Forte Posts N7.9 Billion Half of Year Profit

• Forte Posts N7.9 Billion Half of Year Profit

Forte Oil Plc rebounded strongly following the surge in global oil prices and improved global economic outlook.

The company announced a profit after tax of N7.9 billion for the first half of the year, up from the N4.11 billion recorded a year before.

The unaudited results showed revenues surged by 32 percent during the first half of 2018 to N61.8 billion, up from N46.7 billion filed in the first half of 2017.

Earnings per share rose by 47 percent from the N1.05 recorded in the same period of 2017 to N1.54, while the total assets climbed from N147 billion to N153 billion.

According to the firm, the surged in global oil prices amid a stable operating environment helped Forte performance during the first half of 2018. Stable foreign exchange market and improved petroleum product supply across the nation deepened growth and strengthens its financial position.

The company stated 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 company further stated that the non-payment of subsidy, interest and forex differential impacted its operation, however, “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.”