The Nigerian Equities Market began the week on a bearish as the Nigerian Stock Exchange (NSE) All-Share Index declined by 0.81 per cent to close at 27,634.99, while market capitalisation ended at N9.492 trillion.
Bears dominated the trading session with 26 stocks declined while only seven appreciated. Wema Bank Plc led the seven gainers, rising by 6.4 per cent, trailed by WAPIC Insurance Plc with 4.0 per cent. FCMB Group Plc appreciated by 2.7 per cent, while Skye Bank Plc garnered 1.6 per cent, just as African Prudential Registrars Plc gained 1.5 per cent.
Conversely, Nigerian Aviation Handling Company Plc led the price losers with 7.5 per cent, followed by Forte Oil Plc with 5.0 per cent as investors continued to react negatively to the nine months results of the oil product marketing firm. The company had declined by over nine per cent last week.
Forte Oil Plc posted 34.7 per cent decline in profit after tax (PAT) for the nine months ended September.
Although the company’s top lines showed growths, higher cost of finance and tax expenses compressed the bottom-line.
Forte Oil Plc recorded a gross revenue of N121.1 billion in 2016, showing an increase of 32.2 per cent from N91.6 billion in 2015. An analysis of the revenue showed that fuels accounted for N103 billion,, up from N76.2 billion in 2015. Lubricants and greases recorded N8.188 billion, compared with N5.161 billion in 2015, while power accounted for N7.931 billion as against N7.02 billion in 2015.
Cost of sale rose by 34.3 per cent from N78.6 billion to N105 billion, while profit before tax (PBT) stood at N15.5 billion, showing an increase of 19.4 per cent.
The company was able to keep operating expenses flat at N9.9 billion, against N10 billion in 2015. While other income fell by 13.9 per cent from N2.7 billion to N2.3 billion, net finance cost soared by 663 per cent to N2.2 billion. Consequently, the company ended the nine months with profit before tax (PBT) of N5.6 billion, from N5.3 billion in 2015. However, tax expenses rose by 182.6 per cent from N1.0 billion to N2.8 billion, hence PAT fell to N2.8 billion, down from N4.3 billion.
