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Forte Oil Seeks N50b For Expansion

forte-oil

By Modupe Gbadeyanka

One of the major players in the oil and gas sector in Nigeria, Forte Oil, has expressed its intention to raise N50 billion in fresh capital through debt instruments before the end of 2016 for the expansion of its operations.

This was made known by the company to the Nigerian Stock Exchange (NSE) in a filing.

Forte Oil noted that has grown its pre-tax profit by 6.52 per cent from N5.288 billion a year earlier to N5.633 billion in 2016, indicating that its revenue was up by 32.16 per cent from N91.616 billion against N121.083 billion recorded during the period under review.

In the report to the NSE, Forte Oil said its profit after tax dropped from N4.28 billion in third quarter of 2015 to N2.8 billion in the period under review, and also recorded a 34.73 per cent decline in profit after tax for the third quarter ended September 30, 2016.

Also, the company earnings per share dropped to N2.80 from N4.28, while the cost of sales went up by 34 per cent to N105.59 billion from N78.64 billion in 2015.

“We will be raising debt capital in 2016 and we are in discussion with NSE but for equity fund raising, it will not hap-pen this year, maybe in the future,” the group chief executive officer of Forte Oil, Mr Akin Akinfemiwa, said at the company’s Facts Behind the Figures presentation on the Exchange in Lagos.

“We want is to raise long term debts and make our interest rate very predictive. The first series of the fund will be between N10 and N15 billion,” he added.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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