Forte Oil posted N7.9bn after-tax profit in H1
Forte Oil Plc posted a profit after tax of N7.9bn for the first half of 2018, compared to N4.11bn recorded in the same period last year.
The firm’s unaudited results for the period ended June 30, 2018 showed that its revenues increased by 32 per cent to N61.8bn from N46.7bn.
Its earnings per share grew by 47 per cent to N1.54 from N1.05 recorded in the same period of 2017, while total assets rose to N153bn from N147bn.
The firm said the first half of 2018 witnessed a more stable operating environment with higher oil prices, foreign exchange availability and improved petroleum product supply across the country.
It said in a statement, “As a company, we commenced our strategic plans and initiatives to re-examine our business model and optimise our balance sheet through asset disposal and expansion of our downstream operations in Nigeria.
“In May 2018, we obtained the approval of the board and shareholders at the 39th Annual General Meeting to pursue our divestment initiatives, and the company commenced the process to divest its interest in power, upstream services and marketing in Ghana. As at 30 June 2018, these subsidiaries were classified as disposal groups held for sale and as discontinued operations.”
The firm said its business suffered from huge interest cost occasioned by the non-payment of subsidy, interest and forex differential, adding, “This we believe would be reduced or eliminated with the disposal of the subsidiaries and eventual payment of the subsidy.
“Looking ahead, we shall focus on the continuing operations – the Nigerian downstream business – as we continue to drive growth through our expansion drive, backward integration, cost optimisation and the injection of capital through the asset sale to shore up working capital and reduce finance cost.”