Yemisi Izuora
Forte Oil has announced plans to divest it’s upstream assets to enable it consolidate it’s downstream operations.
The company said proceeds from the divestment would be used to expand its downstream fuel distribution business and to invest in storage infrastructure.
“The changing landscape also suggests backward integration would be essential to remain competitive within the sector, particularly in the face of impending deregulation,” it said in the notice.
Forte’s pretax profit nearly doubled in 2017 to 10.63 billion naira, though sales fell by 15 percent to 129.4 billion naira, the company said in March.
Shares in Forte closed flat on Wednesday at 44 naira, and have risen 4 percent this year.