Forte oil Plc’s PBT hits152% increase in H1 2014’s results

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Forte Oil Tanks Farm

From Benjamin A Ameh, Lagos

Successful launch of newly repackaged lubricants and aggressive consumer engagement activities has impacted greatly on market share.

Forte Oil PLC (formerly AP PLC) Nigeria’s foremost energy group has announced its audited results for the six months period ended June30, 2014 with the following:

Major Financial Performances Highlights: 

The Profit before income tax increased to 152% representing N4.19 billion compared to N1.66 billion recorded in H1 2013 while the Revenue follow the growth pattern to hits 33%  representing N79.61 billion as against N59.96 billion recorded in the same period in 2013

The management of the company has promised to continued with expansion in the retail network at strategic locations to improve market dominance while stressing also the needs for aggressive growth and expansion of its industrial and commercial customer base to meet its objective of being the supplier of choice noting that there is strong performance from Geregu Power Plant despite operational challenges.

It was further revealed that the Achievement of 111.05% Year To Date share price appreciation in H1 from N92.87 to N206.30 has bought its inclusion in the Morgan Stanley Capital International (MSCI) Frontier Market Index, one of the world’s leading equity index provider and the Nigerian Stock Exchange’s league of ‘Highly Priced Stock’.

“The company’s traditional product lines continue to boost revenue with increase sales recorded in fuels, such as Premium Motor Spirit (PMS; petrol), Automotive Gas Oil (AGO; diesel) and Aviation Fuel. Power generation and provision of Upstream Services also contributed significantly to the group’s revenue and profit as Forte Oil’s diversification strategy continues to yield positive income streams.”

According to the Group Chief Financial Officer, Forte Oil PLC, Julius Omodayo-Owotuga, “Achieving 152% growth in profitability in our third year of transformation is a clear indication that the milestones set in our restructure programme are being met earlier than envisaged. Revenue increased by 33% from a growing number of retail outlets and improved commercial customer base, while keeping our costs; distribution, administrative, and finance low. The result is an indication that we are operating efficiently and are focused on our vision of being the foremost energy solutions provider.”

Also speaking on the performances under review period, is the Group Chief Executive Officer of the company, Akin Akinfemiwa, in his words, “We are very pleased with our audited H1 results for 2014, which exhibits consistent and sustainable growth for both revenue and profits.  This performance is an affirmation of the resilience of our businesses and a true test of our business transformation strategy despite the adverse impact of petroleum product scarcity experienced in the first quarter of the year. Superior contributions from our power and upstream services divisions continue to strengthen our market dominance in our quest to be the foremost energy solutions provider. As we enter the final phase of our business transformation we are confident of building a long term successful company and making Forte Oil PLC the investment of choice through positive actions that boost investor confidence at all times.”

About Forte Oil PLC

Forte Oil PLC is Nigeria’s foremost energy group with interests in downstream petroleum operations, power generation and upstream petroleum services. It is headquartered in Lagos, Nigeria, with extended operations in Ghana. The company aims to become the foremost Integrated Energy Solutions Provider in Nigeria, built on the pillars of solid corporate governance, sound business ethics and compliance, enhanced Safety, Health and Environment Practices; driven by technology, world-class business process and highly skilled and motivated workforce.

Forte Oil PLC operates over 500 retail outlets in the downstream sector of Nigeria’s Oil and Gas industry, offering a wide range of petroleum products; Premium Motor Spirits (PMS), diesel, aviation fuel, kerosene, as well as a range of quality lubricants for various automobiles and machines. Its petroleum and lubricant products are distributed mostly to the automobile, industrial, aviation and marine markets, whilst the company is in alliance with leading brands to provide unparalleled shopping experience at its retail outlets to its various customers.

In line with its vision of becoming Nigeria’s leading integrated energy group, Forte Oil diversified its downstream operations into related energy businesses that include a subsidiary which specializes in the supply of Well Production Chemicals and Drilling/Completion Fluids to the upstream petroleum sector.

In consonance with the diversification strategy, Forte Oil PLC established Amperion Power Distribution Company Limited – with the State Grid Corporation of China as technical partners, the world’s largest power company – to herald its foray into the power sector. Amperion Power successfully acquired the 414MW Geregu Power Plant, located in Kogi State, Nigeria under the recent federal government-led privatization programme in the power sector. The company is poised to carve a niche in the power generation sub-sector by using this as leverage for future opportunities as part of its commitment to bridge the current power deficit in Nigeria.


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