Forte Oil to strengthen operations with additional capital

The Group Managing Director, Forte Oil Plc, Mr. Akin Akinfemiwa, has said that the company will strengthen its operation through the injection of additional capital in the coming weeks.

Akinfemiwa said this in Lagos on Monday during a ‘Facts Behind the Figures’ presentation at the Nigerian Stock Exchange.

He said, “There is an ongoing plan and commitment with potential investors to inject additional capital through debt or equity within the next few weeks. This, we believe, will significantly impact our negative working capital and also shore up our shareholders funds.”

He assured stakeholders at the event that by focusing on products such as lubricants and adding 21 megawatts to the Geregu power plant, the company would diversify its revenue base for greater returns.

Already, he said plans had been concluded to diversify into the upstream sector through profitable acquisition of upstream assets.

He added that it would also boost its partnership with quick service restaurants, financial institutions and telecommunications firms.

According to him, Forte Oil has entered into partnership and alliances with technical partners to participate in the proposed sale of marginal oil fields and divestment of international oil companies’ investment in local oil blocks.

He said, “The company will optimise opportunities from its real sector assets to grow complimentary businesses, which will ultimately increase its bottom line. The company also intends to optimise its distribution channel through focusing on retail network optimisation and strategic acquisition of prime retail sites.”

Forte Oil had recorded decline in revenue and profit in the first half of the year.

While revenue fell by 23 per cent from N79.6bn to N61.17bn, profit before tax dropped to N3.26bn in the six-month ended June 30, 2015. Profit after tax was down by 19 per cent to N2.53bn from N3.13bn.

The Chief Executive Officer, NSE, Mr. Oscar Onyema, commended the company for abiding by the Exchange’s rules and regulation and pledged that the Exchange would continue to ensure that good corporate governance was enshrined in the operations of all listed companies.

He said, “Forte Oil Plc continues to be one of the leading forces in the oil and gas sector of our market and has continued to strive to achieve the highest standards of corporate governance by ensuring ongoing compliance with the Exchange’s post-listing requirements, including prompt filing of its financials.”

Source : Punch

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