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Forte Oil targets N11bn in 2016, promises higher returns

By on December 22, 2015

Shareholders of Forte Oil Plc should expect better returns in 2016  as the company has projected a profit after tax of N11.1 billion.  The company is hinging its projection and confidence of impressive performance in 2016 on strategies to exploit opportunities in downstream, upstream and power sectors.

Speaking at the maiden Investors Conference in Lagos last week, the Group Chief Executive Officer of  Forte Oil Plc, Mr. Akin Akinfemiwa said   the company’s  involvement in  crude oil lifting, completion of the major overhaul  and increase in the capacity of  Geregu power plant to 435 megawatts  would  impact  positively on  its operating margin and enhance profitability.

The CEO said  the company’s diversifications from downstream player to an integrated energy solution provider underpins the firm’s medium and long term strategy to drive future profitability.

According to him,   the company would deepen its focus on high margin products and introduce new product lines such as bitumen,  LPFO and LPG and acquire 30 new retail sites.

“We are involved in the lifting of the Nigerian crude oil, though not being reflected yet but we have just being informed and this would be one of the business major drivers in 2016.  With activities in the Nigerian power sector, the firm is strategically positioned to benefit from government reforms, boosting future profitability through diversification, utilisation  and cost efficiency,” he said.

Akinfemiwa noted that the company, has also concluded plans with four reputable partners to roll out 70 brand new  redesigned lube bays nationwide  in the coming year.

Also speaking at the conference, the Chairman of   Forte Oil,  Femi Otedola told the shareholders that  the  improved performance recorded by the company over the years resulted from  sound corporate governance, a development he said had  enabled the firm to deliver long-term value for shareholders.

“It is about is about ensuring that shareholders get returns not about acquiring assets.  We have the best corporate governance and now is time to reap the investment made wisely couple of years ago, ” Otedola said.

 

[ThisDay]