By Nkiruka Nnorom
LAGOS—Forte Oil Plc has recorded 128.9 per cent increase in its profit after tax, PAT, for the first quarter ended March 31, 2017.
The Q1 financial result of the company for the period released on the floor of the Nigerian Stock Exchange, NSE, showed that the PAT rose to N1.88 billion in Q1, 2017 compared to N954.24 million achieved in the equivalent period in 2016.
Similarly, the profit before tax, PBT, increased by 57.5 per cent from N1.30 billion in 2016 to N2.05 billion in 2017.
This comes as the company’s cost of sales and distribution expenses witnessed significant improvement within during the quarter.
The company’s cost of sales declined by 11.7 per cent from N30.79 billion in Q1 2016 to N27.20 billion within the period under review, while the distribution expenses decreased to N501.52 million from N911.55 million in quarter one in 2016.
However, the revenue fell by marginal 7.3 per cent to N33.93 billion in the review period from N35.60 billion in Q1 2016.
Other highlights of the result showed huge increase in the finance cost as the company spent N2.14 billion in servicing loans in 2017 as against N1.52 billion spent in the same period in 2016, representing 40.9 per cent increase. The administrative expenses rose marginally by 4.6 per cent from N2.22 billion in 2016 to N2.32 billion in the review period.