FORTE Oil Plc, Nigerian downstream player has confirmed its readiness to raise N50 billion debt capital before the end of 2016 financial year.
The Group Chief Executive Officer of the company, Mr. Akin Akinfemiwa, said at its ‘facts behind the figures’ on the floor of Nigerian Stock Exchange, NSE, that a capital raising programme had been completed and discussion was ongoing with the management of the NSE.
The debt capital, according to the Group Chief Financial Officer, Julius Omodayo Owotuga, will be carried out in tranches which may be between 15 billion or 10 billion, with the hope to raise equity capital in the near future.
He said the company was optimizing and expanding its Geregu Power Plant asset, and also working towards growing market share to 20 percent from 14 per cent currently.
On the company’s strategic focus areas before the end of the year, he said, “Forte Oil is to increase supplies of petroleum products imports as full deregulation kicks in and foreign exchange availability increase.”
Forte Oil had reported a profit after tax increase of 23 per cent from N2.5 billion in June 30, 2015 to N3.1 billion in June 30, 2016 while revenue also appreciated 38 percent to N84.4 billion from N61.2 billion.
According to Akinfemiwa, the power business contributed 5 percent to revenue and 15 percent to profit before tax as a result of low generation due to ongoing major overhaul project and gas supply constraints due to security challenges in the Niger Delta region.
Going forward, he said management was planning to aggressively follow up on upcoming business opportunities toward ensuring a positive outcome.
With its aggressive plans, he expressed optimistic that the company was well positioned to meet and exceed the 2016 targets of N11 billion in profits before tax, having achieved N6 billion in the first half.
Forte Oil which operates in Nigeria and Ghana, engages in the marketing of petroleum products, which is divided into fuels, production of chemicals, lubricants, greases and power generation.

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