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.