Despite the challenging operating business environment, especially in the oil and gas industry, Forte Oil has expressed confidence to meet its N11 billion target Profit Before Tax by the end of 2016 financial year.
During the indigenous oil company’s Facts Behind the Figures at the Nigerian Stock Exchange (NSE) on Monday, the Group Chief Executive Officer, Forte Oil Plc, Mr Akin Akinfemiwa, remained optimistic that that the company is well positioned to meet and exceed the 2016 targets of N11 billion naira, having presently achieved six billion naira in the first half.
Giving the H1:2016 operational highlights, Akinfemiwa explained that Forte Oil maintained it’s 14 per cent market share among the major marketers in the White Products segment of the downstream sector, attributed to the company’s ongoing strategic retail network expansion and growth of commercial and lubricants customer base.
Specifically, the noted that revenue from lubricants increased by 63 per cent N5.2 billion in H1:2016 against N3.2 billion recorded in H1:2015, while that of LPG increased by 84 per cent at N234 million.
On the income statement, forte Oil GCEO explained that as a result of ongoing strategic retail acquisitions across the country, increase in pump price of PMS and increased commercial customer base for both fuel and lubricants, the company’s revenue grew by 38 per cent from N61.1 billion in H1:2015 to N84.4 billion in H1:2016.
Profit before Tax increased by 31 per cent to N4.3 billion compared to N2.5 billion in H1.2015, while gross margin grew by 48 per cent at N12.3 billion in H1:2016.
Going forward, Akinfemiwa promised that the company would improve on its operating margins by deepening it’s focus on high margin product as it increases lubes and throughput per station, while fully exploiting LPG business.
He added that to ensure investors optimal benefits, the company would diversify it’s revenue base, strengthen it’s balance sheet, optimise distribution channels, as well as pursue a focused merger and acquisition strategy.