Nigeria: Forte Oil PLC's Profit After Tax Hits N5.3bn in Nine Months

4 November 2019

Shareholders of Forte Oil Plc are to witness bounteous harvest at the end of the current financial year given its nine months results ended September 30, 2019. The petroleum products marketing company reported strong top and bottom-lines in the period under review.

Forte Oil Plc posted a revenue of N123.55 billion in 2019 up by 30 per cent from N94.81 billion in 2018. Other income rose from N1.427 billion to N3.76 billion, helped by gain on sale of its subsidiaries. Operating profit stood at N4.18 billion, compared with N2.83 billion in 2018.

Finance income soared from N774 million to N4.18 billion, leading to a net financing income of N2.36 billion in 2019, as against net financing cost of N2.18 billion in 2018. Profit before tax jumped from N650 million to N6.53 billion, while profit after tax (PAT) soared from N349 million to N5.26 billion.

The new management of the company led by the Chief Executive Officer, Mr. Olumide Adeosun, had assured shareholders and other stakeholders of better value.

According to Adeosun the company would focus on increasing volumes, diversifying business operations, widening distribution networks and extracting potential synergies to boost revenue.

He added that the company would also invest massively in the downstream sector to achieve desired growth.

He said that despite the regulated price of petrol product in the country, Forte Oil would still break even in other petroleum products in the downstream sub-sector.

And apparently to implement its growth strategies, the company got recently the approval of its shareholders to allow it enter into discussions with Prudent Energy & Services Limited and or any company or individual(s) representing it in connection with the acquisition of identified downstream assets including but not limited to plant and machinery, trucks, stations and subject to independent valuations on fair value, enter into subsequent binding agreements on comparable arm's length/commercial terms in relation to the assets to be acquired.

The shareholders also authorised the directors and/or management of the company be authorised to approve, sign and/or execute all documents, appoint such professional parties and advisers, as may be necessary to give effect to the above resolutions, including without limitation, complying with the directives of any regulatory authority and all acts carried out, steps taken and documents executed (or to be executed) by the directors and/or management of the Company in connection with the above resolutions.

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