and FMDQ OTC Exchange until maturity date in 2021. United Capital Limited served as the lead financial advisor/issuing house to the transaction while Boston Advisory Limited, FBN Capital Limited, Planet Capital Limited and Vetiva Capital Management Limited served as joint financial advisors/issuing house.