FEMI OTEDOLA’S FORTE OIL PLC ASSURES SHAREHOLDERS OF N11.1BN PROFIT IN 2016

Chief Femi Otedola, Chairman, Forte Oil Plc

A foremost indigenous major marketer of refined petroleum products with a strong presence in the thirty-six states of Nigeria and Abuja, Forte Oil Plc, has declared its target of a profit of N11.1 billion in 2016 and turnover of N224 billion, adding that its involvement in the execution of crude oil lifting contracts and the completion of the major overhaul of Geregu Power plant to 435mw would increase its operating margin and enhance profitability.

This development was revealed by the Group Chief Executive Officer of the company, Mr. Akin Akinfemiwa, while speaking at investors’ forum in Lagos. He assured shareholders that the company was well positioned to leverage opportunities in the downstream, upstream and power sector and explicated that it would deepen its focus on high margin products such as lubricants and introduce new product lines such as bitumen, LPFO and LPG.

The Group CEO of Forte Oil made it clear that the company reached an agreement last September with Mercuria Energy Group to acquire a 17 per cent stake in Forte Oil valued at $200million, subject to regulatory and shareholders’ approval. He said that the transaction would give the company access to global market.

In his own words: “This investment provides Forte Oil with additional working capital to expand and intensify its market penetration to give the company the leverage it needs to continue its meteoric growth in the downstream sector and access to a global market.”

Mr. Akimfemiwa, who is an erstwhile Group Managing Director of Skye Bank Plc, added that the company was currently pursuing strategic acquisition of additional 30 retail sites in key business areas and had also concluded plans with four reputable partners to roll out 70 brand new redesigned lube bays nationwide from next month.

He stated that the company’s diversification from downstream player to an integrated energy solution provider underpins its medium and long term strategy to drive future profitability.

He said: “We are involved in the lifting of the Nigerian crude oil, though not being reflected yet, but we have just been 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 added that the company would roll out an e-commerce site that would enable the company deliver its products to consumers at their doorsteps.

In his own speech, the Chairman of the company, Chief Femi Otedola, hinged the improved performance recorded by the company over the years on sound corporate governance, adding that this has enabled the firm to deliver long-term value for shareholders.

In his own words: “Sound corporate governance is key to the success of any business. Another aspect is non-interference of the owners of the company. It is about ensuring that shareholders get returns not about acquiring assets. We have the best corporate governance and now is the time to reap the investment made wisely a couple of years ago.”