Forte Oil plans to raise N100bn for expansion

Forte Oil Plc is to raise N100 billion fresh capital  to expand its operations within Nigeria.  Consequently, the directors of the company are seeking the approval of shareholders at the forthcoming annual general meeting  to raise the funds, ThisDay reports.

According to the company,  the N100 billion could be raise through a rights issue, bond or share offering, or global depository receipts. The capital raising plan is coming less than  a year after the company successfully attracted $200 million equity capital injection from Mercuria Energy to acquire 17 per cent in the company.

That equity capital contributed to the growth Forte Oil  recorded in its profit for 2015  as it helped to  reduce  interest charges paid on bank borrowings. Forte Oil posted  profit before income tax  of N7.01 billion in 2015, up by  16.7 per cent  from  N6.01 billion  recorded in 2014, while profit after income tax increased 30 per cent to N5.79 billion  from  N4.46 billion posted in  2014.

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