Forte Oil 2016 Report

The 2016 Financial Year End Report of Forte Oil Plc. 

The above table summarizes all the activities of FO for the Financial year 2016. Looking at the performance quarter on quarter, from the first quarter to the very last.   FO generated a total of N35,602,141,000 billion in Q1 followed by a strong Q2 with N48,820,565,000 billion  then a dramatic decline in Q3 with N36,660,578,000 and dismal Q4 with N27,521,977,000 all in revenue.

The PAT follows the same pattern, which started with a Q1 of N954,242,000 followed up with an impressive N1,493,172,000, a dismal Q3 with N349,416,000 and N129,637,000 in Q4.

The below par performance can be summarized into 3 main factors:

• Declining interest income
• Increasing interest expense and  
• Increasing Tax expenses 

My take on the above are, the free money from subsidy is not coming in as before which would have augmented interest income and compensate for the increased interest expense. The sudden increase in tax expense may not be far from the drive of Federal inland revenue (FIR) to rake in tax for the government.

FO will remain volatile until the Market finds an equilibrium price for it considering the information available in the public domain.