Forte Oil records 14.3% increase in PAT to N3.39bn in Q1

Moptolani Oseni

Forte Oil Plc has reported an increase of 14.3 per cent profit in its unaudited group financial statements for the period ended March 31, 2019, to N3.39 billion from N2.96 billion reported in the first quarter (Q1) in 2018.

A leading player in the downstream sector recorded a 50 per cent increase in the group revenue from N28.4 billion in Q1 2018 to N42.6 billion posted in Q1 2019.

This was driven by a 48.9 per cent increase in the Fuels business (white products & ATK) to N38.5 billion and a 21.1 per cent rise in its Lubricants & greases business to N4.2 billion.

The group’s gross profit increased by 22.2 per cent from N2.51 billion in the first quarter, 2018 to N3.06 billion in Q1, 2019 despite cost pressures arising from Cost of sales which rose by 52.7 per cent to N39.5 billion in Q1, 2019 from N25.9 billion in Q1,2018.

Furthermore, earnings per share declined by 68.1 per cent, to 13 kobo in Q1 2019 from 41 kobo in erstwhile Q1 2018.

The EPS declared by the Group was based on Total Profit after tax to ordinary shareholders only which declined by 68.12 per cent to N172.1 million in Q1 2019.

However, The Board of Directors has proposed a special dividend of N1.15 per share from the proceeds of the divestments of the subsidiaries of the company to its shareholders.