Seplat Energy Increases Dividend by 20%

Emma Okonji

The Seplat Energy has announced 20 per cent increase in its quarterly dividend from 2.5 cents per share to 3.0 cents per share.

This was revealed in its statement of results for the first three months of 2023, which announced that revenues of the company went up 37 per cent to $331 million while the bottom line grew by 189 per cent to $57.5 million.

While revenues grew 37 per cent, the company’s analysis revealed that cost of sales rose by just 6.6 per cent meaning gross profits surged by 69 per cent to $198.3 million at a margin of 60 per cent, compared to 48 per cent in the first three months of 2022.

Delving deeper into its operational update, it became clear that the company remained extremely professionally managed despite recent complaints.

Seplat again demonstrated why it has adopted the moniker of Nigeria’s leading independent by delivering average daily working interest production of 51,720 barrels of oil and gas equivalent and extending its safety record to 3.8 million person-hours without a single lost-time injury.

Perhaps it is not a surprise then that Seplat was the first African E&P company to be awarded the coveted ISO 55001 asset management certification, which recognised companies that manage their assets responsibly and effectively throughout their life cycle.

Nigerian and international shareholders would be delighted to see that the company has increased the base level of its quarterly dividend to 3.0 cents per share so soon after it announced a special dividend of 5.0 cents at its full-year 2022 results in March, for a total dividend to shareholders of 15 cents for the 2022 financial year.

In its statement to the Lagos and London Stock Exchanges, Seplat’s Chairman, Mr. Basil Omiyi, went to great lengths to thank the Company’s employees, 98 per cent of whom are Nigerian, for their support.

Omiyi went on to reassure them “that the board remains united in its determination to implement the strong corporate governance that will enable us to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”

The company also reminded the market that as revealed in its recent annual report, it has continued to make a commendable and important contribution to Nigeria with its gas production at times powering 30 per cent of the country’s electricity grid and its operations generating close to $1 billion in revenue for the country and its population in 2022.

Seplat has been in the news recently as victim of what looks like an orchestrated campaign waged in the courts with the collaboration of shareholder stooges who impugn the company’s reputation with baseless and vile accusations for which they have provided no evidence whatsoever.

Their malevolent actions have resulted in the resignation of one of Nigeria’s foremost experts in corporate governance, Professor Fabian Ajogwu, citing recent events and deliberate external interferences, which have prevented him from effectively discharging his fiduciary and statutory duties as an Independent Non-Executive Director to the highest standards of corporate governance he has written about and subscribed to.

Seplat Energy is a rarity in Nigeria, being listed not just on the premium board of the Nigerian Exchange, but also on the prestigious main board of the London Stock Exchange (LSE), where the highest standards of governance are demanded by investors.