Forte Oil commissions green energy solutions as earnings surges 81.05%

by | December 8, 2017 1:55 am

A leading indigenous energy firm, Forte Oil Plc, has commissioned alternative solar energy solution tagged ‘Green Energy’ solution for medium income earners as third quarter profit surges and margins improves amid a volatile and tough operating environment.

Akin Akinfemiwa, Group Chief Executive Officer of Forte Oil Group, while speaking during the launch, stated that “we are foremost integrated energy provider with footprints in upstream, downstream and power generation. Today, that we are launching our solar system, we always look for formidable partners to bring our vision to live”.

He said that the company decided to invest in solar energy to bridged power gap within the low and medium income earners in Nigeria.

Akimfemiwa said that the newly solar energy lunched was customised at reduced cost to meet the demand of Nigerians, adding that it also support the economy with regards to poverty alleviation.

“Today, that we are launching our solar system, we always look for formidable partners to bring our vision to live.

“We want to sit with them and create bespoke solutions and achieve a sustainable reliable and cost-effective effective solar solution.

“The solution is mobile, it is cost effective and devoid of service charge,’’ he said.

The Forte oil boss said that the product is very efficient and it was targeted at medium income group that rely on generators to provide power.

“We will design an array of energy solution,” he said.

The company’s earnings beat analysts’ expectation amid a plethora of challenges undermining the growth of operators in the downstream oil and gas industry.

For the first nine months through September 2017, Forte Oil’s net income surged by 81.05 percent to N5.07 billion from N2.79 billion the previous year.

Sales from power generation surged by 220.93 percent to N25.45 billion in September 2017 from N7.93 billion as at September 2016.

The growth at the bottom line (profit) was underpinned by a 24.24 percent, and 81.94  percent reduction in cost of sales and income tax expense to N79.98 billion and N5.58 billion respectively.

Fort Oil is efficient and profitable as net margins increased to 5.22 percent in the period under review as against 2.30 percent the previous year. Gross profit margin rose to 17.63 percent in September 2017 as against 12.93 percent as at September 2016.

  Julius Omodayo-Owotuga, the Group Chief Financial Officer (GCFO), Forte Oil Group, said that the solar energy solution comes with four panels, four 100 amps and 12 volts batteries with free installations.

Omodayo-Owotuga said the 1.5 KVA solar panel which cost about N1.5 million in the market was given out at the cost N700,000 per unit to wholesalers which also attracts discounts depending on the number units purchased.

According to him, the product has a year warranty while the panels have 4-5 years lifespan. It also last for twelve hours depending on equipments used for.

“It was designed for Nigeria atmosphere with quality materials, targeted at low and medium income earner people of the society, in addressing the challenges faced with pollution from generating set.

“ We are partnering with various housing estate management, house builders and accredited engineers to assist in eradicating power challenges in Nigeria through renewal energy,’’ he said.

“In his remarks, the commissioner for Energy and Mineral Resources in Lagos State, Olawale Oluwo, said “this partnership comes at a time when Lagos Government is targeting 3,000 MW off grid and independent of Niger Delta gas.

Oluwo said that it is complementary to what the state is doing towards lightening Lagos State through solar energy, which the governor will give it the necessary support.

“We will key into the solar energy solution by Forte Oil which is very vital to our program and now that Forte Oil has put its brand to solar, we are now sure that we have a reliable partner in solar energy, Oluwo assured.

Olusola Bello