Forte Oil 3 Months 2017 Financial Summary

3 Months Report FORTE OIL PLC
	2017 N'000	2016 N'000	change	Year End
Revenue	33,003,968	35,602,141	-7%	December
Profit/Loss before taxation	2,049,755	1,301,476	57%
Profit/Loss for the period	1,884,497	954,242	97%
Issued Shares (Units)	1,302,481,103	1,302,481,103
Basic Earnings Per Shares (Kobo)	54.00	51.00	6%
Last total dividend paid (Kobo)	0.00	0.00	#DIV/0!

Forte oil Plc released its Q1 result for 2017 with the following major highlights.

The power generation showed remarkable growth as it grew from #2.9billion to #6.5billion which represented a 124.14% growth. Production chemical contribution to earnings remains relatively stable while lubricant and greases grew by 52.38% from #2.1billion to #3.2Billion. Fuel on the other hand had a dismal outing, as it declined by 24.14% from #29.9billion to #22.8billion.

A closer look at the result shows that the company gained 3018.75% in terms of forex . this implies the company gained #499million within the period under review.

On the side of finances, we observe that the effect of the recent bond of #9billion at 17.5% for 5years issue by the company resulted in #417million being set aside for coupon payment. while loan and overdraft interest expense increased by 13.33% from #1.5billion to #1,7billion.

The income tax declined by 52.45% from #342million to #165million with an effective tax rate of 8% against 27% same period in 2016.

We hope the Market see positive in this result and price Forte oil better than it had done since the turn of 2017. 

With this result the future of FO will now depend on its power plant and the

profitability of its lubricant and grease business as the fuel business will gradually become less profitable with the removal of fuel subsidy.

The Market would make its bet no doubt.