Shareholder Approves Forte Oil Divestment Of Subsidiaries

Shareholders of Forte Oil Plc, on Wednesday May 23, 2018, approved the board of directors’ request to divest its upstream services business, power generating business and its downstream business in Ghana. The shareholders gave the approver at the company 39^th Annual General Meeting (AGM) in Lagos.

The three businesses are, Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited. The proceed from the divestment of the upstream services business and the power generating business will be used to fund the downstream marketing business strategic expansion and repositioning initiatives.

Highlights of the company 2017 financial performance shows that, revenue reduced by 13 percent to N129,44 billion as against N148.8 billion in 2016. The fuel business which account for 61 percent of revenue dipped by 35 percent year on year to N78.8 billion. In 2017 as against N12.1 billion in 2016, largely due to the reduced product supply.

The lubricant business which accounts for 9 percent revenues grew by 6 percent year on yearN12.1 billion in 2017 as against N11.4 billion recorded in 2016. The upstream services production & drilling chemical businesses contributed 1 percent to revenues which dipped by 27 percent year on year decline to N1.9 billion in 2017 as against N2.5 billion recorded in 2016. While the power business contributed 27 percent to revenues growing by 183 percent to N36.6 billion in 2017 as against N12.9 billion recorded in 2016.

Photo Caption: Akin Akinfemiwa Group Chief Executive Officer of Forte Oil Plc.