Forte Oil Plc has reported impressive performance for the year ended December 31, 2017, showing a jump of 323 per cent in profit after tax (PAT). The company adopted cost reduction strategies that boosted its performance.
According to the results, Forte Oil Plc recorded revenue of N129.443 billion, showing a decrease of 12 percent from N148.605 billion in 2016.Cost of sales fell from N128.021 billion to N105.327 billion, making the company to close the year with a gross profit of N24.115 billion, up from N20.583 billion in 2016.
Forte Oil reduced its distribution expenses by 40 per cent from N3.016 billion to N1.796 billion, while administrative expenses stood at N10.119 billion, from N10.293 billion in 2016.
Finance income improved by 11 per cent to N2.096 billion to N1.888 billion, while net finance cost reduced by 15 per cent to N3.636 billion from N4.281 billion in 2016.
Profit before tax improved by 34 per cent from N5.340 billion to N10.627 billion. A reduction of 34 percent in income tax from N2.449 billion to N1.599 billion, made PAT to grow faster. Specifically, PAT soared by 323 per cent from N2.890 billion to N12.226 billion in 2017. Despite the high profit the board of directors did not recommend dividend payment.
Meanwhile, the equities market rebounded thursday as the All Share Index (ASI) appreciated by 0.31 per cent to close at 40,875.69. Similarly, market capitalisation added N45.5 billion to close at N14.77 trillion.
The appreciation recorded in the share prices of ETI, Dangote Cement, Zenith Bank, UBA, and Access Bank were mainly responsible for the positive performance.
Also, activity level improved as volume and value traded increased by 23.5 per cent and 13.3 per cent respectively to 495.6 million shares and N7.7 billion.
Prestige Assurance Plc led the price gainers with 9.3 per cent, followed by LASACO Assurance Plc. Transcorp Plc, May & Baker Nigeria Plc and Eterna Plc appreciated by 4.8 per cent, 4.6 per cent and 4.6 per cent respectively.
Conversely, Glaxosmithkline Consumer Nigeria Plc led the price losers with 9.6 per cent, trailed by Jaiz Bank Plc with 8.1 per cent. Japual Oil, International Breweries Plc and NPF Microfinance Bank Plc shed 7.5 per cent, 4.9 per cent and 4.7 per cent in that order.
In terms sectoral Sector performance four closed positively led by the NSE Industrial Goods Index with 0.6 per cent. The NSE Insurance Index trailed, closing 0.4 per cent higher, while the NSE Banking Index went up by 0.3 per cent. The NSE Oil & Gas Index appreciated by 0.1 per cent.