Forte Oil Posts N1.4 Billion Half-year Profit

Forte Oil Plc announced a profit after tax of N1.39 billion for the half year-ended June 30, 2013, an increase of 63 per cent when compared to N855 billion earned in the corresponding period of 2012.
Also, the company’s revenue rose by 21 per cent to N59.9 billion from N49.7 billion recorded in the same period of 2012.
The Group Chief Executive Officer of the company, Mr. Akin Akinfenwa, who made this known while presenting company’s Facts Behind the Figures at the Nigerian Stock Exchange (NSE), attributed the increase in revenue to rise in supplies and depot expansion activities.
However, he said gross profit of the company declined by 14 per cent to N5.73 billion from N6.65 billion recorded in the same period of 2012.
This, he said, was due to demurrage and other unavoidable import- related charges, including reduction in lubes sales.
He said administrative expenses dropped from N3.15 billion in the 2012 half year to N2.97 billion in the review period due to improved control and cost-effective strategies.
On the company’s short-term transformation strategy, Akinfenwa said Forte Oil would consolidate market position, grow profitability through increased revenue and elimination of wastages.
Others, he added, were expansion through strategic acquisitions of retail assets, improved focus on core business by enhancing good corporate governance and business ethics.
Speaking on the medium term goals, he said the company would diversify group earnings across the energy value chain, take over and restructure Geregu power generating plant.
He added the company would increase presence in the West African markets such as Liberia, Togo, Sierra Leone and expand into alternative energy and midstream oil and gas through joint ventures, strategic alliance and acquisitions.
Oil and Gas Press