Forte Oil Plc recorded a profit after tax of N5.79bn in 2015, representing a 30 per cent increase over the previous year.
The company, while announcing its financial results, described the release of the full-year audited result as a feat in the history of the Nigeria Stock Exchange as Forte Oil had set a precedence by filing an approved result ahead of the regulatory deadline.
It said the board of directors had also proposed a cash dividend of N3.45 per share of the company’s common stock, which would be paid to all shareholders upon the ratification of the proposal at its forthcoming Annual General Meeting.
The company’s revenue in 2015 fell to N124.62bn from N170.13bn in 2014, while profit before income tax increased by 16.7 per cent to N7.012bn, compared to N6.006bn recorded in 2014.
Its profit after income tax increased to N5.79bn, compared to N4.46bn in the same period in 2014, while earnings per share grew by 86.8 per cent to N4.11 compared to N2.20 in the same period in 2014.
The company said its revenue fell by 25 per cent from N122.6bn in the nine months of 2014 to N91.6bn in the same period last year as a result of reduced importation of petroleum products by the company due to prolonged delays by the government in making subsidies payment and a drop in pump prices.
This, it said, was further exacerbated by nationwide strikes by downstream sector workers.
The Group Chief Financial Officer, Forte Oil, Mr. Julius Omodayo-Owotuga, said, “The decline in revenue of 27 per cent was as a result of the company strategy to reduce importation of Premium Motor Spirit so as to reduce the company’s exposure to subsidy receivables from the Federal Government.
“Other income increased by 190 per cent due to sale of investment property, investment in securities held to maturity, freight income from the investment made in the 100 trucks of the previous financial year to mention a few.”
He said the company’s ability to provide a profit for its shareholders was testament to their belief that the business was on a solid and safe trajectory and will continue to consolidate on gains made.
Also commenting, the Group Chief Executive Officer, Mr. Akin Akinfemiwa, said, “This result in a testing economic climate which we operate, is the reward from the investments made by the company in its core business and its people. It also clearly demonstrates the resilience of our business.
“Furthermore, our vision to diversify into power generation has proved to be very successful not just in the near term, but in the long term and we see tremendous growth opportunities in that space.”
He attributed the group’s sustained superior performance to highly motivated and skilled employees as well as excellent customer service delivery across all business lines.
According to the statement, Forte Oil witnessed an increase in capacity utilisation at its 414 megawatts Geregu power plant from 105MW in the nine months of 2014 to 138 MW in the same period in 2015 (276MW as at December, 2015).
“The company’s growth in profits is attributable to the significant increase recorded in the sales of energy in the power generation segment as well as Premium Motor Spirit, Automotive Gas Oil, Aviation Turbine Kerosene and the production of chemicals; lubricants and greases.
Crude Oil Dips Slightly on Friday Amid Demand Concerns
On Friday, global crude oil prices experienced a slight dip, primarily attributed to mounting concerns surrounding demand despite signs of a tightening market.
Brent crude prices edged lower, nearing $83 per barrel, following a recent uptick of 1.6% over two consecutive sessions.
Similarly, West Texas Intermediate (WTI) crude hovered around $78 per barrel. Despite the dip, market indicators suggest a relatively robust market, with US crude inventories expanding less than anticipated in the previous week.
The oil market finds itself amidst a complex dynamic, balancing optimistic signals such as reduced OPEC+ output and heightened tensions in the Middle East against persistent worries about Chinese demand, particularly as the nation grapples with economic challenges.
This delicate equilibrium has led oil futures to mirror the oscillations of broader stock markets, underscoring the interconnectedness of global economic factors.
Analysts, including Michael Tran from RBC Capital Markets LLC, highlight the recurring theme of robust oil demand juxtaposed with concerning Chinese macroeconomic data, contributing to market volatility.
Also, recent attacks on commercial shipping in the Red Sea by Houthi militants have added a risk premium to oil futures, reflecting geopolitical uncertainties beyond immediate demand-supply dynamics.
While US crude inventories saw a slight rise, they remain below seasonal averages, indicating some resilience in the market despite prevailing uncertainties.
Nigeria’s Petrol Imports Decrease by 1 Billion Litres Following Subsidy Removal
Nigeria’s monthly petrol imports declined by approximately 1 billion litres following the fuel subsidy removal by President Bola Ahmed Tinubu, the National Bureau of Statistics (NBS) reported.
The NBS findings illuminate the tangible effects of this policy shift on the country’s petroleum importation dynamics.
Prior to the subsidy removal, the NBS report delineated a consistent pattern of petrol imports with quantities ranging between 1.91 billion and 2.29 billion litres from March to May 2023.
However, in the aftermath of Tinubu’s decision, the nation witnessed a notable downturn in petrol imports, with figures plummeting to 1.64 billion litres in June, the first post-subsidy month.
This downward trend persisted in subsequent months, with July recording a further reduction to 1.45 billion litres and August witnessing a significant decline to 1.09 billion litres.
August’s import figures represented a decrease of over 1 billion litres compared to the corresponding period in 2022.
The NBS report underscores the pivotal role of the subsidy removal in reshaping Nigeria’s petrol import landscape with the Nigerian National Petroleum Company emerging as the sole importer of fuel in the current scenario.
Despite higher petrol imports in the first half of 2023 compared to the previous year, the decline in June, July, and August underscores the profound impact of subsidy removal on import dynamics, affirming the NBS’s latest findings.
Nigeria’s Oil Rig Count Soars From 11 to 30, Says NUPRC CEO
The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Gbenga Komolafe, has announced a surge in the country’s oil rig count.
Komolafe disclosed that Nigeria’s oil rigs have escalated from 11 to 30, a substantial increase since 2011.
Attributing this surge to concerted efforts by NUPRC and other governmental stakeholders, Komolafe highlighted the importance of instilling confidence, certainty, and predictability in the oil and gas industry.
He explained the pivotal role of the recently implemented Petroleum Industry Act (PIA), which has spurred significant capital expenditure amounting to billions of dollars over the past two and a half years.
Speaking in Lagos after receiving The Sun Award, Komolafe underscored the effective discharge of NUPRC’s statutory mandate, which has contributed to the success stories witnessed in the sector.
The surge in Nigeria’s oil rig count signifies a tangible measure of vibrant activities within the upstream oil and gas sector, reflecting increased drilling activity and heightened industry dynamism.
Also, Komolafe noted that NUPRC has issued over 17 regulations aimed at enhancing certainty and predictability in industry operations, aligning with the objectives outlined in the PIA.
Billionaire Watch4 weeks ago
MacKenzie Scott Sells Off $10.4 Billion Worth of Amazon Shares
Naira4 weeks ago
Dollar to Naira Black Market Exchange Rate January 26th, 2024
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 1st, 2024
Company News3 weeks ago
UAC Posts N12.7 Billion Profit Before Tax in 2023
Forex3 weeks ago
Dollar to Naira Black Market Exchange Rate February 2nd, 2024
Banking Sector3 weeks ago
CBN Accuses Banks of Hoarding $5 Billion in Foreign Currencies
Education4 weeks ago
WAEC: Over 8,000 Candidates Register for First Series of Computer Based-WASSCE in Nigeria
Forex4 weeks ago
Dollar to Naira Black Market Exchange Rate January 30th, 2024