Forte Oil released its 2014 FY results showing profits dropped by about 11% to N4.4billion. Earnings per share also dropped by 49% year on year after netting off profits attributable to minority shareholders. The Chief Financial Officer of the company Mr. Julius Omodayo-Owotuga had this less than compelling reason as an explanation.
“The 7.94 per cent drop in the group’s profit before tax is largely attributable to the 10 per cent devaluation of the naira in November 2014 and increased finance costs caused by huge subsidy receivables from the Federal Government of Nigeria.
“These receivables were outstanding for an average of 270 days compared to the 45 days provided for in the PSF scheme. Also in 2013, we had non-recurring income of N2.11bn from sale of property and interest received from PPPRA relating to late payment of subsidies in 2010 and 2011.
“We believe the business is resilient, stronger, sustainable and better positioned for the challenges ahead. This is evident in the 33 per cent increase in turnover and 30 per cent growth in our profit from core operations.”
