Forte Oil declares N6.01b profit-before-tax

FORTE Oil PLC, a foremost indigenous major marketer of refined petroleum products, has announced audited results for the for the twelve-month period ended 31 December, 2014, with the following highlights:

Financial Highlights:

Revenue increased by 32.88% to N170.13 billion compared to N128.03 billion recorded same period in 2013 

Gross profit increased by 51% to N18.46 billion compared to N12.26 billion recorded same period in 2013

Operating profit increased by 30% to 8.14 billion compared to N6.27 billion recorded same period in 2013

Profit -Before-Tax of N6.01 billion recording a 7.94 % decrease compared to N6.52 billion same period in 2013  

Operational Highlights:

Completion of our 3 year transformation programme which includes strategic retail business expansion, increased commercial customer base for both fuels and lubricants, improved operational efficiency as well as human capital development.

Increased market share and revenues from the sale of refined petroleum products – Premium Motor Spirit (PMS or petrol), Automotive Gas Oil (AGO or Diesel) Aviation Turbine Kerosene (ATK) and Premium Grade Quality Lubricants.

Gains from our recent diversification into the power sector contributed N2.1 bill in Profit After Tax compared to N345mill in 2013 which represents an increase of 500% year on year.

Efficient and effective logistics with the injection of 100 brand new trucks to support the uninterrupted supplies of petroleum products across the country and exceptional customer service delivery.

In his comments, Mr. Julius Omodayo-Owotuga, the Group Chief Financial Officer, said: “The 7.94% drop in the Group’s Profit Before Tax is largely attributable to the 10% devaluation of the Naira in November 2014 and increased finance costs caused by huge subsidy receivables from the Federal Government of Nigeria. These receivables were outstanding for an average of 270 days compared to the 45 days provided for in the PSF scheme. Also in 2013, we had non-recurring income of N2.11 billion from sale of property and interest received from PPPRA relating to late payment of subsidies in 2010 and 2011. We believe the business is resilient, stronger, sustainable and better positioned for the challenges ahead. This is evident in the 33% increase in turnover and 30% growth in our profit from core operations.

   Also Commenting, Mr. Akin Akinfemiwa, the Group Chief Executive Officer, said; “having successfully completed our record-breaking 3-year business transformation in December 2014, we are set to consolidate our achievements as we grow our market to maximize value for our esteemed shareholders.  We have now built a sustainable business model which has contributed to the Group’s profitability of NGN6.0 bill against the backdrop of a slowing economy, increased insecurity (which has led to revenue loss in the North Eastern Market), political uncertainty, weaker petroleum products demand and a volatile exchange rate to mention a few. We shall continue to navigate through an ever challenging business environment and industry in our quest to actualise our vision of being Africa’s foremost integrated energy solutions provider. 

  We shall continue to innovate with respect to products and service offerings and diversify our revenue base, maximise our Non- Fuel Revenue (NFR) opportunities, as a part of our strong resolve to building a long-term successful company.