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In recognition of its prowess in the downstream sector in the domestic economy, Forte Oil Plc has exclusively obtained the right to distribute Chevron’s Havoline Motor Oil.
The company made this disclosure to the Nigerian Stock Exchange (NSE) on Tuesday, even as marketing of the product is expected to commence from 25th April 2018 and officially launched on 10 May, 2018.
Havoline motor oil is a premium automotive motor oil with Deposit Shield® Technology that protects against deposit and sludge formation and provides excellent wear protection of critical engine parts.
Forte Oil recently posted an impressive growth in its profit before tax to N10.6 billion in the financial year ended December 31, 2017.
The audited results showed that profit before tax grew by 99 per cent to N10.627 billion from N5.34 billion in the corresponding period of 2016. Also, profit after tax rose from N2.89 billion in 2016 to N12.23 billion in 2017 due to a tax credit of N1.6 billion, while earnings per share rose to N2.89 from N1.99 in 2016.
In all, Forte Oil recorded a revenue of N129.44 billion, down 12.9 per cent from N148.61 billion. Cost of sales was reduced by 17.7 per cent from N128.02 billion to N105.33 billion, while distribution expenses was reduced by 40.4 per cent from N3.02 million to N1.8 billion, leading to a growth of 17.2 per cent in gross profit to N24.12 billion, from N20.58 billion in 2015.
Administrative expenses declined to N10.12 billion, from N10.26 billion, net finance cost went down to N5.73 billion from N6.17 billion. In bid to reduce its finance cost last, Forte Oil Plc in 2016 raised N9 billion bond under its N50 billion bond issuance programme, to refinance existing short term commercial bank loan obligations. The funds were also meant to refinance its retail outlet expansion.
Group chief executive officer, Forte Oil, Mr. Akin Akinfemiwa said “with the raising of this initial capital which has been fully underwritten shows the confidence the investing public has in Forte Oil Plc as an investment of choice.
“This bond programme being the first in the downstream sector, is testament to Forte’s position within the downstream sector and allows the company to actualise the vision of the Board to continue to provide value to its shareholders regardless of the economic climate” he said.
