Forte Oil outlines growth plan, eyes oil assets
Forte Oil Plc would combine investments in its downstream and energy businesses with prospecting for productive upstream oil assets to ensure it achieves its main goal of becoming the foremost integrated energy solution provider in Nigeria.
Chief executive officer, Forte Oil, Mr. Akin Akinfemiwa, outlined the company’s growth plan yesterday at the presentation of the company’s underlying fundamentals at the Nigerian Stock Exchange (NSE) in Lagos.
Akinfemiwa said the group would diligently implement the strategic initiatives under its growth plan to enhance profitability and increase shareholders value.
He said the group was considering two options of acquiring moribund fields and bring back them to production or buy existing international oil companies (IOCs)’s assets in its plan to diversify into the upstream market adding that the group would exercise great caution by identifying the risk and getting parties to share and manage the risks.
He pointed out that the group’s immediate strategic initiatives included strengthening its corporate governance structure, achieving market dominance through the expansion of retail infrastructure, commercial business and diversification into the upstream space through profitable acquisition of upstream assets.
“Upstream diversification is to be managed properly, considering the level of investment required. We are into petroleum retailing and marketing but if we are going into the upstream, we would form strategic alliances so that we can share the risk together because there is no technical expertise for it now. We have identified potential partners that will go into it with us and we are going into it as producing assets not as a prospecting one,” Akinfemiwa said.
He said the company is committed to becoming the investment of choice through positive actions that would boost investor confidence at all times.
He outlined that the company has embarked on aggressive and strategic acquisition programme noting that it has concluded plan to site its branch network in such a way that the distance between two branches would be at the region of three kilometers with a view to expanding its retail network.
According to him, the group’s business transformation programme was aimed at repositioning the business on the bedrock of strong corporate governance and business ethics, enhanced safety health and environment practices, effective business control across the company as well as superior customer delivery.
“We would acquire market where we can drive up volume across Nigeria but it has to be strategic. It has to be three kilometers along densely populated areas where the market is booming. The exercise would be continuous without any time frame and we would continue to consolidate on it,” Akinfemiwa said.
He said the company has also invested in the acquisition of 100 trucks and tankers in order to give transporters the confidence to invest in the business.
He hinted on the prospects of further capital raising by the group noting that the company’s balance sheet for the expansion exercise would be funded through the combination of equity and debt issues.
“Through our focused commitment to remain open, responsive, continually engaging our customers and maximizing our resources, we are confident that Forte Oil Plc will attain its vision of being the foremost integrated solutions provider in Nigeria,” Akinfemiwa assured.
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