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Forte Oil’s Full Year profit soars by 520%

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Oil and gas firm, Ardova Plc (formerly Forte Oil Plc), has reported a 520% increase in its after-tax profit for Full Year 2019.

This and other details of the firm’s performance are contained in Ardova Plc’s Financial Statements for the Year Ended 31 December 2019, posted on the website of the Nigerian Stock Exchange Friday.

Revenue rose from N134.706 at FY2018 to N176.551 billion at FY2019, signalling a 31.1% increase.

Ardova’s Profit Before Income Tax (PBIT) grew by 352.5% to N4.654 billion at FY2018 from N1.029 billion in the corresponding period of last year.

Profit After Tax (PAT) climbed from N631.471 million at FY2018 to N3.915 billion at FY2019, translating to a 520% growth.

The Earnings Per Share (EPS) of Ardova Plc grew from N0.48 at FY2018 to N3 at FY2019, implying a 525 increase.

However, its Cost of Sales escalated significantly in between the periods, jumping by 34% from N123.376 billion at FY2018 to N165.269 billion FY2019.

Ardova Plc’s management should consider cutting such expenses significantly in the future in order to turn out improved results.

Majority owned by energy mogul, Abdulwasiu Sowami, Ardova Plc has undergone major corporate transformation since the ownership of the firm exchanged hands in the middle of 2019.

Billionaire investor, Femi Otedola had last year divested his stake (982.97 million shares or 74.02%) in the firm in a deal said to be around N65 billion and committed the proceeds to investment in Geregu Power Plant.

With outstanding shares of 1,302,481,103, its market capitalisation as of today is over N22.142 billion.

READ ALSO: UBA’s Full-Year Profit up by 13%

It is currently trading below its fair value.

Ardova Plc closed on the floor of the NSE on Friday at N17 per share.

Earnings Per Share is the profit that each unit of a company’s ordinary shares  yields  during a particular period. It is simply calculated by dividing the Profit After Tax by the company’s total outstanding shares.  Increase in a company’s EPS often reflects an improvement in its bottom-line while a fall, on the other hand, indicates a declining profit.

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