Forte Oil weakens out on early filers list
Trends in the global and Nigerian economic environment may have had its toll on Forte Oil Nigeria Plc, hitherto first filer of audited financial statements, as it loses the exalted position.
For the past five successive years, Forte Oil Nigeria Plc has maintained the first position on the early filers list of the Nigerian Stock Exchange (NSE), this may no longer be the same as things appeared to have changed for the firm.
Early filers are companies that file their interim financial statements at least two weeks before the due date and Audited financial statements at least four weeks before the due date.
Quoted companies on the Exchange are required to file their financial statements on a timely basis in accordance with Appendix iii of the Listing Rules.
The Exchange on Schedule 1 of its x-compliance portal, identified the companies listed as companies that have exceeded the minimum listing standards in terms of timely disclosure of their Annual Audited and quarterly financial performance.
Forte Oil for the second consecutive year, maintained lead as the worst performing stock on the Nigerian Stock Exchange (NSE) in 2017, in terms of equity pricing.
The stock opened trading in 2017 at N84.43, and closed the year at N43.48 per share, reflecting about 50 per cent decline in equity pricing.
The descent was sustained from its 2016 performance when it lost 74.42 per cent, also the worst performer for the year.
The stock, which opened trading in 2016 at N330, depreciated by 74.42 per cent to close trading at N84.43 per share.
Forte’s 2017 third quarter result for the period ended September 30, showed that market decline in revenue which significantly impacted the bottom-line, ostensibly caused by a 41 per cent reduction in its Fuels business, which involves sales & distribution of petroleum products and ATK to its clients.
The result further showed that Pre-tax profit weakened by 0.8 per cent due to the 84.5 per cent expansion in net finance cost.
However, Profit after tax received a boost, a growth of 81.4 per cent, driven by corresponding dip an 82% dip in tax paid.
In Q3 2017, the company’s EPS stood at 50K compared to ₦2.27k in 2016, which reflects a 78% decline, irrespective of huge increase in PAT. This occurred as 87.1 per cent from the total profit realized was returned to non-controlling interest holders.
For the year ended 31 December 2017, Nigeria Breweries Plc made history as the first company to deliver to the Nigerian Stock Exchange (NSE) its audited year result.
However, NB submitted the result on February 15th 2018, barely 45 days before the expiration of deadline for timely result submission, the position hitherto held over many years by Forte Oil Plc.
Bonny Amadi
