Forte Oil Q3 PAT Drops By 35%

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Forte Oil Plc has recorded a 34.73 per cent decline in profit after tax for the third quarter ended September 30, 2016. The group in a filing with the Nigerian Stock Exchange (NSE) said its net earnings during the period under review stood at N2.796 billion as against N4.284 billion reported in 2015, accounting for a drop of 34.73 per cent.

However, its pretax profit grew by 6.52 per cent from N5.288 billion a year earlier to N5.633 billion in 2016. Revenue was up by 32.16 per cent from N91.616 billion against N121.083 billion recorded during the period under review. Forte Oil Plc had said it planned to raise N50 billion in fresh capital through debt instruments before the end of 2016 for the expansion of its operations.

The group chief executive officer of Forte Oil, Mr Akin Akinfemiwa, made this known recently at the company’s Facts Behind the Figures presentation on the Exchange in Lagos. He said: “We will be raising debt capital in 2016 and we are in discussion with NSE but for equity fund raising, it will not hap-pen this year, maybe in the future.”

He added: “We want is to raise long term debts and make our interest rate very predictive. The first series of the fund will be between N10 and N15 billion.” Forte Oil had also made a declaration of N3.45 kobo dividend to shareholders for the full financial year of 2015.

Although the group involved in retail oil business, power generation and oil lifting recorded a sharp fall in turnover last year from N170.1 billion to N124.6 billion, it was able to hold other costs to return a wholesome PAT of N5.79 billion, higher than the N4.45 billion recorded in 2014.

Source: New Telegraph

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