Forte Oil to Upgrade Geregu Power With N14.40 Billion Investment

gas plant

Forte Oil Plc has disclosed plan to commit N14.40billiion (about $90 million) in overhauling its recently acquired Geregu Power Plant, GPP, to fully achieve the 414 mega watts installed capacity of the plant.

Speaking at the company’s ‘Facts behind Figure’ on the Nigerian Stock Exchange, NSE, the Group Managing Director/CEO, Forte Oil Plc, Mr. Akin Akinfemiwa, said the contract for upgrading of the GPP had since been awarded

He said that the company is also exploring the possibility of diversifying into the upstream sector of the oil and gas industry through profitable acquisition of upstream assets.

According to him, it would enter into strategic alliance with partners with whom to share the inherent risk in the investment, adding that the company has already identified potential partners for that purpose.

He, however, stated the company would mange its entry into the upstream space carefully due to the level of investment involved, including the financial and technical expertise required.

Alternatively, Akinfemiwa stated that its diversification into the upstream space might require the acquisition of set of marginal oil fields and putting them back to operation

He added that Forte Oil intends to achieve market dominance through the expansion of its retail infrastructure, commercial business and improvement in its non-fuel revenue, saying, “We have an aggressive expansion plan and we will acquire stations where we have the market, specifically within regions of 3Km and in densely populated areas.

“The expansion plan is a continuous exercise; it has no definitive timeline. It is something we will keep doing; we will capture the opportunity as they come and we will continue to do that.”

“We will acquire and lease retail outlets because we believe that we can make money through that. We want to make Forte Oil a one-stop-shop for all our customers’ needs. Therefore, any space we in our retail outlets will be fully utilised,” he added.

The Forte Oil boss stated that the company would further strengthen its corporate governance structure as this would give investors the confidence to invest in the company.

Speaking on the half year financial result where the company posted 152 percent surge in profit before tax to N4.19 billion compared to N1.66 billion recorded in H1 2013 and 33 percent increase in gross earnings to N79.61 billion compared to N59.96 billion recorded in the same period in 2013, he stated that the achievement was made possible through the three-year transformation programme initiated by the Board of Directors in 2011, adding that the transformation initiative was focused on repositioning the company as a market leader.

Forte Oil Plc has disclosed plan to commit N14.40billiion (about $90 million) in overhauling its recently acquired Geregu Power Plant, GPP, to fully achieve the 414 mega watts installed capacity of the plant.

Speaking at the company’s ‘Facts behind Figure’ on the Nigerian Stock Exchange, NSE, the Group Managing Director/CEO, Forte Oil Plc, Mr. Akin Akinfemiwa, said the contract for upgrading of the GPP had since been awarded

He said that the company is also exploring the possibility of diversifying into the upstream sector of the oil and gas industry through profitable acquisition of upstream assets.

According to him, it would enter into strategic alliance with partners with whom to share the inherent risk in the investment, adding that the company has already identified potential partners for that purpose.

He, however, stated the company would mange its entry into the upstream space carefully due to the level of investment involved, including the financial and technical expertise required.

Alternatively, Akinfemiwa stated that its diversification into the upstream space might require the acquisition of set of marginal oil fields and putting them back to operation

He added that Forte Oil intends to achieve market dominance through the expansion of its retail infrastructure, commercial business and improvement in its non-fuel revenue, saying, “We have an aggressive expansion plan and we will acquire stations where we have the market, specifically within regions of 3Km and in densely populated areas.

“The expansion plan is a continuous exercise; it has no definitive timeline. It is something we will keep doing; we will capture the opportunity as they come and we will continue to do that.”

“We will acquire and lease retail outlets because we believe that we can make money through that. We want to make Forte Oil a one-stop-shop for all our customers’ needs. Therefore, any space we in our retail outlets will be fully utilised,” he added.

The Forte Oil boss stated that the company would further strengthen its corporate governance structure as this would give investors the confidence to invest in the company.

Speaking on the half year financial result where the company posted 152 percent surge in profit before tax to N4.19 billion compared to N1.66 billion recorded in H1 2013 and 33 percent increase in gross earnings to N79.61 billion compared to N59.96 billion recorded in the same period in 2013, he stated that the achievement was made possible through the three-year transformation programme initiated by the Board of Directors in 2011, adding that the transformation initiative was focused on repositioning the company as a market leader.

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