Forte Oil plc
From Benjamin A Ameh, Lagos
The investment in power sector as part of business growth strategy to diversify from its primary business of petroleum products marketing into related high margin business
The Nigerian Stock Exchange (NSE) announced December 31, 2013 the admission of Forte Oil PLC, (formerly AP PLC) Nigeria’s foremost indigenous major marketer of refined petroleum products and Transnational Corporation of Nigeria PLC have been enlisted into the NSE 30 Index, a league of the Exchange’s most capitalized stocks, thereby commencing the new year as one of the elite stocks in one of Africa’s most viable bourses.
The NSE in February 2009 began publishing a new index called the NSE 30 index in terms of market capitalization and liquidity with the primary objective of providing an investable benchmark to capture the performance of the Nigerian Stock market.
NSE stakeholders and analysts have attributed the two listed companies exemplary price appreciation and growth on the Exchange to the companies’ incremental performances in 2013 and their investments in the Nigeria’s power sector which may have been seen by many as the next nexus of growth in the Nigerian economy.
Furthermore, the Forte Oil plc have successfully acquired 414 megawatt Geregu Power Plant in Kogi State under the Federal Government-led privatization of public power assets, which seeking to carve a niche in the power generation sector while Transcorp acquired Ughelli Power in Delta State within the same period .
The Forte Oil Company embarked on a Transformation Programme two years ago targeting the investment in power sector as part of its business growth strategy to diversify from its primary business of petroleum products marketing into related high margin business such as upstream exploration and production, etc that would guarantee continued increase in shareholder value.
The forte oil plc Group declared N3.2bn Profit-Before-Tax In its 2013 in Third Quarter Results with 258% increase compared to N0.9 billion in 2012.
In the same vein, board of directors of the company has also declared a Profit-After-Tax of N2.7 billion in 2013 compared to N0.7 billion with increased 317% delivered same period in 2012, while revenue showed high performance of 29% growth to close at N92 billion as against N71billion recorded in 2012.
In Overall, Forte Oil PLC’s profitability outperformed its third quarter projection of N2.6 billion profits after tax, whilst the N92bn revenue recorded in Q3 2013 also surpassed the N78bn expected in the period under review, as the group pushed to regain market share.