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Nigerian Stock Exchange CGRS Certification Excites Forte Oil
Forte Oil Plc, one of Nigeria’s leading integrated energy solutions providers, has said certificates by the Corporate Governance Rating System (CGRS) presented to its directors in recognition of their compliance and integrity with minimum acceptable standards of corporate governance, is a testament to the transparency of the board of the company.
The CGRS was established by the Nigerian Stock Exchange (NSE), in partnership with the Convention on Business Integrity (CBi) for rating listed companies with the aim of strengthening the corporate regulatory and supervisory capacity in Nigeria and providing information with which investors and consumers can differentiate between companies on the basis of their compliance.
Reacting to the certification, Forte Oil said it is a testament to the transparency of the board of the company to subject its directors and governance processes to external review and accreditation.
“This is in furtherance of the vision of the company to place corporate governance as a foundation for the growth of the company in its drive to be the foremost integrated energy solutions provider,”
In addition to the certification given to the directors, Forte Oil Plc was also included into the coveted NSE Corporate Governance Index which tracks the performance of all companies which have undergone the CGRS accreditation.
Forte Oil Plc had recorded improved nine months financial results ended September 30, 2017.
Although the company recorded revenue of N9.887 billion in 2017, down from N121.1 billion, the efficient cost management strategies adopted improved the bottom-line.
Cost of sale was reduced by 23 per cent, declining from N105 billion to N79.9 billion to bring the gross profit to N16.9 billion in 2017, compared with N15.4 billion in 2016.
Distribution expenses fell by 45 per cent to N1.39 billion, from N2.56 billion, just as administrative expenses was cut by 8.2 per cent to N6.7 billion, from N7.3 billion. Consequently, operating profit stood at N9.7 billion, compared with N7.8 billion in the corresponding period of 2016.
However, net finance cost spiked by 113 per cent fromN2.2 billion to N4.7 billion, apparently due to bond service obligations. Despite the increase in net finance cost, Forte Oil ended the period with profit before tax of N5.5 billion and profit after tax of N5.0 billion in that order.
The energy company had planned to raise N20 billion fresh capital via public offer using a book building process. However, it recently put the plan on hold pending the conclusion of a corporate restructuring that is aimed to maximize the emerging opportunities in the Nigerian energy sector.