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Seplat shareholders reap benefits of listing

By BusinessNews Staff on July 3, 2014

Shareholders of Seplat Petroleum Development Company Plc have started reaping benefits of listing on the Nigerian Stock Exchange (NSE), realising a capital gain of 22 per cent as at close of June 30, 2014.

The company was listed on the NSE and London Stock Exchange (NLSE) in April. Two months after the listing, the shareholders have started enjoying one of the benefits of the listing, capital appreciation, which they never enjoyed prior to the listing.

The equity price moved from the listing value of N576 to close at N700 yesterday, showing a capital gain of 22 per cent.

Meanwhile, the chairman of the company, Dr. Ambrosie Orjiako, has said with consistent growth in production, reserves and profit and its dual listing on NSE and LSE, Seplat is now fully set for the next phase of building a sustainable long term business with substantial contributions to Nigeria’s energy security.

A statement from the company quoted Orjiako to have stated this a the post-annual general meeting of the company in Lagos on Monday.

“Seplat has continued to deliver growth holistically since inception in line with our strategy. Operated crude oil production has grown significantly over a three year period of 2011 to 2013, from 11.5 million barrels in 2011 to 18.8 million barrels in 2013, with an exit gross production rate at 31 December 2013 of 61.7 thousand barrels per day.

“Operated average daily production for 2013 was 51.4 thousand barrels per day, with total annual operated production of 18.8 million barrels. SEPLAT recorded total revenues of $880.2 million for the year ended 31 December 2013, representing growth of 41 per cent over the 2012 figure,” he said.

According to him, the future of the company is very high bright.

“We shall strive to maintain our leadership position in the indigenous E&P industry in Nigeria and our focus in following our growth strategy to seek to ensure delivery of our commitment not only to capital growth but also to remain profitable and dividend paying. We shall seek to deliver tangible rewards to all stakeholders,” he said.

Speaking in the same vein, the the Chief Executive Officer of the company, Austin Avuru noted that Seplat’s growth trajectory will remain on the upward because the company intends to keep production levels and revenue streams on the high by investing in new wells, improving infrastructure and monetizing its natural gas resources.

“Seplat intends to continue development of its existing properties by improving operational efficiencies, investing in facilities and infrastructure to increase oil production and positioning itself to further monetise natural gas resources.

“New developments from recent discoveries and the completion of identified development projects will also ensure that the company is well positioned to grow both reserves and production by converting contingent and prospective resources into commercial reserves,” Avuru said.

[This Day]

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