Forte Oil Plc has reiterated its resolve to hit N11 billion target in Profit Before Tax (PBT) for 2016, even as the firm is currently projecting a market share of 20 per cent in short to medium term basis.
Besides, the firm also unveiled plans to raise additional capital from the stock market to boost operations.The company, which is currently at N4.2 billion PBT, is hinging its projection and confidence of impressive performance for 2016 in company’s involvement in crude oil lifting, especially the completion of the major overhaul and increase in the capacity of Geregu power plant to 435 megawatts.
The Group Chief Executive Officer of the company, Akin Akinfemiwa, while addressing stockbrokers during the company’s ‘Facts Behind the Figures’ in Lagos on Wednesday, explained that the overhaul is expected to impact positively on its operating margin and boost its profitability in the second half of the year.
“We are currently at N4.2 billion PBT in the first half because we have only one turbine running but in the second half of the year, we would have our three turbines running and we may even surpass our budget of N11 billion PBT. But we are sure of attaining the budget.”
The Forte Oil boss said the company’s diversification from downstream player to an integrated energy solution provider underpins the firm’s medium and long-term strategy to drive future profitability.
According to him, the company would deepen its focus on high margin products such as lubricant, exploit LPG business particularly LPG retailing and bottle refilling, optimize and expand the Geregu power plant asset.
Other areas of focus, according to Akinfemiwa includes introducing new products offerings such as solar solutions, harnessing partnership with convenience stores, diversifying into high marginal related business among others.
He assured shareholders that the company has effectively identified the risk factors that could affect its business operations, adding that it has put measures in place to mitigate these risks.
The company for the half-year ended June 30, 2016 posted revenue of N84.48 billion against N61.17 billion achieved in the corresponding period of 2015.PBT stood at N4.25 billion in contrast with N3.26 billion in the preceding period, indicating an increase of 31 per cent.Profit after tax rose to N3.11 billion from N2.53 billion recorded in the comparative period of 2015.
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