Forte Oil Nigeria Plc has assured shareholders that the company is focused at delivering more value to shareholders and stakeholders with improved cost saving measures, diversification and commitment to merger and acquisitions.
The company disclosed this during presentation of its facts behind the figures on the Nigerian Stock Exchange (NSE0 last Friday.
CEO, Forte Oil Plc, Mr. Akin Akinfemiwa gave the assurance adding that he fund raising by the company which secured shareholders endorsement at its 2016 AGM, is geared toward raising fresh funds to drive growth and expansion.
Responding to this the CEO forte Oil Plc, Mr. Akin Akinfemiwa, on the volatility in the company’s share price said “Forte Oil is not AP, I had earlier in my presentation emphasized that Forte Oil Plc is based on high level of corporate governance, we will never, never engage in share manipulation.
Movement in share price is based on demand and supply and we will never be involved in such”
He said that the company’s growth is being propelled more by earrings from the power subsidiary, Amperion Power Distribution Company Limited, the power generation division of Forte Oil PLC recently completed the acquisition of a majority stake in the 435MW Geregu Power plant located in Kogi State of Nigeria, under the government-led privatization programme in the power sector.
Forte Oil H1’17 results 22.2 per cent decline in turnover to N65.6 billion, he revealed was in line with the company’s estimate of N66.9b, reflecting a 1.8 per cent deviation. This is driven by challenges in the downstream sector.
The profit after tax earnings boost by 84.0 per cent to N4.b, was enhanced by higher contribution by the power subsidiary and the upstream subsidiary contributions.
The company’s revenue was down by 7.3 per cent QoQ profit after tax (PAT) rose by 97.5 per cent QoQ;
According to H1 report circulated at the facts behind the figures’ presentation, the petroleum marketing division of Forte Oil Plc struggled in H1’17, which reflected in the 44 per cent drop in revenue to N41.3b. Its contribution to the group revenue dropped to 63 per cent in HI 2017, compared with 16.88 per cent in H1 2016.
He said that the strong showing in the higher margin lubricant and power divisions continued from Q1’17 levels as revenues rose by 23 per cent YoY and 284 per cent YoY to N6.3b and N16.8 billion respectively.
Akinfemiwa said that respective contributions to aggregate revenue jumped to 10 per cent, just as recorded in the same period of 2016: 10 and by 26 per cent in H1 2017 , against 5 per cent in HI 2016 , adding that the power subsidiary revenue growth was manifestation of improved pricing and higher capacity utilisation.
He said that the negative impact of the challenges in the company’s downstream businesses led to decline in the first half 2017 revenue, however, Forte he said posted significant growth in lubricant business which reflects positive results from the expansion of its lubricants business.
Meanwhile, Mr. Tajudeen Olayinka, a senior stock broker had commented on volatility in the company’s share price and cautioned against share manipulation, a development he said breaches ethical practices and susceptible to severe consequences.
According to him, he raised the issue based on the company’s sudden share price hike in some occasions a, a developments he said could not be explained by market watchers. “Please don’t be pushed to manipulate share prices” Olayinka said.