Forte Oil Plc on Thursday declared a dividend of 250 kobo per share and bonus share of one share for every five shares for the financial year ended December 31, 2014. The company had rewarded shareholders with a dividend of 400 kobo in 2013. However, the cash dividend was reduced while a bonus issue was added.

According to the audited results made available, Forte Oil recorded a decline of 11 per cent in net profit, falling from N5 billion to N4.45 billion. In all, the company recorded revenue of N170 billion in 2014, showing an increase of 33 per cent above the N126 billion posted in 2013. Cost of sale rose by 31 per cent from N116 billion to N152 billion. Other income dipped by 78 per cent from N6.388 billion to N1.39 billion.

The company was able to reduce distribution expenses by 15 per cent from N2.93 billion to N2.482 billion. Similarly, administrative expenses fell marginally by two per cent from N9.44 billion to N9.22 billion.

Operating profit went up by 29 per cent from N6.27 billion to N8.13 billion. However, net finance cost soared from N254 million to N2.13 billion. This led to drop of seven per cent in profit before tax, which fell from N6.5 billion to N6.0 billion. Profit after tax fell by 11 per cent from N5 billion to N4.45 billion. Earnings per share fell from 430 kobo to 220 kobo; hence the directors recommended a cash dividend that is lower than what was paid in 2013.

Meanwhile, trading at the stock market remained bullish for the four consecutive days. But the growth recorded yesterday was moderate indicating an imminent return of the bears.

The Nigerian Stock Exchange (NSE) All-Share Index appreciated by  0.36 per cent to close at 29,282.04, while market capitalisation  added N34.9 billion to close at N9.8 trillion.

Sectoral performance was also positive except for the NSE Banking Index that declined marginally by of 0.1 per cent. The NSE Oil/Gas Index led with 2.82 per cent increase while the NSE Industrial and the NSE Consumer Goods Index followed with a 1.54 per cent and 1.43 per cent rise respectively. The NSE Insurance Index recorded the least gain with a 0.26 per cent increase.

Source: THISDAY