Seplat Energy Hits Fresh All-Time High as Investors Eye Energy Stock
Seplat Energy Plc has become the most expensive stock on the Nigerian Exchange as the oil stock spiked by 21% in the equities market due to improved sentiment ahead of earnings festival.
The company’s market value inched near N3 trillion in the equities market ahead of its third quarter earnings release. Data from the local bourse showed that the energy company share price climbed to N4,964.70 due to a strong bargain hunting, up by 20.9988% week on week from N4.103.10 in the equities market.
The company’s 588.444 million shares outstanding were valued at N2.921 trillion on Friday as two day rally strengthened its market valuation.
The price surge was driven by investors’ sentiment rather than fresh earnings release. In the latter part of Sept, Seplat told the Nigerian Exchange that Tierce Investments Ltd, a company wholly owned by Mr. Udoma Udo Udoma, the Chairman of the Board of Directors, purchased 22,571 ordinary shares at average price of N3764.12.
The company said the transaction has resulted in a beneficial ownership of 22,571 shares by Mr Udoma Udo Udoma, which equates to a voting interest of 0.004% based on the issued shares of 588,444,561.
The company stock price increased to GBP 208 on London Stock Exchange on Friday. In the first half of 2024, Seplat delivered a solid performance in the first half of the year, with production at 48.4kboed at the mid-point of guidance, unchanged at 44-52kboed.
Earnings per share (EPS) came in flattish at US$0.07 year on year and the quarterly dividend was maintained at US$0.03.
The share price has been strong and analysts said they anticipate that completion of the MPNU acquisition could drive further upside.
Net cash generated from operations fell 13.1% to US$226 million in the first half of 2024, after a large negative working capital movement. Seplat’s negative working capital of US$46.8 million in the first half of 2024 reflected a reversal in the over lift position.
Net investment in the half was US$81.6 million versus US$81.4 million in the first half of 2023, including capex of US$102.4 million.
The company’s capital expenditure guidance for the year was unchanged at US$170 million-US$200 million, according to Capital Access Group analysts.
Seplat net debt ended the half year at US$366 million with leverage improving to 0.8x, analysts stated. #Seplat Energy Hits Fresh All-Time High as Investors Eye Energy Stock
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