Forte Oil Plans Expansion Drive To Boost Earnings

By John Okoh, Lagos

 

Akinfemiwa

Forte Oil Nigeria Plc has said that it’s expanding its businesses with the introduction of new products and services offering in the areas of solid control, waste management and engineering services, which is aimed at boosting the company earnings performance.

The Group Chief Executive Officer Mr Akin Akinfemiwa disclosed this to market operators during its facts behind the figures presentation on the floor of Nigerian Stock Exchange (NSE) in Lagos.

He said parts of the company strategy is to improve operating margins, diversify revenue base and pursue focused mergers and acquisitions, strategic partnerships and joint ventures.

On improving operating margin, he said “growing the downstream business organically, deepen focus on high margin products, that is, lubricants increase lubes and throughput per station.

“Fully exploit LPG business particularly LPG retailing and bottle refilling, optimize operation of Geregu Power plant asset. Achieve optimal structures for debt”

In the area of diversifying revenue base, he explained that it would be done through diversification into the upstream sector through profitable acquisitions of upstream assets. Harness partnerships with convenience stores, financial institutions and telecommunications firms to increase footstall to retail out lets and improve assets utilization, introduction of new product offering such as solar energy solution and other alternative energy solutions.

He added that they will aggressively pursue merger and acquisition opportunities along the energy value chain, make accretive acquisitions while exercising bid/pricing discipline, grow market share through acquisition of strategic retail infrastructure/assets, enter into strategic partnerships and joint ventures for local refining of petroleum products.