FORTE OIL NIGERIS PLC: AT TIMES LIKE THIS

At times like this in Nigeria when depression hovers, says the Central Bank of Nigeria, help from any where is welcome. That of course is one testimony Forte Oil Nigeria PLC can comfortably give today based on interim figures for the half year to June 2015.
According to the brief released to the stock market recently, Forte Oil by June recorded a positive net financial cost of N494.9m compared to a  net loss of N338m at the same time in 2014.
This turned out to be manna of a kind. This 246.4 per cent recovery added to 111.1 per cent increase in Other Income to N1573.7m to help the company cushion hard to bear operational cost pressure.
This came principally from 75.9 per cent rise in administration costs to N5939.1m.
This was at a time turnover dropped by 23.2 per cent to N61168m from June 2014's N78606.8m. A drop which accompanied by a higher 25 per cent increase in cost of sales and distribution expenses that refused to also go down as fast as turnover reduced. It dropped by only 12.7 per cent.
Given the helping hand offered by finance cost net gain, however, Forte Oil ended the half year with 5.32 per cent profit margin ( gain on each N100 sale) compared to 5.27 per cent previously.
IN OTHER WORDS:
* Forte Oil may barely end the current year with higher margins come December 2015 if the situation remains the same.
* Of course, a resolve to tackle the cost pressure discernible all round, could make a great difference. 

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