In an exclusive tweet chat yesterday with Nairametrics, Mr Akin Akinfemiwa Group CEO of Forte Oil Plc discussed several issues relating to his company, the power sector, entrepreneurship and his favourite musicians. in case you missed the thread, here’s a link.
Hi tweeps welcome to our tweet chat with @Akin_Akinfemiwa the CEO of @ForteOilNg.
The thread starts here
— Ugodre (@ugodre) July 24, 2017
You can follow the conversation by searching for the hashtag #FOCeoConvo on Twitter. He also revealed that the company would launch mobile solar power solutions by September 2017.
The next step after this would be to replace the diesel generators and provide emission-free energy solutions for the manufacturing sector
— Akin Akinfemiwa (@Akin_Akinfemiwa) July 24, 2017
Chairman of the company, Femi Otedola had earlier hinted on the company’s diversification plans in his interview with Forbes Africa last year. Total Nigeria in 2015, embarked on a pilot scheme for mobile solar solutions for homes. In addition, the company is also powering some of its petrol stations with solar energy.
According to him, the company is looking to replacing the predominant use of diesel powered generators with emission free energy solutions that according to him will push away the reliance on smaller generators popularly called “I better pass my neighbour”.
What does this mean for the company ?
Diversifying into solar energy solutions provides another source of revenue for the company. It also means they will not be caught unawares if crude oil prices should drop further. While Nigeria may be a bit behind in adoption of solar energy solutions, increasing investments in the sector means costs will come down. Nigeria has an acute power problem with most parts of the country running on generators for a greater proportion of the day.
This could also create another revenue stream for the company which currently relies on petroleum products for over half of its revenues. A tilt towards affordable alternative power also gives it access to a large retail base, who are currently underserved in the power sector.
Why are oil companies moving into alternative energy ?
The move by oil companies into alternative energy is a global one. Oil prices are forecast to trend lower due to the abundance of shale oil and the falling peak demand from countries. Automobile companies are increasingly focusing efforts on producing electric cars, a move that would also reduce demand for petrol and other fossil fuels. Chevron, is the world’s largest private producer of geothermal energy.
Forte Oil shares closed at N57.50 yesterday the Nigerian Stock Exchange (NSE) down 32% year to date. It’s share price is currently up 9.5% as at noon July 25th, 2017.
