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Forte Oil profit down 50 percent in 2016

Forte

Forte Oil Plc has reported N2.9 billion net profit for 2016, exactly half its achievement in 2015.

Profit before tax also slipped 24 percent to N5.3 billion in 2016 as against N7 billion recorded in 2015.

The company’s revenue for the period under review was N148.6 billion, up 19 percent from N124.6 billion previously.

 

The drop in profitability was due to exchange rate volatility which caused 20 percent increase in finance cost that moved from N5.1 billion in 2015 to N6.2 billion in 2016.

 

Forte Oil’s cost of sales rose by 21 percent from N106 billion to N128 billion to leverage 11.5 percent increase in gross profit from N18.4 billion in 2015 to N20.6 billion in 2016.

 

 

As at the time filing this report, the company has not announced dividend payment to shareholders. In 2015 financial year, Forte Oil Plc declared N3.45 dividend to shareholders.

 

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Ihesiulo Grace

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