Forte Oil in talks to acquire oil production assets

21 September 2014, Lagos – The management of Forte Oil Plc, on Thursday told the Nigerian Stock Exchange (NSE) that it is holding initial talks for possible acquisition of assets of a downstream company.

In a notice to the NSE, Forte Oil said “discussions on the proposed acquisition is still in its infancy, but this announcement on this possible transaction is in the interest of full disclosure and ensuring that as a company, Forte Oil Plc adheres to the highest corporate governance practices and procedures.”

Forte Oil PlcThe acquisition is part of efforts to further diversify Forte Oil’s revenue and profit base, after it last year acquired the Geregu Power Generation Plant in Kogi State, which has since become a cash-cow. Forte Oil formally took over the plant on November 1, 2013 following a successful acquisition of the 414 power generation plant located, under the Federal Government-led privatisation programme to divest public power assets.

As a result of the power plant acquisition, Forte Oil’s half year 2014 audited results revealed a 152 per cent growth in profit before tax, at N4.19 billion, as against the N1.66 billion reported in the correspondent period of last year.

The growth in profit was significantly higher than the 33 per cent in turnover, which stood at N79.61 billion in the half year ended June 30, 2014, as against N59.96 billion recorded in the same period in 2013.

Commenting on the performance, Forte Oil’s Group Chief Financial Officer, Julius Omodayo-Owotuga, said the robust growth in profitability in “our third year of transformation is a clear indication that the milestones set in our restructure programme are being met earlier than envisaged.”
*Kingsley Ighomwenghian – Daily Independent

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