Forte Oil to grow earnings, reward shareholders despite challenges

Forte Nigeria Plc, is positioned to deliver more value and returns on investments of the stakeholders and the shareholders, through sustained effort at growing earrings ad gross income in all fronts of its business module.

This was disclosed recently by the company in Lagos, during a media conference , following the unveiling of the company’s various initiatives, which it said, have started yielding positive dividends.

The company, however said that the impact of its transformative initiatives would better be appreciated in the fourth quarter.

The Group Executive Director, Finance and Risk Management, Forte Oil Plc, Mr. Julius Omodiaye Owotuga said that though the harsh operating environment, foreign exchange challenge, devaluation of the Naira, among others, impacted negatively o the company in 2016 business year.

Owotuga said that the federal government, through its commitment to ensuring availability of power, has ensured that all power produced is paid for, saying that the company had leveraged on its power subsidiary to deliver beautiful results.

Forte , he said, is driving growth earnings and gross through five strategic areas, such as, strengthening business operations, focusing on mergers and acquisitions, optimizing distribution channels, among other strategies.

He assured that Forte Oil, in the fourth quarter of 2017, would unveil four new services that will further boost earnings.

He said that the negative trend created by the forex challenge, devaluation of the naira had reversed; and more investors are now buying into the company, adding that diversification by the company is yielding positive results.

Hence, the downs stream is import-dependent, the company has to put end to financing with debt, as equity financing is more ideal , hence the need to raise the N20 billion from the market.

The result, he said, reflected I first quarter 2017 and will be replicated in the successive quarters of the year.

Forte Oil, the Executive Director said, grew profit by 128.9 I the first quarter. The company operates majorly in the downstream sector of the oil and gas industry, as foremost indigenous petroleum marketing company; it also majors in the up stream services and power generation, through its strategic power plant.

The Amperion Power Distribution Company Limited, subsidiary of Forte Oil has installed increased power generating capacity and operate at full capacity.
The company is, it was learnt, is now diversifying into other forms of power generation, including solar energy.

However, Adelakun Ayodeji, Head, Finance forte Oil, remarked that Forte Plc’s commitment to voyage the challenging environment, that the company, early in year, raised 9 billion bond, first tranche of a N50 billion bond issuance, which has been admitted by the FMDQ.

This , he added, will be followed by N 20 billion fund’s raising from the capital market to boost operation, hence, most of its funds has been internally generated.

To evade the forex challenge, he said that the company exited its forex denominated load early and took a naira denominated loan, which saved it from what could have been a huge loss, occasioned by forex volatility in 2016.

He said that Forte is focusing on its downstream, upstream and power subsidiaries, as various new initiatives to strengthen operations in all the business divisions have resulted in huge returns, which will translated to profitability to the company and returns on shareholders funds.