Forte Oil plc

From Benjamin A Ameh, Lagos

The investment in power sector as part of business growth strategy to diversify from its primary business of petroleum products marketing into related high margin business

The Nigerian Stock Exchange (NSE) announced December 31, 2013 the admission of Forte Oil PLC, (formerly AP PLC) Nigeria’s foremost indigenous major marketer of refined petroleum products and Transnational Corporation of Nigeria PLC have been enlisted into the NSE 30 Index, a league of the Exchange’s most capitalized stocks, thereby commencing the new year as one of the elite stocks in one of Africa’s most viable bourses.

The NSE in February 2009 began publishing a new index called the NSE 30 index in terms of market capitalization and liquidity with the primary objective of providing an investable benchmark to capture the performance of the Nigerian Stock market.

NSE stakeholders and analysts have attributed the two listed companies exemplary price appreciation and growth on the Exchange to the companies’ incremental performances in 2013 and their investments in the Nigeria’s power sector which may have been seen by many as the next nexus of growth in the Nigerian economy.

Furthermore, the Forte Oil plc have  successfully acquired 414 megawatt Geregu Power Plant in Kogi State under the Federal Government-led privatization of public power assets, which  seeking to carve a niche in the power generation sector while Transcorp acquired Ughelli Power in Delta State within the same period .

The Forte Oil Company embarked on a Transformation Programme two years ago targeting the investment in power sector as part of its business growth strategy to diversify from its primary business of petroleum products marketing into related high margin business such as upstream exploration and production, etc that would guarantee continued increase in shareholder value.

The forte oil plc Group declared N3.2bn Profit-Before-Tax In its 2013 in Third Quarter Results with 258% increase compared to N0.9 billion in 2012.

In the same vein, board of directors of the company has also declared a Profit-After-Tax of N2.7 billion in 2013 compared to N0.7 billion with increased 317% delivered same period in 2012, while revenue showed high performance of 29% growth to close at N92 billion as against N71billion recorded in 2012.

In Overall, Forte Oil PLC’s profitability outperformed its third quarter projection of N2.6 billion profits after tax, whilst the N92bn revenue recorded in Q3 2013 also surpassed the N78bn expected in the period under review, as the group pushed to regain market share.

Oando plc 

From Benjamin a ameh, lagos

The net proceeds from the transactions, is expected to be N29.73billion after minus the total cost of the placement, will be used partly to finance Oando Energy Resources’ purchase of ConocoPhillips Nigerian business and to meet working capital requirements.

Oando plc sub-Saharan Africa s leading integrated energy group has starts N30.7 billion fund raising process through a Special Placement (SP) of 2.047 billion ordinary shares of 50 kobo each at N15 per share.

The fund will comes from a strategic investor, which name was not disclose as core investor but approved at a completion board meeting held on Monday in Lagos also noted that the application to list for the shares will open  and close today.

The source further disclosed that the investor will apply for the shares through the issuing houses, led by Vetiva Capital Management Limited, with FBN Capital Limited and FCMB Capital Markets Limited acting as joint issuing houses.
Further investigation disclosed that the SP is still subject to the approval of the Securities and Exchange Commission (SEC).

In his remarks on the process, Group Managing Director/Chief Executive of Oando Plc, Mr. Wale Tinubu, said it represents another key milestone in the achievement of the company’s overall strategic re-focus.

Tinubu, stressed that a significant portion of the proceeds will be used to finance the closure of our upstream assets acquisition process; a transaction we believe will transform us into a major indigenous producer of oil in Nigeria. The inherent value to our esteemed shareholders is evident, as we look to grow our asset base and income streams, whilst at the same time enlarging the portion of revenue we are able to declare as profits, through the increased margins the upstream business offers us. We are excited about the future in store for our company, as 2014 will witness the culmination of all our efforts over the past 12 months, as we begin to reap the dividends of a carefully planned and executed strategy, he added.



the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke & The Bureau of Public Enterprises BPE, DG, Benjamin Dikki

From Benjamin A Ameh, Lagos

The four refineries in the country to goes through Privatisation process all  over again like NITEL

The Bureau of Public Enterprises (BPE) yesterday said it would privatise the four refineries in the country next year.
The bureau’s Head, Public Communications, Mr Chigbo Anichebe, told the News Agency of Nigeria (NAN) in Abuja, that the refineries’ privatisation was part of the ongoing oil sector’s reforms.

Last week, the Minister of Petroleum Resources, Mrs Diezani Alison-Madueke, had told Bloomberg TV Africa in London, that the country would privatise the  four refineries by the first quarter of next year.

Alison-Madueke disclosure was the second time the federal government would unfold plans to privatise its refineries.
President Olusegun Obasanjo had  approved the sale of the refineries during his administration but his successor, the late President Umaru Yar’Adua in 2007 reversed the sale of the refineries for lack of transparency in the transaction.
However, President Goodluck Jonathan in November 2012 recommended that the refineries should be sold due to inadequate financing and sub-optimal performance.

It is uncertain, however, if the federal government would take into consideration the right of first refusal which was granted business moguls, Aliko Dangote and Femi Otedola, who bought the Port Harcourt refinery in 2007, but was reversed by the late Yar’Adua.

Should the government factor this in the transaction, new prospectives bidders would have to contend with both of them.
But ahead of the proposed sale of the refineries, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has urged the federal government to repair them before privatisation.

Anichebe, nonetheless, said the privatisation plans were currently at the preliminary stage, where the blueprint of the policy would be decided.

“We are working with the Nigerian National Petroleum Corporation (NNPC) and Ministry of Petroleum Resources on the privatisation of the four refineries.

“We are just in the preliminary discussion with them and very soon, we will make public the work plan for the privatisation processes, including the engagement of advisers to advise us on the transaction.

“Once the work plan is fine-tuned, hopefully by the end of the year or early January next year, the work plan as well as the schedule will be unveiled to all stakeholders, including the media,’’ he said.

Anichebe explained that the privatisation would be handled in line with the usual strategy of the bureau, which was to sell a certain percentage of shares and reserve a certain percentage for the workers, host communities and Nigerians.
He urged Nigerians not to be apprehensive about the refineries’ sale because only capable and visionary investors would be considered in the privatisation process.

“People should not be edgy about this transaction because we have done this over and over again. When we first started with the telecommunications sector, people were worried that we will give it to the wrong people.

“They were worried about the security implications and all that. I believe that whether these companies end up with local, home-based or foreign investors, what is important is the efficiency of whoever is handling it.

“The criteria should be that the buyers have the financial muscle and technical know-how to run these companies. We don’t bother about where they come from, as long as they are coming with clean money to invest in our economy.

“So, when we are doing our evaluation of investors for the transaction, that is what we will look at,’’ he said.
The BPE spokesman also said   in 2014, the bureau would also begin the privatisation of the housing sector, Abuja Security and Commodity Exchange Plc., as well as the country’s transportation sector.

As the nation awaits details of the privatisation of the refineries, petroleum marketers under the aegis of IPMAN have urged the federal government to repair them before the selling them off.

Chairman of IPMAN, Alhaji Sule Magaji, in an interview with NAN yesterday, said: “We in IPMAN are against the plan to sell the refineries but if the federal government will not rescind the decision, the refineries should be made fully functional before being sold.
“The government should also take concrete measures to further secure all oil pipelines across the country.”

According to him, repairing the refineries and securing the pipelines would motivate potential buyers and other investors to be part of the planned sale.

The– IPMAN boss also expressed his fear that the sale of the refineries would lead to total removal of   subsidy on some petroleum products. sthisday


from Benjamin A Ameh, Lagos

This laudable achievement has contributed immensely in facilitating trade among various sections of the country.

Speaking at the ongoing Lagos International Trade Fair 2013 in Lagos on the NNPC Special Day, the Group Managing Director, NNPC, Engr Andrew Yakubu said that for some years now, since assumption of office of the Hon Minister, petrol shortage, which in the past was a recurrent decimal, has become a thing of the past.

 The speech which was delivered by the Managing Director of NETCO, Dandume Abdulahi, further noted that as a result, farmers are able to transport their farm produces from one part of the country to the other in a short time at more ease, therefore, have reducing losses as results of delays in conveying the perishable produces from farm gate to market place. Also manufacturers are able to transport their products across the country with ease and at affordable fares, he added.

  He stress further that in making the petroleum products available to the consumers has helps in facilitating trade like this international trade fair to be flourish.

 NNPC boss revealed that we are working on creating the enabling environment for manufacturing to flourish across the country adding that work on the East-North pipeline through Ajaokuta –Kano branching into Abuja is being aggressively executed. Also projects along the East – West pipeline are on track, he stated.

 Engr Yakubu commended the organizer for continued to provide the needed enabling environment for businessmen, manufacturers, and investors, from both within and outside Nigeria, to meet and consummate trade relations and thus enhance Nigeria’s economy growth.

The theme of this year’s fair: “Harnessing Trade Potential for an inclusive Economy” which is anchored on two phases ‘globalisation and ever increasing intra-dependence within national economies’ show how trade has become critical to the development of an inclusive economy both national and international level.

“The federal government has put in place policies and initiatives geared towards making investment in the industry and by extension
Nigeria much more attractive. The NNPC, under my leadership with the guidance and support of its board led by the Honourable Minister of Petroleum Resources, mrs Diezani Alison-Madueke has been working round the clock to ensure that we sustain the enabling environment that we have created across the country for trade to flourish.”       

Minister of Power, Chinedu Nebo

From Benjamin A Ameh, Lagos

The Minister of Power, Chinedu Nebo has applauded the offerings of donor agencies to the on-going privatisation in the power sector, which is an indicator that their expertise, foresight and doggedness prevented the hiccups which would have been experienced in the exercise.

The Minister made this remark on Monday October 28, 2013 when the Donor Coordinating Group, led by the UNIDO Representative, Patrick Kormawa paid him a courtesy call in his office in Abuja.

According to the statement posted on minister of finance website, Nebo described as critical the advice and support provided to all arms of the power sector, involving regulatory, policy, executive and technical measures towards ensuring a seamless privatisation implementation.

He stated that Government has achieved 90% success in the payment of workers’ severance packages and pension. He also noted that a total of 40,093 workers have already received their pay with an additional 5,000 needing to be revalidated. According to him, the intention of Government is to ensure that there is no further delay in the proposed formal physical handover of power assets to private owners.

While calling for more collaboration from international partners, he added that their assistance in ensuring access to cheap funds for expansion of their capacities is urgently required.

Nebo further explained that Government would not be aloof to unpatriotic citizens’ efforts to derail the process of power transition; stating it will do all in its power to sustain the privatisation objective.

Earlier in his speech, the UNIDO Representative to the occasion, Patrick Kormawa said that the group which is chaired by the Minster of Power, Chinedu Nebo is focused on providing support to the sector.

Kormawa revealed on the activities of the group that it provides the platform for Government and the donor groups to share knowledge, expertise and information on happenings in the power sector.

Conoil Plc, Chairman, Mike Adenuga

from Benjamin A Ameh, Lagos
We are building stronger financial position and creating enduring value for our shareholders including numerous stakeholders.

The Chairman of Conoil Plc, Mike Adenuga, has assured shareholders of the company and the investing public of a bright future outlook.
Speaking at the company’s 43rd annual general meeting  (AGM) held in Uyo, Akwa Ibom State, Adenuga reiterated the company’s commitment to maintaining its leadership position in the downstream petroleum sector by growing its business and creating an enduring value for its esteem shareholders including numerous  stakeholders.
“We are building stronger financial position and creating enduring value for our shareholders. We will constantly develop strategies to sustain our position as the only marketer that always goes the extra mile for our ever-growing customers, with total commitment to excellent service delivery. We firmly believe that such a robust strategy will ensure continued growth and stronger position in our core markets”, Adenuga said.
Although the company recorded revenue of N149.99 billion and operating profit on ordinary activities before taxation and exceptional items stood at N1.15 billion, Adenuga, nevertheless, assured the shareholders that the outlook and future of the company remains bright.
There are already pointers to the improved activities in the oil marketing company in order enhanced shareholders’ value as showed in its 2013 half year unaudited results released to the stock market community through the floors of the Nigerian Stock Exchange (NSE).
In that results showed the posted record of 255 per cent increase in profit after tax from N450.9 million in 2012 to N1.6 billion in 2013, while profit before tax rose by 199 per cent from N663.1 million to N1.98 billion respectively.
Adenuga, revealed that as part of the strategy to shore up its bottom-line of the company, management has strengthened and consolidated its leadership position in the aviation business through acquisition of new equipment to meet the ever-growing local and international clientele’s demands.
He further disclosed that “our strategy in retail is to provide top quality products and services that will make customers want to always patronise us for their fuel and non-fuel needs. We are not resting on our oars on our aggressive acquisition and expansion drive that aims at increasing, substantially, the number of our retail outlets nationwide,” conoil boss added.