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Forte Oil declares N1.1bn profit

Forte Oil declares N1.1bn profit

Forte Oil Plc has released its unaudited results for the first quarter of 2014, declaring a profit after tax of N1.1bn.

The figure represents a 108 per cent increase on the N530m it reported for the corresponding period of 2013.

The result showed, among other things, that the company’s revenue rose by 31 per cent to N34.8bn in the period under review, up from N26.6bn in the corresponding period of 2013.

Also, its gross margin of N4.6bn reflected a 72 per cent increase on the N2.7bn recorded in the three-month period ended March 31, 2013, while the profit before income tax increased by 101 per cent to N1.26bn from N633m in the corresponding quarter of last year.

In a statement following the release of the result, Forte Oil said the highlights of its operations in the review period included the achievement of a year-to-date growth of 37.67 per cent in share price. Its share price rose from N92.87 to N148.99.

The company also said that in the review period, it successfully inaugurated repackaged lubricants and implemented aggressive consumer engagement activities to boost its market share.

Another factor, which contributed to the company’s performance, according to the statement, is the continued expansion in its retail network at strategic locations.

The firm added that it also focused on “aggressive growth and expansion of the industrial/commercial customer base to meet the objective of being the supplier of choice.”

Forte Oil had taken over the management of Geregu Power Plant on November 1, 2013 after it successfully acquired majority stake in the 414 power generation plant located in Kogi State under the power sector privatisation programme.

According to the company, the strong performance of the Geregu Power Plant despite operational challenges is a major factor in its first quarter result.

The energy company attributed its revenue growth to increase in the sale of fuels such as Premium Motor Spirit, Automotive Gas Oil and aviation fuel.

“Power generation also contributed 7.42 per cent and 44.13 per cent to the group’s revenue and profit-after-tax, respectively, as Forte Oil’s diversification strategy continues to yield positive income streams,” it added.

The company, which operates over 500 retail outlets in the downstream sector of the country’s oil and gas industry, explained that it had diversified its downstream operations into related energy businesses in line with its vision of becoming the country’s leading integrated energy group.

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