Shareholders of Forte Oil have approved a dividend of N2.50 per share and a bonus of a new share for every five shares held that was proposed by the board of the company in its 2014 financial year.
The shareholders commended the company for its diversification and urged it to ensure it has sufficient cash reserves to finance its operations
National coordinator of the Independent Shareholders Association of Nigeria (ISAN), Sir Sunny Nwosu, stated this at the yearly general meeting held in Lagos last week.
The company’s chairman, Mr Femi Otedola told the shareholders that “2014 financial year was the third and final year of our three year strategic transformation initiatives and we are pleased with our 2014 performance amid the challenging operating environment”.
For the year under review, the board proposed a total dividend payout of N2.7 billion, representing N2.50 per share and also an additional bonus share for every five shares held.
Otedola said: “We remain committed to our vision of being the foremost integrated energy solutions provider in Nigeria with strong presence in downstream operations, power and upstream services.
“We will be expanding our reach in the near term to the upstream sector and other related high margin businesses that will continue to maximise shareholders’ wealth”.
The group chief executive officer, Forte Oil, Mr Akin Akinfemiwa, added that the company had witnessed a transformation from a loss making entity of N19 billion loss in 2011 to a profit and sustainable business entity within the last three years with an annual group profit of N1.1 billion in 2012, N6.5 billion in 2013 and N6.01 billion in 2014.
He pointed out that the company resumed the payment of dividends after four years of huge losses and negative retained earnings, having successfully executed a capital reorganisation exercise.
Reviewing the company’s 2014 result, its revenue increased by 33 per cent to N170.12 billion compared to N128.03 billion largely due to ongoing strategic retail network expansion, growth of commercial customer base and gains from the recent diversification in the power sector with Geregu Power plant contributing 5.33 per cent to the revenue level.
Source : Leadership