Apprehension is said to be building up as stakeholders of Forte Oil Plc meet next week Monday for the company’s Annual General Meeting (AGM). As always, a lot of issues will be discussed during the meeting, a lot of which will focus on Forte Oil’s proposed business restructuring.
Forte Oil had earlier this month disclosed plans to refocus its business model, a move that will, among other things entail shutting down its unprofitable ventures in Ghana. The proposed divestment in its Ghana operations is aimed at enabling the company to concentrate on the Nigerian market where it is currently the leading distributor of refined petroleum products.
Meanwhile, even though the move may be in the interest of the company, it may not be an easy decision for its shareholders come Monday. Already, reports indicate that the shareholders have expressed missed feelings about the move, with some approving and others disapproving. Events on Monday will determine which way the company goes.
In the meantime, it seems Forte Oil Plc is determined in its efforts to return to profitability. Its revenue and profits in recent years have already begun to show considerable improvement. Although its 2017 revenue declined by 12% (standing at about ₦129 billion as against ₦148 billion recorded in the preceding year), its profit after tax had risen to ₦12.2 billion; up from ₦2.89 billion in 2016.
Meanwhile, figures from its recently released Q1 2018 financial result shows an 18% increase in revenue from ₦33 billion recorded in Q1 2017 to ₦39 billion in 2018. Profit after tax also increased from ₦1.8 billion in Q1 2017 to ₦2.9 billion in Q1 2018.
Originally known as British Petroleum, the company was founded in 1964 and became a publicly traded company in 1978. The company has over the years undergone a series of ownership changes until 2010 when its new owners rebranded it to be Forte Oil Plc. Its shares are currently trading at ₦40.70 in today’s NSE session.