Forte Oil eyes offshore markets

Forte oil02 September 2013, Lagos – Forte Oil Plc has disclosed plans to expand its operation beyond the shores of Nigeria to other West African countries.

The company also said that it has set strategic plans that will guarantee its ride to the number one position as energy solution provider in sub-Saharan Africa in the next two years.

Speaking at the facts behind the figure presentation on the Nigerian Stock Exchange, NSE, the Managing Director, Forte Oil, Mr. Akin Akinfemiwa, explained that already, the company has presence in Ghana through APOG, its fully-owned marketing subsidiary, and it hoped to expand to countries like Liberia, Togo, Sierre Leone, Chad and Niger

Akinfemiwa explained that the transformation agenda was hinged on three pillars, which include building a long term yet successful company, enhancing shareholders’ value through robust returns and boosting investors’ confidence.

According to him, “the hallmarks of our transformation strategy include: strong corporate governance, business ethics, compliance and controls at all levels, coupled with enhanced safety, health and environment practices across our value-chain.”

He listed other strategic plans to include diversification of the group earnings across the energy value chain, restructuring of Geregu Power Generating Plant, as well as expansion into alternative energy & midstream oil and gas through joint ventures, strategic alliance and acquisitions.

He noted that Forte Oil also plans to diversify into refining and petrochemicals business, expansion into upstream oil and gas through participating in government bids round and diversification of undeveloped fields from IOCs, saying that all these will result in increased dividend year-on-year for the shareholders.

He further stated that to-date, Forte Oil is the second best performing share in the NSE All Share Index and the best performing stock in oil and gas sub-sector of the NSE.

The Forte Oil boss noted that the company recorded 63 percent increase in profit after tax to N1.39 billion from N855.64 million in 2012 for half year ended 30th June, 2013, while revenue for the same period rose by 21 percent to N59.69 billion as against N49.7 million in the same period of 2012, attributing the increase in revenue to rise in supplies and depot expansion activities.

“However, gross profit declined by 14 percent due to demurrage and other unavailable import related charges and reduction in lubes sales,” he stated.

“The visible growth in our figures showed that the turn around programmes we initiated have started yielding results,” he added.

Meanwhile, the company has said that it has completed acquisition of the Geregu Power Plant under the recent privatisation exercise carried out by the Bureau of Public Enterprise.

The purchase, according to the comoany, was done through its subsidiary, Amperion Power Distribution Company, made up of a consortium of Forte Oil Plc as majority holder, BSG Resources Limited and Shanghai Municipal Electric Power Company.

“Forte Oil Plc is expected to take full control of the power Plant (Geregu Power Plant) on the 21st of September when the formal handing over ceremony will take place,” it said.

– Vanguard

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