FORTE Oil Nigeria Plc has announced plans to deepen focus on high margin products such as lubricants, increase lubes and throughput per station as it recorded a substantial decline in key performance indicators in its recently released half year results.
The energy firm recorded a 23 percent decrease in revenue from N79.6 billion to N61.2 billion as its operating expenses increased by 45 percent from N4.4 billion in H1 2014 to N6.4 billion in H1 2015
A profit before tax of N3.3 billion was recorded for the six month ended June 30, a 22 percent decline from the N4.2 billion recorded for the same period of 2014. Similarly, profit after tax for the reviewed period also recorded a decline of 19 percent from N3.1 billion recorded for H1 2014 as against the N2.5 billion recorded H1 2015.
The company’s balance sheet size indicated a weak financing that positioned its total assets down by 16 percent from N139.3 billion for the H1 2014 to N117.5 billion for the same period of 2015.
Speaking on the second half outlook for the year 2015, at the company’s Facts Behind the Figure in Lagos, the Group Managing Director, Mr. Akin Akinfemiwa, said Forte Oil will deepen focus on high margin products such as lubricants, increase lubes and throughput per station.
According to him, Geregu Power Plant asset will be expanded and diversified into the upstream space through profitable acquisition of upstream assets and a full exploit of the LPG business, particularly LPG retailing and bottle refilling.
Others, he said, include to harness partnerships with quick service restaurants, financial institutions and telecommunication firms and increase footfall to stations.
He stressed that the company will optimise opportunities from real estate assets to grow complimentary businesses to enhance the bottom-line, achieve optimal term structures for loans. Longer term loans and injection of capital to shore up working capital in order to strengthen its balance sheets.
He added that the company will optimise distribution channels by focusing on retail network optimisation and strategic expansion through acquisition of prime retail sites, growth of profitable commercial customer base through the provision of tailor made energy solutions and expand network of partnerships with blue chip businesses.
However, the Chief Executive Officer of the Nigerian Stock Exchange, Mr. Oscar Onyema, said the company is one of the leading forces in the oil and gas sector of the market and continued to strive to achieve the highest standard of corporate governance by ensuring ongoing compliance with the exchange’s post-listing requirements including prompt filing of its financials.
“We believe these have helped to boost investor confidence, as well as repositioned companies listed on the Exchange as attractive investment targets,” he said.
He urged the company to strive toward improving its existing high standard of corporate governance, accountability and disclosure.

READ ALSO  ‘Partnership to export vegetables will boost economy’