The shareholders of Forte Oil plc on Tuesday at the company’s 37th annual general meeting (AGM) held in Lagos gave their approval for the board of directors to raise by way of a public offering, rights issue or any other method they deem fit, additional equity and/or debt capital up to the sum of N100billion.
The capital raising which formed part of the special businesses at Forte Oil plc AGM will come through the issuance of shares, convertible securities or non-convertible securities, global depository receipts, medium term notes, loan notes, bonds and or any other instrument(s) whether as a standalone transaction or by way of programme in such tranches, series or proportion, at such coupon or interest rates within such maturity periods, at such dates and time and on such processes all of which shall be determined by the directors subject to all relevant regulatory approvals.
As part of the ordinary businesses earlier at the annual general meeting, the shareholders gave the board their approval to pay dividend of N3.45. The improved business performance over the year and progress in strategic delivery led to the board of Forte Oil plc decision to increase the dividend. The dividend represents 38 percent increase against N2.50 dividend Forte Oil plc paid in 2014.
At the meeting, shareholders of Forte Oil plc received and adopted the report of the directors, the company’s consolidated statement of financial position with the statement of comprehensive income as at December 31, 2015 and the report of the auditors and audit committee thereon.
“These increase are part of our strategy to grow distributions and demonstrate our commitment to our mission, of being the investment of choice even in the present economy circumstances,” Femi Otedola, chairman, Forte Oil plc told the shareholders. Akin Akinfemiwa, group chief executive officer, Forte Oil plc expressed confirmed than ever that “huge investments made in our processes, philosophy and people have laid a solid foundation for our company to survive the current economic headwinds in 2016 and beyond.”
“While our company has continued to weather the very challenging operating headwinds, we have not been totally insulated from the fallout and shocks in the petroleum industry in general and the downstream subsector in particular. Building on our strategic actions before the volatility, including management of our foreign exchange and subsidy exposure through reduced importation of petroleum products for the year 2015 saw our revenues drop by 36.5 percent to N124.62bn compared to N170.13billion in 2014. However, the efficiency of our business operations has a positive net effect on our profitability with profit before tax growing 16.7percent to N7.01billion compared to N6.01billion recorded in 2014 while profit after income tax increased 30percent to N5.79billion compared to N4.46billion for same period in 2014,” Otedola further told shareholders.
He said: “We commenced 2015 with strong optimism in the overall direction of the nation as we looked forward to an election year with the hope of a seamless transition that would give rise to a more stable and stronger democracy. However, the year ended with significant uncertainties occasioned by drastic declines in government revenue due to global economic slowdown with particularly dire impact on emerging and oil-dependent economies.”
