Forte Oil Plc yesterday announced its audited results for the year ended December 31, 2016, showing a revenue of N148.6 billion, up by 19.3 per cent from N124.6 billion in 2015. However, profit before tax fell by 24 per cent to N5.3 billion, from N7.0 billion, while profit after tax declined by 50 per cent to N2.9 billion, compared with N5.8 billion recorded in 2015.
An analysis of the results showed that cost of sale rose by 20.5 per cent from N106 billion in 2015 to N128 billion in 2016, while operating expenses declined by 2.9 per cent to N13.3 billion compared with N13.7 billion in 2015. Other income fell by 42 per cent from N4.1 billion to N2.3 billion. But net finance cost soared by 154.9 per cent from N1.7 billion to N4.3 billion, a development that affected the bottom-line. Based on the weak results, the directors did not recommend any dividend for the shareholders compared with N4. 5 billion dividend paid the previous year.
Forte Oil Plc had last year raised N9 billion bond under its N50 billion bond issuance programme, to refinance existing short term commercial bank loan obligations and to finance its retail outlet expansion.
The Group Chief Executive Officer, Forte Oil, Mr. Akin Akinfemiwa had said: “With the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice. This bond programme being the first in the downstream sector is testament to Forte’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.”
Similarly, the Group Executive Director, Finance and Risk Management, Forte Mr. Julius Omodayo-Owotuga said: “This series provides us with the necessary liquidity to actualise our growth strategies and positions the company for the years ahead. The pricing of this debt instrument demonstrates the markets’ belief in us and the pricing would help reduce our borrowing cost and increase profitability in the short and long term.”
Meanwhile, trading at the stock market ended the first month of the year on a bearish note as the Nigerian Stock Exchange (NSE) All-Share Index fell by 0.69 per cent to close at 26,036.24, while market capitalisation ended at N8.97 trillion.