Forte Oil Plc has released its nine-months result which ended September 30, with profit after tax increasing by 46.72 per cent to N4.01 billion as against N2.73 billion recorded in the corresponding period last year.
The company also reported a 175 per cent increase in operational profit to N5.5billion compared to N2billion the year before just as the Pre-tax profits also increased 61.6 per cent to N5.2billion compared to N3.2billion the year earlier.
Revenue also grew 33.1 per cent to N122.58 billion from N92.125 billion recorded the same period in 2013 just as the company’s gross profit stood at N13.2 billion in contrast to N8.5 billion recorded in 2014.
However, basic earnings per share (EPS) of the oil marketer declined by 19 per cent to N2.04 from N2.52 in 2013.
The result shows that the total current assets of the company soared to N68 billion representing an increase of 39 per cent as at the end of September 2014, in contrast to N49 billion recorded recorded in the same period last year.
Total equity attributable to owners of the company declined to N12.2 billion during the period as against N13 billion in 2013 while the total equity and liabilities stood at N125.9 billion up from N104.6 in 2013.
Earlier, the company said it would be targeting acquisition of upstream assets. According to its Group Chief Executive Officer, Mr. Akin Akinfemiwa, who said this in Lagos, investment in this sub-sector will enhance the company’s profitability as well as shareholders returns.
Akinfemiwa explained that although this is one of the company’s immediate strategic initiatives, but it also needs to be managed very well considering the level of resources involved.
He said that the company would form strategic alliances to achieve its goal, stating that it has also identified potential partner.
He added that the company would acquire marginal and also buy existing bloc from International Oil Companies (IOC’s).
The Forte Oil boss listed other strategic initiatives to include strengthening of the company’s corporate governance structure, achieving market dominance through the expansion of retail infrastructure, commercial business and non-fuel revenue; generating the installed capacity of 414MV at Geregu through the major overhaul of the GPP, diversifying into related high products and improving on logistics through the acquisition of additional 100 trucks to the already acquired 100 to make it 200 in total.
Source : SunOnline