Forte Oil Plc released its 2016 Q1 results showing pre-tax profits rose 55 percent to N1.3 billion. Revenues also rose 7.7 percent to N35.6 billion. This follows an impressive 2015 full year results where the company reported a profit after tax of N5.7 billion up 30% from the previous year. Profits attributable to shareholders of the company actually rose 93% to N4.3 billion.
Forte Oil share price at the time of the release of its full year results was N279 and rose to N342 by the end of February 2016. It will be the highest ever for the stock since its remarkable run that started in 2012. The share price has been on a downhill since then.
Analysts opine that the downward trend in share price has got little to do with the results of the company as fundamentals seem to be holding up. Rather, the current drop may be attributed to the Forbes list of richest men in Africa which was announced back in March 2016. According to legend, stocks associated with companies owned by billionaires typically go through a rally in the preceding months to the announcement of the billionaire list. This is because, Forbes typically relies on the market share of quoted companies to determine how rich billionaires are. This is purely conjecture and has not be proven yet, however the trend is remarkable.
Forte staged a brief comeback on Thursday, gaining about 5% to close at N199.48 snapping a 5 days losing streak. As we have always said on Nairametrics, it will be at your peril to bet against Forte Oil as the stock has always shown strong resilience.