News Column

Forte Oil Promises Improved Dividend, As NSE Index Rebounds

August 19, 2014

Bamidele Ogunwusi

Management of Forte Oil has stated that it is planning to achieve market dominance in the oil marketing sector through the expansion of retail infrastructure, commercial business and non fuel revenues to be able to pay increased dividend to its shareholders.

The company also intends to diversify into upstream space through profitable acquisition of upstream assets.

Group Managing Director of the company, Mr Akin Akinfemi, stated this at the "Facts Behind the Figures" presentation at The Nigerian Stock Exchange on Tuesday. He said, the company also intends to achieve and generate the installed capacity of 414 mega watt at its Geregu power plant through the major overhaul of GPP.

He hinted that already, a $90 million contract has been awarded for the upgrade of the power plant to make it operate at about 60 per cent.

The company, according to Akinfemi , also has plan to further increase its distribution efficiency, diversified into related high margin products and improve on logistics through the acquisition of an additional 100 trucks to the already acquired 100.

In its half year 2014 financial result, the company posted revenue of N70.606 billion, up from N56.960 billion recorded in the comparable period of 2013 with gross profit rising from N5.734 billion to N8.999 billion. Profit before tax rose from N1.663 billion to N4.191 billion, while profit after tax rose to N3.134 billion from N1.391 billion recorded in 2013.

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Source: AllAfrica

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