Yemisi Izuora
Forte Oil has assured stakeholders including the shareholders of
better days ahead as it plans to consolidate the achievements of the
previous management and take advantage of the combined assets at its
disposal to improve stakeholders’ wealth and ensures best quality
service delivery to its numerous.
Speaking to journalists in Lagos on Tuesday, the Managing Director and
Chief Executive Officer (CEO) of Forte Oil Plc, Mr. Olu Adeosun,
stated that acquisition of major stake in Forte Oil Plc is going to be
one of the best things to have happened in this country.
“This is because of the symbiotic strength we are bringing to the
sector. It is a very complementary process. The core investors have a
wide experience and strength in the upstream with massive exposure to
international trading market; they have deep trading line with their
bankers. They are bulk traders and they are bringing in products.
“Forte Oil has the third largest retail outlets in Nigeria. We are not
buying from intermediaries again but we are buying directly from the
bulk traders where other intermediaries are buying from. We will enjoy
the benefits of economies of scale; we will enjoy the benefits of
credit and also enjoy the benefits of diversity of assets that Prudent
Energy is bringing to the party,” he said.
He argued that with Forte Oil’s terminals in Apapa, Prudent Energy’s
terminal in Ogbarra, South South Nigeria, the company now has an
avenue to move and evacuate products faster to the North and to the
South East.
“With the divestment by previous management, we have access to
retained earnings which we have converted to working capital and it
will help us to be able to do some of the things that that were not
possible in the past.
“We are going to focus on human capacity development and deploy staff
to areas of core competence. Workers will have access to diverse
opportunity within the two companies. For instance, if you are
interested in shipping and you are currently in downstream, there is
an opportunity for you to move across.
“We will focus on our customers by ensuring that every interactions
they have with us result in positive experience and we will ensure
that we create values for the shareholders by reducing operating costs
and increasing profitability,” he said.
On the challenge of downstream regulation, he stated that “We know
that premium motor spirit (PMS) otherwise called petrol is regulated,
but there are other products that are deregulated. We are a very
strong presence in distribution of aviation fuel, automated gas oil
(AGO) otherwise called diesel, LPG is a growth area for us, lubricant
is also a big space for us to operate, base oils in general.
“Our desire for our shareholders is same as for our customers. We
don’t want anyone to go. We want our shareholders to hold on to their
shares because we believe, as a long term company, there is better
value in long term and we will return dividends to them.”