Forte Oil Rallies to 3-Year High on Power Plant: Lagos MoverEmele Onu
Forte Oil Plc, which operates gasoline stations in Nigeria, jumped to the highest in more than three years as the company’s purchase of a power plant boosts investors’ outlook.
The stock advanced a fourth day, gaining 5 percent to 45.57 naira by the close in Lagos, the commercial capital, the highest since April 2010. Almost 500,000 shares were traded, equal to 1.3 times the three-month daily average.
Forte Oil’s profit will jump more than six times in the third quarter to 2.6 billion naira ($16.3 million), the company said on June 26. Revenue is seen more than doubling to 78.2 billion naira. The company was handed control of the 414 megawatt Geregu power plant by Nigerian President Goodluck Jonathan after it completed the required bid sum of $132 million, it said in an Oct. 3 statement.
“The company’s expansion into the power sector which is expected to boost income from next year has started impacting on the share price,” David Adonri, chief executive officer of Lagos-based Lambeth Trust and Investment Co., said by phone.
Forte’s shares are the best performers on the Nigerian Stock Exchange All-Share Index this year, jumping almost six times, compared a 31 percent gain in the 193-member gauge.