Forte Oil looking at geographic diversification

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CAMAC’s revenue affected by low production Oil prices are still getting support from supply concerns and middle east tensions. Photo: Getty images.

“We’re looking at diversification from two perspectives – we plan to diversify across the energy share because we want to be the number one energy provider in Nigeria and Africa by extension but at the same time we’re also looking at diversification geographically,” Omodayo-Owotuga, the group chief financial officer at Forte Oil told CNBC Africa on Monday.

“In terms of geographical diversification, that would happen in the medium to long term where we would be moving along the West coast. We’re starting from ensuring that our core business remains very strong which is what you have seen in the half year results.”

The petroleum products company saw its first half profit after tax up 62 per cent while revenue increased by 21 per cent to 59 billion naira. Forte Oil also reported a 63.3 per cent rise in half year earnings per share to 1.29 naira.

Omodayo-Owotuga attributes the current success of the oil company to their transformation agenda subsequent to a name change from African Petroleum Plc to Forte Oil.

“Three main aspects of our transformation agenda that has impacted these numbers include the reengineering of our people, systems, controls, processes and our strategies. We’ve expanded retail outlets into strategic areas, we also did a lot in cost reduction. That’s the source of our 57 per cent increase in our PBT,” he explained.