August 8, 2014 / 12:27 PM / 4 years ago

Nigeria's Forte Oil doubles H1 profit on power generation

LAGOS (Reuters) - Pretax profit at Nigeria’s Forte Oil more than doubled to 4.19 billion naira ($25.7 million) in the first half, boosted by its fuel marketing and newly acquired power generation business, the energy company said on Friday.

The outcome compares with 1.66 billion naira in the first half of 2013, Forte Oil, which owns more than 500 petrol stations, said in a statement.

The group did not say how much its power business contributed to profit. Chief Executive Akin Akinfemiwa told Reuters in February the business accounted for 10 percent of total 2013 earnings, even though it only took control of the plant in November.

“Superior contributions from our power and upstream services divisions continue to strengthen our market dominance,” Akinfemiwa said in the statement.

Shares in Forte Oil, up 144 percent so far this year after rising more than 1,100 percent in 2013, were flat at 235.5 naira on Friday.

The energy company, majority owned by tycoon Femi Otedola, diversified into power generation via a government-led privatisation scheme meant to tackle decades of chronic blackouts in Africa’s biggest economy.

It paid $132 million in October to acquire the 414 megawatt Geregu Power Plant.

Turnover rose 33 percent to 79.61 billion naira in the six-months to June 30, the company said.

1 US dollar = 162.90 naira

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