Forte Oil Plc has reported 57 per cent increase in Profit After Tax (PAT) in its first quarter (Q1) unaudited financial statement for March 30, 2018.
The company adopted finance charges strategies that boosted its profit performance in the first three months of this year.
According to the results, Forte Oil recorded PAT of N2.96 billion, showing an increase of 57 per cent from N1.88 billion in Q1 2017.
Profit Before Tax also gained 54.4 per cent to N3.2 billion in Q1 2018 from N2.05 billion in Q1 2017.
According to the results, Forte Oil recorded revenue of N39.8 billion, showing a growth of 20.6 per cent from N33 billion in Q1 2017.
Cost of sales rose from N27.2 billion to N33 billion, making the company to close the period with a gross profit of N6.8 billion, up from N5.8 billion in Q1 2017.
Meanwhile, Forte Oil in 2017 audited results reported a Profit before tax that improved by 34 per cent from N5.340 billion to N10.627 billion.
A reduction of 34 per cent in income tax from N2.449 billion to N1.599 billion, made PAT to grow faster.
Specifically, PAT soared by 323 per cent from N2.890 billion to N12.226 billion in 2017. Despite the high profit the board of directors did not recommend dividend payment.
Cost of sales fell from N128.021 billion to N105.327 billion, making the company to close the year with a gross profit of N24.115 billion, up from N20.583 billion in 2016.
Forte Oil reduced its distribution expenses by 40 per cent from N3.016 billion to N1.796 billion, while administrative expenses stood at N10.119 billion, from N10.293 billion in 2016.
Finance income improved by 11 per cent to N2.096 billion to N1.888 billion, while net finance cost reduced by 15 per cent to N3.636 billion from N4.281 billion in 2016.