One of the top domestic oil and gas companies in Nigeria, Seplat Energy Plc, has announced a major change to its shareholder structure as a result of Udo Udoma, the board Chairman, purchasing shares.
In a statement dated September 27, 2024, the company stated that 22,571 ordinary shares of Seplat Energy had been purchased by Tierce Investments Ltd, a business fully owned by Udoma.
Udo Udoma had no shares in Seplat before this acquisition, making this his first ownership position in the business.
Udoma has acquired 22,571 shares, which amounts to a 0.004% voting interest in the company’s total issued shares of 588,444,561. The deal might represent Udoma’s confidence in the company’s prospects and match his interests with those of Seplat’s stockholders.
On September 27, 2024, Seplat’s share price on the Nigerian Exchange Group (NGX) was N4,103. At that time, the deal was completed. This puts the acquisition’s estimated worth at N92.57 million. His choice to invest in Seplat through Tierce Investments as the Chairman of the Board demonstrates his faith in the company’s long-term prospects and strategic approach.
Before being well-known in Nigerian politics and business, Udoma was the country’s minister of national planning and budget. One could interpret his inclusion on Seplat’s shareholder list as a signal to the market that things are going well.
Given the perception that board members possess insider knowledge, Udoma’s acquisition could be interpreted as a sign of confidence regarding Seplat’s future growth and financial prospects.
Despite difficulties in the global energy market, Seplat Energy Plc has been a major player in Nigeria’s oil and gas sector and has maintained its ability to provide value to shareholders. Investors have embraced the company’s strategy of diversifying into renewable energy and natural gas projects, setting Seplat up for long-term growth in the face of the global transition to cleaner energy sources.
The major shareholders of Seplat as of June 30, 2024, were as follows:
- M&P Group, holding 120,402,000 shares (20.46% ownership),
- Petrolin Group, with 81,015,319 shares (13.77%),
- Sustainable Capital, with 54,328,805 shares (9.23%),
- Professional Support Limited, with 47,929,438 shares (8.15%),
- Allan Gray Investment Management, with 41,895,757 shares (7.12%).
Despite his relatively small holding of 22,571 shares, Udoma’s appointment as Chairman of the Board conveys to investors his significant commitment to the company.
Additionally, it is in line with his financial interests and Seplat’s long-term success, which could boost investor trust.
Seplat Energy Plc, which has gained an incredible 77% this year, is still one of the more highly valued equities on the NGX at N4,103 per share. Seplat’s varied commercial ventures, such as its natural gas division, have acted as a hedge against the volatile crude oil market prices.
Seplat is well-positioned to benefit from Nigeria’s growing emphasis on natural gas as a cleaner energy alternative, bolstering its position in the market.
Recently, Seplat Energy announced interim dividends to its stockholders for the second quarter of 2024 at N28 billion. According to a corporate statement accessed by BrandSpur national news brand from the NGX website, the corporation would base its Q2 2024 interim dividend payment on N1,570.99 per dollar, which is the closing rate of NAFEM on August 12. It comes to N47.13 per share with an interim dividend of $0.03 per share, for a total dividend distribution of N28 billion.
The business plans to pay out N54.5 billion in dividends for the first half of 2024, in addition to its interim dividend payout of N26.5 billion for the first quarter of 2024. Compared to the N21.6 billion in dividends given out in the first half of 2023, this is a 152% annual increase.
Seplat Energy reported an N68.6 billion profit after taxes in the first half of 2024. As a result, the business achieved an 80% dividend payment ratio in H1 2024. The company’s dividend payout ratio was 51.4% in the first half of 2023.
