Forte oil has picked up from where it stopped in 2013, touted as the most turn around company on the Nigeria stock exchange in 2013 due to improved business performance, astronomical share price appreciation, early flying of 2013 financial performance and paying an impressive dividend of N4 which amounts to 93% payout from the company EPS. The company has kept up with it trends by releasing an impressive 2014 Q1 result which shows both top-line and bottom-line improving respectively.
Forte oil has continued with its transformation, recording an
enormous 2014Q1 QoQ growth from topline to bottom line. Revenue grew by 30%
from 26bill to 34bill while PAT also grew by 108% from 529mill to 1bill on QoQ
basis.
The EPS of the company grew by 109% on a QoQ basis.
However as peculiar to the sector the company found itself,
despite growth in the profit after tax, the profit margin of the company stood
at a meager 3.2% while the return on equity stood at 2.8%.
The company has a PE of 146.7 with an estimated 2014FY PE of
36.57 which makes the company look expensive, however the high PE could also
represent investors anticipation of further growth in the company fortune as
the share price has appreciated from N101 to a 52wks high of N150 in the last
one month.
Questions and comment will be highly welcomed.
Twitter - @1himself
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