Seplat Energy Flattish Despite Bumper Earnings, Special Dividend
Seplat Energy Plc steadied in the equities at N5,700 per share as investors failed to react to the company’s bumper earnings harvest and proposed dividend for 2024. Its high market price and low outstanding shares in the market effectively blocked retail investors.
Stockbrokers practically ignored all the enticements, with a 10% increase in dividend payment and special dividend following integration of Mobil acquisition. For financial year 2024, the board declared total dividend declared for 2024 increase to US$ 16.5c, up by 10% on 2023.
The oil stock traded steady on tiny market activity, with 13,084 volumes valued at more than N67 million exchanging hands in the trading platform of the Nigerian Exchange. Seplat Energy traded at a fair discount to its 52-week in the equities market as bear investors continue to display strength in the local bourse.
MarketForces Africa reported that Seplat Energy Plc grew profit after tax by 16.9% year on year to about $144.8 million in 2024. Independent Energy Company says it generated revenue of $1.116 billion (N1.652 trillion) for the 2024 financial year.
The figure represented a 5.2 percent increase when compared to $1.061 billion (N696.9 trillion) recorded in 2023. Seplat Energy targets average production guidance of 120-140 kboepd in 2025.
The board announced a final dividend at a rate of US3.6 cents and a special dividend of US3.3 cents per share to be paid to shareholders whose names appear in the Register of Members as of the close of business on May 9, 2025. In its financial statement, Seplat said it completed the acquisition of SEPNU, previously Mobil Producing Nigeria Unlimited, MPNU, on 12 December 2024.
The cash consideration on closing was $800 million, including $128.3 million deposit paid in 2022. The company said all operations have been consolidated since this point and are included in reported accounts. Since the completion of the transaction, Seplat said it has focused on integration of the businesses across people and systems and budget planning for 2025.
The company revealed that as part of the transaction, up to $300 million may also be paid, subject to certain performance conditions over the 5-year period 2022-2026. For 2022 and 2023 a total of $43 million was paid (included in closing consideration). For 2024, contingent payment three was not paid as the volume performance target was not met.
Since completion of the acquisition, the key focus points have been integration and 2025 budget planning with our JV partner, the company said. It said these discussions have commenced with strong partner alignment to increase opex and capex activities, which are designed to improve integrity, reliability, and deliver sustained production growth.
The most significant 2025 investments include contracting two additional barges and replacing the Inlet Gas Exchanger (IGE) on EAP NGL facility. #Seplat Energy Flattish Despite Bumper Earnings, Special Dividend Nigerian Exchange Falls by N73bn as Investors Dump VFD, OANDO
