Forte Oil plc (formerly African Petroleum plc) has released its audited 2012 IFRS compliant financial statements following the approval of the Nigerian Stock Exchange (NSE) which shows a return to profitability. On the trading floor of the Nigerian Stock Exchange, Forte Oil plc share price closed at N13.65.
The Group declared a profit before tax (PBT) of N1.15billion in 2012 compared to a loss of N19.95billion in 2011, indicating an increase of 106 percent. Profit after taxes also increased by 105 percent to N1.007billion from a loss after taxes of N19.54billion in the preceding year. The Group’s gross profit increased by 16.25percent from N8.73billion to N10.15billion as Gross profit margin increased from 7 percent to 11percent.
Operating expenses as a percentage of sales also dropped from 19.23 percent to 5percent. The company’s net cashflow from operating activities also rose from a huge negative balance of (N10.5billion) in 2011 to a positive net operating cashflow of N3.5billion, an indication of improved operational efficiency and cashflow management.
Akin Akinfemiwa, group chief executive officer, Forte Oil plc said that “2012 marked the beginning of the company’s 3-year transformation plan to a lean, talent-based and technology-driven organisation. In 2013 and beyond, we are positive that we shall consolidate on the gains of 2012 to achieve exceptional performance as we move towards our vision of becoming Africa’s number one energy solutions provider”
He added: “You may recall that Forte Oil plc in 2011 carried out a complete restructure of her business with the objective of transforming it into a lean, talent- based and technology-driven organisation that will be more responsive to the needs of its customers.
As part of its now improved operational efficiency; controls have improved across business lines, stronger corporate governance and compliance are being ensured at all levels as well as the introduction of the foremost business enterprise solution-SAP. The results released today, is an indication that the company has finally turned the corner towards full recovery.
Forte Oil plc believes its efforts will in no time; translate to strong market dominance and thereon strong and sustainable profitability and robust returns to our shareholders.”