By Alex C
Forte Oil plc, a Nigerian gasoline retailer, thinking to invest copiously in the power sector may have paid off as half year profit soars, analysis of the financial statement reveals.
For the first six months of the year, Forte Oil’s pre-tax profit rose by 152 percent to N4.19 billion from N1.66 billion the same period of the corresponding year 2Q13, while sales surged by 33 percent to N79.60 billion.
Profit after tax (PAT) followed the same growth trajectory as it also surged by 125 percent to N3.13 billion, compared with N1.39 billion as of HY 2013. The company has been the best performer among the quoted firms operating at the downstream oil and gas sector as independent oil marketer since overcoming the oil subsidy gloom.
This is a remarkable performance for a company that made a N19 billion loss in 2011.
It is also the best performer on the Nigerian Stock Exchange All Share Index year to date. This validates its consistent profit growth. Forte will started operating the 414-megawatt Geregu Power Station in central Nigeria last year.
The company will ensure adequate gas supply to run the site at full capacity, up from 60 percent, according a statement released by the company last year.
President Goodluck Jonathan handed control of 14 power plants to buyers, including Forte Oil and Siemens AG in September 2013, to secure funding for the facilities and end frequent blackouts.
Forte is also studying possible oilfield investments as well as ownership of a refining and petrochemicals plant, to diversify in the energy industry and expand in West Africa. Total assets were up by 16 percent to N121.36 billion in HY 2014, as against N104.67 billion as of HY 2013.