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Forte oil grows 9m profits by 317%, fueled by reduction in finance cost

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ABUJA – Forte Oil PLC (formerly African Petroleum) is a public liability company listed on the Nigerian Stock Exchange (NSE) and a foremost indigenous major marketer of refined petroleum products a strong presence in the thirty-six states of Nigeria and the Federal Capital Territory (FCT), Abuja.

Forte Oil, a company with appetite for expansion and market penetration has recently diversified its operations into the power sector when it acquired the 414 megawatts Geregu Power Plant.

Forte Oil Plc’s foreign business partner BP South Africa is the third largest company in South Africa, with about 790 BP branded service stations, technical business partners, 26 depots and other distribution sites including three coastal installations.

Forte oilForte Oil operates in Ghana and plans to expand in Liberia and Sierra Leone within the next three years- the Company had 1.08 billion shares outstanding, with a shareholder’s funds standing at N10.52 billion as at 30th September 2013.

Forte Oil Plc third quarter revenue gross revenue grew by 29 percent to N92.13billion for the period ended September 2013, compared with N71.43billion recorded in the corresponding period 2012.

Profit before tax (PBT) for the nine months through September 2013 rose to its highest level in two years as it increased by 258 percent to N3.22 billion as compared with N898.33million recorded as at third quarter September (Q3) ,2012.

The company’s pre-tax profits spiked because of a robust cash flow as a result of steady subsidy payments which enabled it pay part of the debts owed to banks. The positive effect was a reduction in finance costs by 49.33 percent to N720.1million compared with a year earlier.

Administrative and Distribution expenses of Forte Oil were up 2.97 percent to N6.53 billion for the period ended September 2013 as compared with 6.33 percent recorded in Q3 2012.

Forte Oil Profit after tax rose by 317 percent to N2.73 billion or 254kobo per share in the third quarter, from N656.4million or 61kobo per share for the corresponding period of 2012.

The company has effectively utilised its resources in the interest of shareholders as return on equity (ROE) and return on assets (ROI) increased considerably.

Forte Oil’s Return on Equity (ROE) for the nine months through September 2013 climbed to 26 percent as compared with 9 percent recorded in 2012, while return on assets also increased to 4 percent from 2 percent in the corresponding period of 2012.

Property, Plant and Equipment which makes up 44.4 percent of the company’s total-noncurrent assets shrank by 4.53 percent to N8.56 billion in the period ended September 2013 from N8.97 billion recorded as at year end 2012.

Forte Oil Plc’s total assets grew by 56.1 percent to N64.85 billion for the period ended September 2013, as against N41.66 billion recorded in December 2012.

The company is the best performer on the Nigerian Stock Exchange All-Share Index this year, jumping more than eightfold, compared with a 33 percent gain for the index as a whole.

The company’s shares have risen 1143 percent year to date to close at N115.64 as at November 12, 2013.

Fort oil had a market capitalization of N124.9 billion as at November 12, 2013, while the company price to sales ratio -this is the price investors are willing to pay for its sales- stood at 1.37.

– BUSINESS DAY

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Oil

FG Introduces New Incentives To Revitalize Nigeria’s Oil & Gas Industry

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In a strategic move to revitalize Nigeria’s oil and gas sector, the Federal Government has unveiled two key fiscal incentives aimed at attracting investment and enhancing energy security.

The announcement was made by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy on Wednesday.

The first initiative, the Value Added Tax (VAT) Modification Order 2024, introduces critical exemptions for essential energy products and infrastructure, including Diesel, Feed Gas, Liquefied Petroleum Gas (LPG), Compressed Natural Gas (CNG), Electric Vehicles, Liquefied Natural Gas (LNG) infrastructure, and Clean Cooking Equipment.

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These exemptions are designed to reduce living costs for Nigerians, promote energy security, and accelerate the transition to cleaner energy alternatives.

The second initiative, the Notice of Tax Incentives for Deep Offshore Oil & Gas Production, offers new tax relief options for deep offshore exploration projects.

This measure aims to position Nigeria’s deep offshore basin as a premier destination for international oil and gas investments, boosting the country’s appeal to foreign investors.

These reforms are part of a broader set of policy initiatives, known as Policy Directives 40-42, endorsed by President Bola Ahmed Tinubu.

The directives reflect the administration’s commitment to fostering sustainable development in the energy sector and enhancing Nigeria’s competitive edge in the global oil and gas market.

 

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Tinubu set to approve ExxonMobil-Seplat oil deal, expands CNG bus initiative

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By Yemie Adeoye

NIGERIA’s President Bola Tinubu has announced that the protracted ExxonMobil-Seplat upstream oil divestment will be formally approved by the Minister of petroleum within a matter of days, just as he announced his government’s intention to expand the Compress natural Gas, CNG buses initiative.

The President who stated this during his Independence day nationwide broadcast stated that the move is in line with his administration’s commitment to free enterprise, free entry and free exit in investments which is the hallmark of his administration investment policy.

“Fellow compatriots, our administration is committed to free enterprise, free entry, and free exit in investments while maintaining the sanctity and efficacy of our regulatory processes. This principle guides the divestment transactions in our upstream petroleum sector, where we are committed to changing the fortune positively. As such, the ExxonMobil Seplat divestment will receive ministerial approval in a matter of days, having been concluded by the regulator, NUPRC, in line with the Petroleum Industry Act, PIA. This was done in the same manner as other qualified divestments approved in the sector.”

The President also seized the opportunity to plead with Nigerians to be patient with his administration’s reform policies. “As your President, I assure you that we are committed to finding sustainable solutions to alleviate the suffering of our citizens. Once again, I plead for your patience as the reforms we are implementing show positive signs, and we are beginning to see light at the end of the tunnel”.

“Our energy transition programme is on course. We are expanding the adoption of the Presidential Initiative on Compressed Natural Gas for mass transit with private sector players. The Federal Government is ready to assist the thirty-six States and FCT in acquiring CNG buses for cheaper public transportation.

Fellow Nigerians, while we are working to stabilise the economy and secure the country, we also seek to foster national unity and build social harmony and cohesion. Our economy can only thrive when there is peace”. he enthused.

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ExxonMobil To Invest $10bn In Nigeria’s Deep-Water Oil Operations

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As part of the administration’s push to improve Ease of Doing Business (EoDB), Nigeria’s Vice President Kashim Shettima has expressed support for ExxonMobil’s plan to invest $10 billion in the country’s deep-water oil sector.

Speaking on Wednesday, September 25, 2024, during a meeting with ExxonMobil executives at the 79th United Nations General Assembly (UNGA) in New York, Shettima called the investment “a clear testament to the administration’s economic reforms and investor-friendly policies.”

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This announcement follows news that international maritime company DP World intends to develop a multibillion-dollar port project in Nigeria.

Stanley Nkwocha, Senior Special Assistant to the President on Media and Communications, shared the development in a statement on Wednesday. He quoted Shettima as saying: “ExxonMobil’s potential investment aligns with the vision of President Bola Ahmed Tinubu’s administration for a more investment-friendly Nigeria.

We are committed to fostering an environment that supports such transformative projects.”Shettima also discussed the administration’s broader efforts to improve the ease of doing business, highlighting the “Renewed Hope Agenda,” which aims to simplify bureaucratic processes, enhance transparency, and offer fiscal incentives to attract global investors.

“Our administration has taken bold steps to unify the exchange rate, remove fuel subsidies, and implement tax reforms. These measures, though challenging in the short term, are intended to create a stable and predictable business environment in the long term,” he added.

On the oil and gas sector, Shettima mentioned that the government is revising the fiscal framework for deep-water operations to attract investment while ensuring fair returns for the Nigerian people.

 

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