Seplat Energy Trades Flat Despite Price Sensitive Corporate Actions
Seplat Energy Plc.’s market value stagnated at N5,700 per share on the Nigerian Exchange, NGX despite its 2024 earnings performance and its price sensitive moves. Nigeria’s leading independent energy company continues to make strategic operational and financial moves that have failed to impact its stock market performance.
Strong operational and strategic progress in 2024 culminating with the transformational acquisition of Mobil Producing Nigeria Unlimited, renamed Seplat Energy Producing Nigeria Unlimited, it said in its earnings release.
The company said its confidence in business outlook underpinned by special dividend, lifting total 2024 distribution to US$ 16.5 cents per share, up 10% on 2023. Still, its stock price stood still due to thin trading activities.
Seplat Energy is under the control of heavy shareholders who accounted for more than 81% of its 588,444,561 shares outstanding. The stock closely held cause thin transactions, and near zero price volatility for Seplat in the local bourse.
Seplat Energy Plc has recently made significant strides in fortifying its financial position and reinforcing investor confidence. From major bond issuances to executive share acquisitions, the company is positioning itself for long-term growth and operational expansion.
As of Friday close, investors valued Seplat Energy Plc.’s 588,444,561 shares outstanding for N3.354 trillion, trading at a negligible discount to its 52-week high.
In latest development tracked by analysts, the energy giant took decisive steps to strengthen its balance sheet by restructuring its debt portfolio.
On March 14, 2025, the company successfully priced a $650 million offering of 9.125% senior notes due 2030. This move was aimed at optimizing its capital structure and ensuring financial stability.
As part of this strategy, Seplat also launched a tender offer to repurchase its existing 7.750% senior notes due April 2026. The offer, which closed on March 18, 2025, witnessed strong participation, with approximately $567.46 million, representing 87.3% of the total principal outstanding, being validly tendered and accepted for purchase.
To further streamline its debt obligations, the company has announced that any 2026 notes that were not repurchased during the tender offer will be redeemed on April 1, 2025.
This move signals the company’s commitment to prudent financial management and reducing future interest burdens. Looking ahead, the energy company plans to invest up to $320 million in new wells and infrastructure this year, aiming to more than double its oil output to as much as 140,000 barrels per day.
This ambitious plan follows the company’s acquisition of Exxon’s Nigerian assets, positioning Seplat for substantial growth in the near future. Recently, Seplat Energy’s CEO and Executive Director, Mr. Roger Brown acquired 50,000 ordinary shares at 169.79 pence per share.
This latest purchase increased his total holdings to 4,203,776 shares, giving him approximately 0.7144% ownership in the company.
Such insider acquisitions are often viewed as strong indicators of a company’s potential for growth. Brown’s decision to increase his stake indicates a positive outlook on the company trajectory and reassures investors of the company’s strong fundamentals.
The company’s proactive approach to debt refinancing, along with the CEO’s increased shareholding, has sparked interest among investors. The stock has continued to gain traction on the Nigerian Exchange (NGX).
These developments come at a time when Seplat is making substantial investments in expanding its oil and gas production. The company has allocated between $280 million and $320 million for 13 new wells in 2025, reinforcing its commitment to growth and increased energy output.
The latest financial moves, combined with its leadership’s confidence in the company’s prospects, indicate a strong and ambitious future. The energy giant is reinforcing its position as a dominant force in Nigeria’s energy sector. #Seplat Energy Trades Flat Despite Price Sensitive Corporate Actions#
