HOW FORTE OIL IS BUILDING FORT 2017

Like most companies, Forte Oil PLC always needs a safe zone from which to guarantee profit for its investors. Call it profit fort if you like, the point is that it takes some casting and building each financial year.

In the case of Forte Oil, building such a zone for 2017 financial year is proving to be quite a task but it is being managed, says nine months unaudited results to September released recently.

The key challenges were 20% drop in core revenue to N96,887.4m; 57% decline in income other sources to N987.4m and 60.4% increase in finance charges to N5631m.

All of them were being handled well, says the figures. For example, core revenue drop became gross profit 9.11% increase to N16906.8m as cost of sale went down 24.3% to N79,980.5m.

Then this was fortified some more with 45.7% drop in distribution cost to N1394.2m; and 7.62% decrease in administration expenses to N6793.3m and 18.3% increase in finance income to N1509.7m.

But the end result is not cast iron and could do with more reshaping in the three months left in the financial year. The good news though was that from 20.3% decline in total income to N99384.5m, Forte Oil recorded only 0.85& decrease in profit before tax to N5585.5m.

In other words, in spite of the challenges, it made N5.62 profit on each N100 income within the period compared to N4.52 at the same time in 2016.

As a result, the books were looking healthier since working capital came to N3568.2m as against N145.8m deficit previously; borrowings reduced and overdraft dropped by 13.5% to N1667.6m.

FORTE OIL PLC. Nm, Nine months.
                               2017.           2016
Total income     99384.5.     124653.7
Core revenue.    96887.4.     121083.3
Cost of sale.      79980.5.     105887.9
Gross profit.      16906.8.       15495.4
Other income.        987.4.         2294.7
Administration.   6793.3.         7353.3
Finance income  1509.7.         1275.7
Finance cost        5631.0.         3509.6
Profit before tax  5585.5.         5633.1
Profit margin %.       5.62.            4.52
Working capital.  3568.2.       (145.8)


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