Q2: Forte oil to raise N50bn debt capital

Considering the enormity of quest to re-engineer its operations and further boost returns on investment, forte oil has concluded plans to raise N50billion debt instrument from the capital market.

Similarly, the company disclosed that the second leg of its capital raising which will be done through equity financing in 2017 or beyond when the need arises.

Addressing the capital market community on Monday, during the company’s fact behind the figure on its H1 2016 results, the Chief Executive Officer, Mr. Akin Akinfemiwa said proceed from debt capital which will done in tranche of N10 billion of N15billion will be chanelled into the company’s operations to boost returns to shareholders.

He said part of the company’s strategic focus for H2 2016- aimed at increasing its businesses, includes, increasing supplies of petroleum products lmports on full dergulation kicks in and forex availability increase.

“Completion of Truck Rationalisation Projects to ensure safety and reliability; aggressive pursuit of inorganic growth opportunities to grow market share; completion of major overhaul of the GT13 by the end of August 2016; improved gass supply for power generation and improved power evacuation to the national grid.

“Aggressive follow-up on upcoming business opportunities & ITT towards ensuring a positive outcome; commencement in Q3 of the Akpo production chemical contract with total/ NAPIMS prior to contract award amongst others.

Speaking specifically on the strategy and outlook for H2 2016, Akinfemiwa said the company in its prowess to grow its bottom-line, will deepen it focus on the company’s high margin products like its lubricant and lubes.

He said, the company will fully exploit its LPG business, particularly LPG retailling and bottle regilling, even as it will optimise and expand the Geregu power plant asset.

“Diversificaton into the upstream space through profitable acquisition of upstream asset; Harness partnership with convernience stores, financial institution and telecommunication firms and increase footfall to our station introduction of new product offering solar energy solution and other alternative energy solution; diversification into high margin related business” he added.

He explained that the company will also explore the optimise working capital mix, achieve optimal term structure for loans, just a it will strenghten its distribution channels and pursue a focused merger and acquisition strategy.

Earlier in his remarks, the Executive Director Marketing Operation and Technology at Nigerian Stock Exchange (NSE), Mr. Ade Bajomo said while the Exchange has continued to position itself as the choice stock market in the African sub-region, noted that the Exchange will continue ensure that quoted companies act by the rules in the market.

He said the Exchange as part of its leadership resolve will soon launch the Acute Data information platform that will aid in wise investment decision making in the equity market.

Meanwhile Forte oil in its financial statements for the first half (H1), ended 30th June 2016, announced a profit for the period amounting to N2.2 billion, a 11.8 percent drop from N2.5 billion posted as profit in H1 2015 on account of a 179.9 percent increase in income tax expense of N2 billion from N725 million in the first half of 2015.

However, profit before tax rose by 30.9 percent to N4.3 billion from N3.3 billion, as Earnings per share appreciated to N1.87 from N1.75 posted for H1 2015.The group’s revenue appreciated 38 percent to N84.4 billion from N61.2 billion, other income from accruals on freight, rental and throughput income, forex gains amongst others indicated a 3 percent growth from N1.573 billion to N1.614 billion in H1 2016.