Forte Oil reaps benefits of diversification

Forte Oil20 August 2014, Lagos – Forte Oil Plc has started reaping the benefits of its diversification programme as its power asset (Geregu Power Plant), acquired last November, contributed  29 per cent to the company’s profit for the half year ended June 30, 2014.

The Group Chief Executive Officer of Forte Oil Plc, Mr. Akin Akinfemiwa, who disclosed yesterday in Lagos, added that the company will also diversify into the upstream space through acquisition of upstream assets to  further enhance profitability going forward.

Forte Oil grew its profit before tax for 2014 half by 152 per cent from N1.664 billion to N4.192 billion. Speaking at the company’s “Facts Behind the Figures” presentation at the Nigerian Stock Exchange (NSE),  Akinfemiwa said Geregu Power, which is a power distribution firm, contributed 29 per cent to the group’s bottom line.

According to him, the plant would be overhauled to achieve installed capacity of 414 megawatts, which is currently performing at 60 per cent
He said company would also enter into strategy alliance with international oil companies (IOCs) for acquisition of oil blocs.

He attributed the impressive financial performance in 2013 and first half of 2014 to the three-year transformation programmes initiated  by the company.

According to him, the transformation programme was aimed at repositioning the business on the bedrock of strong corporate governance and business ethics, enhanced safety of health and environment practices, effective business controls across the company, as well as superior customer service delivery

“The success achieved by Forte Oil presently, which showed strong growth performance across its bottom line is the outcome of transformation initiatives embarked upon by the company in the last three years,” he said.

Highlighting some of the milestones of the programme, Akinfemiwa said it has led to increased profitability, capital reorganisation exercise, resumed dividend payment to shareholders, efficiency in processes and improved corporate governance and made the company a consistent early filer  of reports as required by listing requirements of the NSE.

He said as the company enters the final phase of our business transformation, he is confident of building a long term successful company and making Forte Oil Plc the investment of choice through positive actions that boost investor confidence at all times.

In his remarks, the CEO of the NSE, Mr Oscar Onyema, commended Forte Oil Plc’s performance, saying it is showing good leadership in terms of information disclosure and governance.


– This Day
About the Author