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Tag: Forte Oil

  • Forte Oil declares N1.5b interim dividend

    The board of directors of Forte Oil Plc has earmarked about N1.5 billion as interim cash dividend to shareholders of the indigenous oil and gas group.

    In a circular yesterday, the board indicated that shareholders on the register of the company as at the close of business on Monday June 3, 2019 will receive interim dividend per share of N1.15. The interim dividend will be paid through e-dividend on June 10, 2019.

    The interim dividend might be from the proceeds of the recent divestments by the oil and gas group.

    Forte Oil recently indicated that it had entered into share sale and purchase agreements to sell its power and upstream businesses in continuation of complicated divestment programme involving the major shareholder and chairman of board of director, Mr. Femi Otedola.

    In a regulatory filing at the Nigerian Stock Exchange (NSE), Forte Oil stated that it had entered into share sale and purchase agreement with Calvados Global Services Limited for the sale of its power distribution company, Amperion Power Distribution Company Limited.

    Forte Oil had also entered into share sale and purchase agreement with Gbonka Oil and Gas Limited for the divestment and sale of its shares in Forte Upstream Services Limited.

    The two new agreements came as the indigenous energy group confirmed that it had concluded divestment of its shares in AP Oil and Gas Ghana Limited to Cobalt International Services (Ghana) Limited.

    Forte Upstream Services Limited, AP Oil and Gas Ghana Limited are wholly-owned subsidiaries of Forte Oil while the indigenous energy group holds majority equity stake of 57 per cent in Amperion Power Distribution Company Limited. Amperion Power Distribution Company Limited holds the majority equity stake in the lucrative Geregu Power Plc.

    General Counsel, Forte Oil, Mr. Akinleye Olagbende, stated that the two new share purchase and sale agreements were however subject to the fulfilment of relevant conditions as specified in the respective agreement, including obtaining relevant contractual and regulatory approvals.

    In February 2019, shareholders of Forte Oil had approved major resolutions authorising the sale of the company’s subsidiaries to Mr Femi Otedola, the majority core investor in the company. Otedola holds 75 per cent majority equity stake in Forte Oil.

    At the Extra Ordinary General Meeting (EGM) in Lagos, shareholders approved a resolution authorising the company to enter into discussions with Otedola or any company representing him in connection with assets to be divested.

    In the recent regulatory filing, the company was however silent on the relationship between the bidding companies and Otedola. Global search for identities of both Calvados Global Services Limited and Gbonka Oil and Gas Limited did not provide any links to the companies. A market source said the two companies might be newly incorporated firms or special purpose vehicles formed for the purpose of the acquisitions.

    Otedola had also in December 2018 announced that he planned to sell his 75 per cent majority equity stake in Forte Oil to Prudent Energy. The December 2018 announcement came after shareholders had in May 2018 approved a restructuring plan pushed by Otedola-led board of directors aimed at restructuring the group’s operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana.

  • Forte Oil offers power, upstream businesses for sale to unknown firms

    Forte Oil Plc has entered into share sale and purchase agreements to sell its power and upstream businesses in continuation of complicated divestment programme involving its major shareholder and Chairman, Mr. Femi Otedola.

    In a regulatory filing at the Nigerian Stock Exchange (NSE) at the weekend, Forte Oil stated that it has entered into share sale and purchase agreement with Calvados Global Services Limited for the sale of its power distribution company, Amperion Power Distribution Company Limited.

    Forte Oil has also entered into share sale and purchase agreement with Gbonka Oil and Gas Limited for the divestment and sale of its shares in Forte Upstream Services Limited.

    The two new agreements came as the indigenous energy group confirmed that it had concluded divestment of its shares in AP Oil and Gas Ghana Limited to Cobalt International Services (Ghana) Limited.

    Forte Upstream Services Limited, AP Oil and Gas Ghana Limited are wholly-owned subsidiaries of Forte Oil while the indigenous energy group holds majority equity stake of 57 per cent in Amperion Power Distribution Company Limited. Amperion Power Distribution Company Limited holds the majority equity stake in the lucrative Geregu Power Plc.

    General Counsel, Forte Oil, Mr. Akinleye Olagbende, stated that the two new share purchase and sale agreements were however subject to the fulfilment of relevant conditions as specified in the respective agreement, including obtaining relevant contractual and regulatory approvals.

    In February, this year, shareholders of Forte Oil approved major resolutions authorising the sale of the company’s subsidiaries to Mr Femi Otedola, the majority core investor in the company. Otedola holds 75 per cent majority equity stake in Forte Oil.

    At the Extra-Ordinary General Meeting (EGM) in Lagos, shareholders approved a resolution authorising the company to enter into discussions with Otedola or any company representing him in connection with assets to be divested.

    In the weekend’s regulatory filing, the company was however silent on the relationship between the bidding companies and Otedola. Global search for identities of both Calvados Global Services Limited and Gbonka Oil and Gas Limited did not provide any links to the companies. A market source said the two companies might be newly incorporated firms or special purpose vehicles formed for the purpose of the acquisitions.

    Otedola had also in December 2018 announced that he planned to sell his 75 per cent majority equity stake in Forte Oil to Prudent Energy. The December 2018 announcement came after shareholders had in May 2018 approved a restructuring plan pushed by Otedola-led board of directors aimed at restructuring the group’s operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana. Shareholders had authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.

    In the explanatory statement on the Forte Oil-Otedola divestment deal, the company had indicated that the highly lucrative Geregu Power Plc was the immediate focus of Otedola’s acquisition. However, the resolutions at the EGM broadly covered all assets under divestment.

    In an explanatory statement signed by Olagbende, the company explained that Otedola showed interest in acquiring the Geregu Power Plc after a public tender sale organised by the board failed to produce acceptable offer.

    According to the statement, upon review of the tender sale process, the management of the company saw unexpectedly low interest in the bidding process while the offers were below expectation and the bidders unable to demonstrate adequate financing capability and capacity.

    The statement assured that the sale process to Otedola, who abstained from voting yesterday, would be subjected to rigourous scrutiny by management and independent financial adviser to ensure that the terms are based on normal commercial terms and not prejudicial to the interests of the company and its shareholders.

    The company stated that the divestment would provide adequate funding for additional investment in its downstream business.

    “The proceeds of this restructuring exercise will enable your company to compete more favourably and achieve its planned expansion objectives within the downstream subsector. This will also reduce our finance cost significantly and increase distributable earnings for the benefit of our shareholders,” the company stated.

    Chairman and majority shareholder,  Otedola had in December 2018 announced that he had reached preliminary agreement to sell his entire 75 per cent majority equity stake in the company.

    Forte Oil confirmed that Otedola was selling his “full 75 per cent direct and indirect shareholding in the company’s downstream business”. The downstream business accounts for more than three-quarters of the Forte Oil Group, although the power generation business has consistently delivered higher margins.

    Olagbende stated that Otedola was divesting his majority equity stake to Prudent Energy team, which would be investing through Ignite Investments and Commodities Limited.

    According to the company, Otedola’s divestment from the downstream business is pursuant to his decision to explore and maximize business opportunities in refining and petrochemicals. Otedola is a close friend of Alhaji Aliko Dangote, Africa’s richest man, whose multi-billion Naira refinery is billed to commence operations within the next 25 months.

  • Fire guts Forte Oil petrol station at Lagos Airport

    Forte Oil petrol station besides the Domestic Police Station, Murtala Muhammed Airport, Lagos  has been gutted by fire.

    The incident triggered anxiety among passengers, motorists and passersby along the busy Ikeja-Airport Road.

    Thick smoke billowing from the petrol station filled the skyline occasioning heavily vehicular movement along the Airport Road.  Scores of road users took to their heels to avoid being caught in possible conflagration as the huge flakes of smoke was seen as far as the Mafoloku axis of the Airport Road and other parts of the metropolis.

    But as at the time of writing this  report ,the cause of the fire was  still unknown.

    An eye witness said  the fire started about 2.10pm

    He added that already fire fighters from both the Federal Airports Authority of Nigeria (FAAN) and Lagos State Fire Service battled  to put the fire under control.

    The eye witness said that the firemen have been able to prevent the fire from affecting other building close to the razed Forte Oil Petrol Station

    As at 2.300pm thick smoke was still coming out from the burnt petrol station and it also enveloped the area where the filling station is located

    The  development has further caused gridlock on the ever-busy Murtala Muhammed Airport (MMA), Lagos Access Road.

  • Nestle, Unilever, Nigerian Breweries dominate bears on NSE

    Activities on the Nigerian Stock Exchange (NSE) for the third consecutive day on Wednesday closed on a negative trend, with Nestle leading the laggards’ table.

    Nestle, one of the highly capitalised equity, topped the losers’ chart with a loss of N10 per share to close at N1,500 per share.

    Unilever trailed with a loss of N3.75 to close at N51.25, while Nigerian Breweries lost N2.90 to close at N111 per share.

    Forte Oil was down by N2.90 to close at N26.10, while Conoil dropped by N2.50 to close at N27.50 per share.

    Consequently, the All-Share Index which opened at 37,499.07 shed 106.05 points or 0.28 per cent to close at 37,605.12.

    Also, the market capitalisation lost N38 billion or 0.28 per cent to close at N13.584 trillion compared to N13.622 trillion recorded on Tuesday.

    On the other hand, Eterna Oil led the gainers’ table for the day, increasing by 50k to close at N7 per share.

    Guaranty Trust Bank followed with a gain of 40k to close at N40, while Zenith International Bank added 30k to close at N24.30 per share.

    Read Also: NSE indicators rebound by 0.17%

    FCMB Group advanced by 20k to close at N2.28, while Dangote Cement Industries also grew by 20k to close at N223 per share.

    However, the volume of shares traded rose by 96.49 per cent, while the value increased by 18.11 per cent.

    Specifically, investors bought and sold 505.74 million shares valued at N3.13 billion exchanged in 3,354 deals, as against 257.39 million shares worth N2.65 billion in 3,932 deals on Tuesday,

    Multiverse was the most active stock for the day, trading 200.04 million shares worth N40.01 million.

    NAHCO followed with an account of 125.09 million shares valued at N747.33 million, while Guaranty Trust Bank traded 28.42 million shares worth N1.13 billion.

    Access Bank sold 18.91 million shares worth N195.44 million, while FCMB Group exchanged 13.91 million shares valued at N30.83 million.

    NAN

  • Shareholders approve Forte Oil’s assets sales

    Shareholders of Forte Oil Plc have approved the company’s plan to restructure its operations by divesting from its upstream services and power generating businesses and the sale of its downstream business in Ghana. Forte Oil plans to streamline its operations and focus on its Nigerian downstream marketing business.

    At the Annual General Meeting (AGM) in Lagos, shareholders authorised the board of the company to sell its stakes in Forte Upstream Services Limited, Amperion Power Distribution Limited and AP Oil & Gas Ghana Limited.

    The meeting mandated the board of directors to invest the net proceeds from the divestments in the downstream marketing business.

    AP Oil & Gas Ghana Limited and Forte Upstream Services Limited are wholly owned subsidiaries while Forte Oil owns 57 per cent equity stake in Amperion Power Distribution Company Limited.

    Forte Oil Plc Chairman, Mr Femi Otedola said the restructuring was aimed at ensuring sustainable growth and returns to shareholders.

    “We concluded on focusing our resources on our core competence, and streams of uninterrupted dividends for our shareholders,” Otedola said.

    Key extracts of the audited report and accounts for the year ended December 31, 2017 showed that group turnover dropped from N148.61 billion in 2016 to N129.44 billion in 2017. Gross profit increased from N20.58 billion to N24.12 billion. Operating profit rose from N9.62 billion to N14.26 billion. Profit before tax doubled from N5.34 billion in 2016 to N10.63 billion while profit after tax jumped from N2.89 billion in 2016 to N12.23 billion in 2017.

    Underlining the rationales for the strategic business change, Forte Oil had said its decision to divest from upstream services and power generating businesses will boost its distributable earnings for the benefit of shareholders.

    According to the company, following the significant changes in the oil and gas industry in recent years, only downstream operators with huge investments in both storage and distribution infrastructures can remain competitive and operationally efficient in the long run.

    Forte Oil noted that that although the power business profitable,  it has  huge receivables due from the Nigeria Bulk Electricity Trading Plc (NBET) and a significant portion of its distributed earnings is also utilised in servicing the acquisition debt finance.

    The company said despite the significant resources deployed  the upstream services business has consistently contributed less than  seven  to the Group earnings in the last three financial years.

    Similarly, its downstream subsidiary in Ghana has consistently declared losses after tax in the last three years and   has substantial bad and uncollectable trade debts in the business as a result of negative economic conditions and currency devaluation in prior years.

    “This divestment a will reduce finance cost in the Group significantly and increase distributable earnings for the benefit of the shareholders. The finance cost attributable to the businesses to be divested stood at N2.7 billion and N2.2 billion for the year ended 31st December 2016 and the year ended 31st December 2017. The proceeds of the divestment initiative will also enable your company to compete more favourably and achieve the planned expansion of the business for increased market share,” Forte Oil said.

  • Forte Oil, Chevron partner on Texaco lube brand

    Forte Oil Plc, has sealed a partnership agreement with Chevron Lubricants, Europe, Middle East and Africa. The agreement empowers Forte Oil to exclusively deal on Texaco – branded lubricants and engine, which will be made available at all Forte Oil retail outlets across the country.

    Chevron Lubricants is the owner of the Texaco brand and the partnership with Forte Oil will open new opportunities for Nigerian motorists to purchase the high quality engine oil.

    From its strategic manufacturing hubs, the Texaco – branded lubricants and engine oil, will be supplied to Forte Oil filling stations network across the country.

    Chevron Lubricants General Manager, Mr. Stewart Wright, who stated this at the launch of the items,  said: “We are delighted that with this agreement, motorists across Nigeria will have added choice when buying quality engine oil. It is excellent news that our Texaco-branded lubricants are now so widely available and are here to stay in Nigeria.”

    Forte Oil’s Head of Marketing, Mr. Kenneth Otaru, said at the event that the collaboration with Chevron Lubricants will allow Nigerian motorists enjoy a wider selection of engine oil and lubricants, assured of the quality guaranteed by both the Forte Oil and Texaco brands.

    “This is an exciting time for the downstream market and for the consumer. Forte Oil is pleased to join in this initiative to ensure the best available products are located at every Forte Oil filling station,” Otaru, said.

  • Forte Oil mulls sale of upstream assets

    • Firm to quit Ghana

    Nigerian energy firm, Forte Oil,  said it plans to sell its upstream services and power businesses in Nigeria and divest from Ghana to focus on its core fuel distribution operation at home.

    The move comes as a surprise about-turn for a company whose Chief Executive Akin Akinfemiwa told investors in Lagos in August that he wanted to aggressively pursue M&A opportunities along the energy value chain and acquire marginal oilfields to boost its upstream business.

    The company, majority owned by billionaire Femi Otedola, had also been in talks with a major refinery to form a strategic partnership for local refining of petroleum products.

    Forte Oil’s share price plunged 49 per cent last year after the company struggled to get hard currency to import products. It now has a total market value of N57.3 billion ($188 mln) but gave no indication yesterday of how much the businesses for sale might fetch.

    It said interest costs attributable to the businesses to be sold stood at N2.2 billion as of December. It now plans to seek shareholder approval for the sale on May 23 and appoint advisers, it said in a notice to investors.

    Forte Oil did not give a reason for the change in direction but said the downstream sector in Nigeria had gone through changes in recent years and was expected to evolve further.

    It added that the industry has operated under a tightly regulated fixed margin but could be deregulated especially given its impact on the Nigerian currency and import bill.

    The government increased petrol prices by 67 per cent to N145  in 2016 to cut subsidies paid for fuel imports after a plunge in oil prices hit state revenues,  caused dollar shortages and halted infrastructure projects with firms laying off tens of thousands of workers.

    However, the hike did not prevent gasoline shortages which have plagued Nigeria for much of last year and this year.

    Nigeria’s existing and ageing refineries have a daily domestic refining capacity of 6 million liters, while the daily consumption stands at 35 million liters, so the country has to import the bulk of what it consumes.

    Forte Oil has two storage depots, five aviation fuel depots and a lubricant blending plant. It also has 100 trucks for distribution of products across its more than 500 retail outlets which would require a lot of capital to expand.

    Its 57-per cent owned power unit, Amperion Power Distribution Company, has a lot of receivables due from the state-backed offtaker and its upstream unit has contributed less than seven per cent to group earnings over the past three years.

    The unit in Ghana has declared losses over the last three years and has uncollectible trade debts due to tough economic conditions and a currency devaluation in the cocoa-rich country.

    Forte Oil said proceeds from the divestment would be used to expand its downstream fuel distribution business and to invest in storage infrastructure.

     

     

     

     

  • Femi Otedola demonstrates love for mum

    Femi Otedola demonstrates love for mum

    For billionaire owner of Forte Oil, Femi Otedola, there is no place like home. And home, to him, is not any of his multi-billion naira mansions scattered around the world or any of his businesses that are raking in millions on a daily basis. Home is the feeble but welcoming arms of his mother within which he can always find warmth and comfort.

    Otedola is a “Mummy’s boy” and he is damn proud to be so called. The wealthy head honcho of Forte Oil walking arm in arm with his mother, Lady Doja Otedola, through the family’s Odoragunshin community in Epe Local Government Area, Lagos State, is always a sight to behold. It is like the umbilical cord has not been broken as Otedola treats his mum like a fragile piece of rare historical artefact that must be handled with care and treasured beyond words.

    Lady Doja, widow of Sir Michael Otedola of blessed memory and first lady of Lagos State in the Third Republic, still treats Femi like a kid, even though he already has adult children of his own. The tie between them is one that transcends age and the vagaries of time and circumstance. Whether it be taking her out for expensive shopping or for overseas vacations or planting a chaste kiss on her lips in a powerful statement of her significance, Otedola certainly knows how to take care of his mum.

  • Forte Oil expands business into solar energy

    Forte Oil expands business into solar energy

    An integrated indigenous oil firm, Forte Oil Plc, has expanded operation into the renewable energy with the inauguration of its solar energy solution tagged ‘Green Energy’ solution.

    Speaking during the launch, its Group Chief Executive Officer (GCEO), Mr. Akin Akinfemiwa, said: “We are foremost integrated energy provider with footprints across the value chain of the energy sector including upstream, downstream and power generation. Today, that we are launching our solar system, we always look for formidable partners to bring our vision to fruition.

    “We sat with our partners and created bespoke solutions and achieved sustainable, reliable and cost-effective solar solutc ion. The solution is mobile, cost effective and devoid of service charge.”

    He said it is very efficient and is targeted at medium income group that rely on generators to provide power.  “We will design an array of energy solution,” he said.

    Forte Oil’s Group Chief Financial Officer (GCFO), Mr. Julius Omodayo-Owotuga, said: “The solar energy solution comes with four panels, four 100 amps, 12 volts batteries with free installations. It will cost N700,000 per unit and wholesalers will be entitled to discounts depending on the number of units purchased.”

    He further said the product has a year warranty while the panels have 20-25 years lifespan.

    The Lagos State Commissioner for Energy and Mineral Resources, Mr. Olawale Oluwo, said: “The partnership and introduction of the energy solutions came at a time when Lagos State Government is targeting 3000 megawatts (MW) of power dedicated to Lagos State alone, which will be off-grid and independent of Niger Delta gas. It is complementary to what we are doing and we will give it the necessary support.

    “We will key into the solar energy solution by Forte Oil which is very vital to our programme and now that Forte Oil has put its brand to solar, we are now sure that we have a reliable partner in solar energy.”

  • Forte Oil suspends N20b offer

    Forte Oil suspends N20b offer

    The board of directors of Forte Oil Plc has decided to suspend the energy group’s bid to raise new equity funds. Forte Oil had earlier secured regulatory approval to float a supplementary capital raising through a book building.

    Company Secretary, Forte Oil, Akin Olagbende, in a statement released at the Nigerian Stock Exchange (NSE), stated that the board had taken a strategic decision to put the offering on hold pending the conclusion of an ongoing corporate restructuring.

    According to him, the company is currently exploring opportunities to maximize emerging opportunities in the Nigerian energy sector, which will be to the ultimate benefit of all stakeholders.

    Forte Oil had started the book building for its N20 billion offer for subscription with main consideration for qualified institutional investors and high net worth individual investors.

    Forte Oil had planned to raise N20 billion in new equity funds under its new capital raising, after it successfully raised N9 billion in debt issue. The indigenous energy company has approval to raise up to N71 billion under a N100 billion capital raising programme approved by the shareholders of the company.