Forte Oil, on Wednesday presented its unaudited financials for the 9-month ended September 30, 2018, with cost of sales rising faster than turnover, while finance income slowed down by 33.49%; following which the company only managed to keep head afloat, from a loss in the corresponding period of 2017.
Revenue for the period climbed to N94.812bn, from N68.031bn; and cost of sales increased by 42.4% from N60.642bn, to N86.354bn.
A breakdown of the revenue and cost of sales showed that the biggest contribution to revenue and cost came from sale of fuels through the company’s outlets spread across the country, which amounted to N86.674bn and N80.14bn, up from N60.819bn and N54.662bn respectively in the corresponding period of 2017. It was followed by power generation, which dropped from N26.455bn in the first nine months of 2017 and N14.96bn, to N24.399bn and N16.715bn. Lubricants and greases yielded N10.106bn revenue and N8.097bn cost, as against N9.085bn and N7.75bn respectively in the prior nine-month; just as revenue and cost of producing chemicals amounted to N2.027bn and N851.36m, from N1.527bn; while a new line item, “solar system,” contributed N125.56m, costing N104.215m.
Gross profit for the period stood at N18.978bn, up from N16.906bn.
Other income rose 94.52% up from N587.53m to N1.142bn, driven by the N386.219m freight income, which rose significantly from N178.886m; while throughput income (being revenue from storage of products for the Pipeline and Petroleum Marketing Company and other petroleum marketers in its Apapa, Lagos tank farm) rose to N343.138m, from N133.118m. A total of N138.642m income was derived from investment property rental, up from N144.146m; and N112.916m earned from foreign exchange gains, as against the N112.915m in 2017; among others.
Distribution expense climbed 26.98% up from N1.302bn to N1.653bn; administrative expenses increased to N5.386bn from N5.236bn.
Finance income suffered a 33.49% drop from N1.116bn in 2017, to N742.51m; while cost dropped to N2.927bn, from N3.028bn; as profit before tax stood at N375.89m, up by 179.2% when compared to the preceding loss of N474.61m. After tax profit stood at N78.73m, translating to Earnings Per Share of N1.72; as against the N626.06m loss