Petroleum products marketing and electricity generation giant- Forte Oil Plc, on Tuesday presented its audited full-year score-card ended December 31, 2016 showing that operating cost grew at a faster pace than profit.
Specifically, turnover for the period rose by N23.988 billion or 19.24% to N148.605bn, as against previous year’s N124.617 billion.
Cost of sales jumped to N128.021bn, up by N21.766bn or 20.48% from N106.255bn; leaving a gross profit of N20.583bn, slightly better than N18.361bn reported for the corresponding period of 2015.
‘Other income fell also by almost half from N4.05bn in 2015 to N2.347bn; distribution expenses rose from N2.754bn to N3.015bn; while the company successfully contained administrative expenses at N10.293bn from N10.969bn; following which operating profit rose slightly to N9.622bn from N8.688bn.
Finance income fell to N1.887bn from N3.47bn, far less than the N6.169bn cost, compared to the previous N5.145bn, as a result of which net loss soared to N4.281bn from N1.675bn
Profit before tax dropped to N5.34bn from N7.012bn, while income tax expense rose to N2.449bn from N1.218bn.
This left profit after tax at N2.89bn, N2.904bn or 50.12% down from the N5.794bn reported for the 2015 financial year, which translates to Earnings Per Share of N1.99, down from the previous N4.13 per share.
The board is however yet to recommend dividend payment for consideration by shareholders at the next annual general meeting to consider the account.