By PETER EGWUATU & NKIRUKA NNOROM
Forte Oil Plc has recorded an increase of 152 per cent in Profit before income tax for the first six months ended June 30th , 2014, from N1.66billion in the corresponding period of 2013 to N4.19 billion. Other performance indicator shows that revenue grew by 33 per cent to N79.61 billion compared to N59.96 billion recorded in the same period in 2013.
The company in a statement stated that the successful launch of newly repackaged lubricants and aggressive consumer engagement activities boosted market share.
Other factors that boosted market share include : Continued expansion in the company’s retail network at strategic locations to improve market dominance; Aggressive growth and expansion of its industrial/commercial customer base to meet its objective of being the supplier of choice; Strong performance from Geregu Power Plant despite operational challenges.
Consequently, Forte Oil achieved a 111.05 per cent Year To Date, YTD share price appreciation in the first half from N92.87 to N206.30.
The company further noted that its traditional product lines continued 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 per cent 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 commenting, the Group Chief Executive Officer, Forte Oil PLC, Akin Akinfemiwa said; “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.