a FORTE OIL station

Forte Oil Plc has unveiled key business strategies aimed at boosting the company’s revenue and shareholders’ value in 2015 financial year.

Mr Akin Akinfemiwa, the company’s Group Managing Director, disclosed this at the company’s “Facts behind the Figures’’ at the Nigerian Stock Exchange (NSE) in Lagos.

Akinfemiwa said that the company would improve its operating margins and diversify revenue base.

According to him, this is by focussing on high margin products such as lubricants and expanding the Geregu Power Plant assets with additional 21 mega watts.

He said that the Geregu power plant added 56 per cent to the company’s profit before tax.

Akinfemiwa said that the company would raise additional capital to shore up the company’s shareholders’ funds.

“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 would significantly impact on our negative working capital and also shore up our shareholders funds,” he said.

Akin Akinfemiwa, CEO Forte Oil

Akinfemiwa explained that the company had concluded arrangement to diversify into the upstream space through profitable acquisition of upstream assets.

He said that the company would diversify into the upstream space through profitable of upstream assets and harness partnerships with quick service restaurants, financial institutions and telecommunications firms.

Akinfemiwa said the company had entered into strategic partnership with technical partners to participate in the proposed Federal Government sale of marginal oil fields and divestment of International Oil Companies (IOC) investment in local oil blocks.

He explained that the company would optimise opportunities from its real sector assets to grow complimentary businesses which would ultimately increase its bottom line.

According to him, the company intends to optimise its distribution channel through focusing on retail network optimisation and strategic acquisition of prime retail sites.

He said that the company would pursue a merger and acquisition with partners with same similarities with the company’s corporate governance strategy.

Akinfemiwa said the company was discussing with a number of foreign investors to inject new capital, adding that the company would select people with similarities in corporate governance.

“The company for the half year ended June 30, 2015 posted revenue of N61.17 billion against N79.61 billion recorded in the preceding period of 2014, a decrease of 23 per cent.

“Profit before tax stood at N3.26 billion compared with N4.19 billion achieved in 2014, representing a decrease of 22 per cent.

“Its profit after tax dropped by 19 per cent to N2.53 billion against N3.13 billion posted in the comparative period of 2014,’’ he said.