INVESTMENT HIGHLIGHT
9 Months 2015: Revenue down by 25.26%; Profit After Tax up by 6.69%
Forte Oil (or the “Company” or “FO”) Plc, an indigenous marketing
petroleum Company released its third quarter earnings for the period ended September
30, 2015 on the 16th of October 2015. The result showed a 25.26% decline in
sales revenue to ₦91.61
billion ($458.05mn) from ₦122.58 billion ($612.90mn) Year-on-Year (YoY) while profit after
tax (PAT) grew by 6.69% to ₦4.28 billion ($21.40mn) from ₦4.01 billion ($20.05mn) YoY. Gross
profit and operating profit declined by 2.37% and 12.10% YoY respectively while
net finance cost reduced by 74.44% YoY.
FO recorded an improved third quarter performance compared to the
second quarter as revenue and profit after tax grew by 8% and 0.36%
respectively quarter on quarter (QoQ).
Most recently, FO sold 17% ($200mn) equity stake to Mercuria
Energy Holdings SA, the world’s third largest independent energy trader and
asset operator, as part of its commitment towards expansion. Forte Oil Plc is a
well-placed player in the oil and gas downstream business, upstream services,
power generation and upstream exploration although more than 89% of its revenue
still comes from fuel sales.
We have adjusted for increased contribution of FO’s power business
and our analysis clearly shows the growth potentials inherent in FO as the
Company continues to make investment efforts to becoming Nigeria’s premier
integrated energy solution provider. With aggressive drive to compete in
upstream sector and power business, we have made a two year forecast which
reflects moderate growth in 2015 and an improved growth in 2016.
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https://drive.google.com/file/d/0B7bfqve2E3QrWmIxQ2pRMFhFYWs/view?usp=sharing
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