Forte Oil to Raise N50 billion Debt Capital

Akin Akinfemiwa GMD of Forte Oil

Nigerian indigenous upstream and downstream player Forte Oil Plc has said it is expected to N50 billion debt capital before the ended of 2016 financial year. The group Chief Executive Officer of oil and gas company, Mr. Akin Akinfemiwa, said the company has completed a capital raising program and discussion is ongoing with the management of the Nigerian Stock Exchange (NSE).

The debt capital according to the Group Chief Financial Officer Julius Omodayo Owotuga explained that they intend to carry it out in tranches which may be between 15 billion or 10 billion. With the hope to raise equity capital in the near future. Forte Oil boss at the company facts behind the figures on the floor of NSE today, said the company is optimizing and expanding its Geregu Power Plant asset.

Speaking on the company strategic focus areas before the ended 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. The company had reported a profit after tax of 23 per cent from N2.5 billion in June 30, 2015 to N3 billion in June 30, 2016.

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, the management plans to aggressively follow up on upcoming business opportunities toward ensuring a positive outcome.

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