The board of Forte Oil Plc, on Monday presented its unaudited financials for the first quarter ended March 31, 2018, indicating that profit before and after tax rose at a faster pace than revenue for the period, helped by fuel retailing, power segments.
According to the result, revenue increased by 20.63% from N33bn in the corresponding period of 2017, to N39.811bn, with retailing of fuels remaining its golden egg, after contributing N2.5848bn to revenue, up from N22.765bn in the first quarter of 2017. It was followed by power generation with N10.071bn, up from N6.532bn; and N3.453bn from lubricants and greases, compared to N3.237bn, while production chemicals and solar system remained small segments of the business.
Cost of sales increased by 21.35% to N33bn, from N27.2bn, with fuels gulping all of N23.989bn from N20.142bn; ahead of N6.009bn from power generation (4.164bn in 2017); and N2.764bn from lubricants and greases, up from N2.645bn. These left gross profit of N6.802bn, up by 17.22% from N5.803bn.
Other income suffered a sharp 54.12% decline to N297.282m from N647.896m, with the bulk of N157.848m, being freight income on 100 trucks owned by the company and managed by various logistic companies, compared to N61.668m; followed by dividend received of N90m from Forte Upstream Services Limited, one of its subsidiaries (nil in 2017Q1); ahead of the N53.113m foreign exchange gain from sale of US$ inflows, which represented a significant slide from N499.877m in 2017.
Distribution expenses rose to N593.848m, representing an 18.41% rise over the N501.521m in the prior Q1; administrative expenses crawled 8.46% up from N2.322bn to N2.126bn; resulting in operating profit of N4.379bn, which represented a 20.76% improvement over the N3.626bn reported in the corresponding period of 2017.
Finance income was flat at N533.682m, as against the previous N563.586m, out of which interest income on bank deposits rose to N221.602m from N214.034m; other income fell from N236.044m to N198.572m, while income from government grant on loan stood at N113.508m.
Finance cost dropped to N1.747bn from N2.14bn, with interest on medium term bond rising slightly to N422.247m from N417.239m; interest expense on bank loans and overdrafts was the bulk at N1.325bn, a drop from N1.723bn; leaving net finance cost of N1.214bn, a 23.02% drop from N1.577bn.
Profit before tax stood at N3.165bn from N2.049bn. A tax expense of N202.917m, up by 22.79% from N165.258m in the 2017Q1, left profit after tax at N2.962bn, as against the previous N1.884bn; translating to Earnings Per Share of 41 kobo, a 24% drop from the previous 54 kobo.