FO posts impressive 2015 financial results; records N7.01bln PBT


Friday, February 12, 2016 02:06PM / NSE

Forte Oil Plc., Nigeria’s premier integrated energy solutions provider, has released an impressive 2015 full year audited financial report showing a profit Before Tax of N7.01bn representing a 30% increase over the previous year.

The release of the full year audited result is a feat in the history of the Nigeria Stock Exchange as Forte Oil has set precedence by filing an approved result ahead of the regulatory deadline.

The board of directors have also proposed a cash dividend of N3.45 per share of the Company’s common stock which will be paid to all shareholders upon the ratification of the proposal at its forthcoming Annual General Meeting.

Financial Highlights

·         Revenue is N124,617bn compared to N170,128bn same period in 201

·         Profit before income tax increased 16.7% to N7,012bn compared to N6.006bn recorded in 2014

·         Profit after income tax increased 30.0% to N5,794bn compared N4,457bn same period in 2014

·         Earnings Per Share (EPS) grew 86.8% to N4.11 compared to N2.20 same period in 2014

·         Proposed dividend pay-out of N3.45k per share

Operational Highlights

·         Revenue fell by 25% from N122.6bn in 9M 2014 to N91.6bn in 9M 2015 as a result of reduced importation of petroleum products by the company due to prolonged delays by the government in making subsidies payment and a drop in pump prices. This was further exacerbated by nationwide strikes by downstream sector workers.

·         Increase in PPE of 15% is attributable to the N8.9 billion paid so far for the major overhaul exercise 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).

·         FUS achieved NGN3.2bn in revenues representing an increase of 62.4% against its 2014 revenues • Forte Oil witnessed an increase in capacity utilization at Geregu power plant from 105 MW in 9M 2014 to 138 MW in 9M 2015 (276MW as at December, 2015)

·         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, the Group Chief Financial Officer, Forte Oil PLC said:

“The decline in Revenue of 27% was as a result of the company strategy to reduce importation of Premium Motor Spirit so as to reduce the Company’s exposure to subsidy receivables from the Federal Government”.

He added further that “Other income increased by 190% due to sale of Investment property, investment in securities held to maturity, freight income from the investment made in the 100 trucks of the previous financial year to mention a few”.

“Our ability to provide a profit for our shareholders is 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 proved 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.

About Forte Oil Plc
Forte Oil Plc is a public liability company listed on the Nigerian Stock Exchange and a foremost indigenous major marketer of refined petroleum products a strong presence in the thirty-six states of Nigeria and the Federal Capital Territory (FCT), Abuja.

It is head quartered in Lagos, Nigeria’s economic nerve centre. The Company operates a network of 500 outlets spread across the Country with major fuel storage installations at both Apapa (Lagos State) and Onne (Rivers State).

Its Aviation Joint User’s hydrants in Ikeja and Joint Aviation depots in Abuja, Port Harcourt and Kano makes it one of Nigeria’s leading providers of aviation fuel for local and international airlines.

In addition to these strategic retail and commercial network in Nigeria, Forte Oil PLC is also well established in Ghana under the trade name-AP Oil and Gas Limited (APOG), with a network of retail outlets, liquefied petroleum gas plants and a lubricant blending arrangement with Tema Oil blending plant.

Forte Oil is currently using its presence in Ghana to leverage its expansion into other West African Countries as it seeks to dominate the African Energy market.

The Company also has a footprint in the upstream oil services sub-sector, where is has established a reputation of efficiency; servicing the upstream sector under trade name- Forte Upstream Services Limited (FUS).

It also engages opportunities in the upstream sector to fulfill its aspirations of being present at every point of the energy value chain.  Its acquisition of the 414 mw Geregu Power Plant is a demonstration of the company’s strategy to deliver long term returns for its shareholders.

Forte Oil PLC’s business philosophy is premised on building a high-performance organization with world-class business processes, strong corporate governance and compliance at all levels, culture of strong ethics and discipline and an enhanced safety, health and environment policy embedded across its value chain.

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