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Nairaland Forum / Nairaland / General / Business / Forte Oil To Sell Nigerian Assets, Exit Ghana (19264 Views)
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Forte Oil To Sell Nigerian Assets, Exit Ghana by Truth234(m): 3:52am On May 03, 2018 |
Forte Oil has 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, according to a report by Reuters on Wednesday. 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 mergers and acquisition opportunities along the energy value chain, and acquire marginal oilfields to boost its upstream business. The company, majority owned by billionaire, Femi Otedola, has 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 by 49 per cent last year after the company struggled to get hard currency to import products. It now has a total market value of N57.3bn but gave no indication on Wednesday of how much the businesses for sale might fetch. It said interest costs attributable to the businesses to be sold stood at N2.2bn 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 had 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 fuel 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 six million litres, while the daily consumption stands at 35 million litres, 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 will 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 off-taker 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. http://investorsking.com/forte-oil-sell-nigerian-assets-exit-ghana/ 3 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by GrandMufti: 4:19am On May 03, 2018 |
Ok |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by sykeng(m): 5:01am On May 03, 2018 |
Ok |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by MANNABBQGRILLS: 5:02am On May 03, 2018 |
All the best Baba Cuppy! 9 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Nobody: 7:37am On May 03, 2018 |
Ok |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by BedLam: 7:38am On May 03, 2018 |
That is what happens when you are not innovative just like most other Nigerian businesses like Dangote and Globalcom. These guys just rake in analogue money with no innovation on their side. After many years, these people can't drill oil. We still use Foreign companies to drill our own oil. Meanwhile China the world's largest importer of oil has one of the biggest Oil companies in the world. You hear of Gazprom of Russia, Saudi Aramco and you wonder what we are doing in this part of the world. The future will tell. I'm sure one day, cement won't be tasting this sweet. 51 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Flokey: 7:38am On May 03, 2018 |
Buhari body odour has done it again 7 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by IsaAbubakar: 7:38am On May 03, 2018 |
Buhari is a terrorist 2 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by emmyid(m): 7:38am On May 03, 2018 |
I wish I could comment. But I don't have anything reasonable to say here because it's talking about business and investment. I hope one day I can boost of being among the top investors in the country, so such news will matter to me. For Now- this land is not for sale. Beware of Chidi my son! 3 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by emmy4lov(m): 7:38am On May 03, 2018 |
Sounds terrific to me .. this Baba regime is just killing business.. Urgent sale, samsung galaxy S6 with accessories. WhatsApp 08050447106 2 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Omololu2121: 7:38am On May 03, 2018 |
Lol |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by cbrezy(m): 7:38am On May 03, 2018 |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by lordcabasa(m): 7:39am On May 03, 2018 |
Another casualty of President Buhari's unproductive body language. 6 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by mamaafrik(m): 7:39am On May 03, 2018 |
come build a Refinery,in that way you can compete with mr. monopoly. 1 Like |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by unitysheart(m): 7:39am On May 03, 2018 |
Hmmm. Thoughtful of Forte Oil. 1 Like |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by 40ng: 7:40am On May 03, 2018 |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by unitysheart(m): 7:40am On May 03, 2018 |
lordcabasa: Na Buhari also cause the tough economy in Ghana abi. Continue o. 8 Likes 2 Shares |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by slimfit1(m): 7:40am On May 03, 2018 |
People are looking at renewable energy these retards are still chasing these old energy. 2 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by kayDooo(m): 7:41am On May 03, 2018 |
Baba cuppy plz don't go nahw. We love u] |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by IMASTEX: 7:41am On May 03, 2018 |
History will continue judge all those leaders "past and present" for mortgaging the days of excess in line with oil boom. Meanwhile, some persons still fails to look into the future without oil. Until the worse happens. Even agriculture is been given lip service. Those that still encourage themselves to farm crops have cattle's to contend with. It is a shame! 1 Like |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by PassingShot(m): 7:41am On May 03, 2018 |
IsaAbubakar:Frustrated Shiite? 2 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Flokey: 7:42am On May 03, 2018 |
Nothing good comes out of the name buhari |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by joedams: 7:42am On May 03, 2018 |
I'm sure you didn't read the body of the post lordcabasa: 4 Likes 2 Shares |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by northvietnam(m): 7:42am On May 03, 2018 |
When all ur kids know best to do is just waste/flaunt ur money online... fly men private jet. Davido is making his own money while cuppy and the 6ters r liquidating their old mans finace 1 Like |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by zeestunner(m): 7:43am On May 03, 2018 |
Otedola and dangote arrangement one will refine the other distribute 7 Likes |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by BedLam: 7:44am On May 03, 2018 |
lordcabasa:These guys are not innovative. Too archaic in their reasoning and they always fail to test fresh waters. 3 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Nobody: 7:44am On May 03, 2018 |
Haha this kind of news for nairaland front page of today? You’ll only get dumb comments. Nairaland’s home to the dogs. Anyway, how is the stock exchange in Nigeria doing? Do we really have investors trading on this equities? 3 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by bettercreature(m): 7:44am On May 03, 2018 |
zeestunner:He is probably plaining to build his own |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by davodyguy: 7:45am On May 03, 2018 |
Things are hard these days for everyone. We know MOMAN to be MRS, Forte Oil, 11PlC(Mobil) and Oando. Non of them bring in refined products cos they'll be running at a loss. Major challenge came when all prices fell. Even Mobil Nigeria (MON) was sold partly to NIPCO in 2016. The hustle is very real 1 Like |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by budusky05(m): 7:46am On May 03, 2018 |
For like buy |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by davodyguy: 7:46am On May 03, 2018 |
mctolspell:They only understand BBN and Davido. Many of them have zero economic sense. Buhari was right afterall 4 Likes 1 Share |
Re: Forte Oil To Sell Nigerian Assets, Exit Ghana by Nobody: 7:48am On May 03, 2018 |
As much as I agree with you, Gazprom and the likes had issues too when the oil price was low. Ask Angola, they still in recession. Most of this companies are one man owned though they are traded on the stock exchange.. they just enjoy the goodies(corruption in their own way) from any government in power. Not the right way of doing business. BedLam: |
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