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In a statement released on September 27, 2024, the company disclosed that Tierce Investments Ltd, fully owned by Udoma, has purchased 22,571 ordinary shares in Seplat Energy.
This marks Udo Udoma's inaugural investment in Seplat, as he previously did not hold any shares in the company.
The 22,571 shares acquired by Udoma account for a 0.004% voting interest, calculated against the company’s total issued shares of 588,444,561.
This transaction may reflect Udoma’s confidence in the company’s prospects, aligning his interests with those of Seplat’s shareholders. The acquisition occurred when Seplat’s share price was recorded at N4,103 on the Nigerian Exchange Group (NGX) as of September 27, 2024, valuing the purchase at approximately N92.57 million. As the Chairman of the Board, Udoma’s decision to invest in Seplat through Tierce Investments underscores his faith in the company’s strategic direction and long-term viability.
Udo Udoma, a notable figure in Nigeria's business and political landscape, has previously held the position of Minister of Budget and National Planning. His addition to Seplat’s shareholder roster may be interpreted as a favorable indication for the market.
Board members are frequently perceived as possessing insider insights, suggesting that Udoma’s acquisition could indicate a positive outlook on Seplat’s growth potential and financial prospects.
Seplat Energy Plc has established itself as a significant entity in Nigeria’s oil and gas sector, consistently providing value to its shareholders despite the challenges faced in the global energy market.
The company’s approach to diversifying into natural gas and renewable energy initiatives has garnered favorable responses from investors, strategically positioning Seplat for ongoing growth in light of the global transition towards cleaner energy alternatives.
As of June 30, 2024, the major shareholders of Seplat included:
- M&P Group, with 120,402,000 shares, representing 20.46% ownership,
- Petrolin Group, holding 81,015,319 shares, or 13.77%,
- Sustainable Capital, possessing 54,328,805 shares, equating to 9.23%,
- Professional Support Limited, with 47,929,438 shares, accounting for 8.15%,
- Allan Gray Investment Management, owning 41,895,757 shares, which is 7.12%.
Although Udoma's stake of 22,571 shares is relatively minor, his role as Chairman of the Board signifies a strong commitment to Seplat, which may enhance investor confidence by aligning his financial interests with the company's long-term objectives.
Seplat's stock performance has been notable, trading at N4,103 per share, making it one of the most valued stocks on the NGX, with a remarkable 77% increase year-to-date. The company's diverse operations, particularly in natural gas, have provided stability amid the volatile crude oil market.
With Nigeria's growing emphasis on natural gas as a cleaner energy source, Seplat is strategically positioned to benefit from this shift, further solidifying its market presence.
Recently, Seplat Energy announced an interim dividend of N28 billion for its shareholders for the second quarter of 2024. According to a corporate disclosure on the NGX website, reported by Nairametrics, the company will utilize an exchange rate of N1,570.99 per dollar—NAFEM’s closing rate on August 12—for the Q2 2024 interim dividend payment.
The interim dividend of $0.03 per share translates to N47.13 per share, culminating in a total dividend payout of N28 billion. When combined with the N26.5 billion interim dividend for the first quarter of 2024, the total dividend distribution for the first half of 2024 reaches N54.5 billion. This represents a significant 152% increase compared to the N21.6 billion dividends distributed in the first half of 2023.
In the first half of 2024, Seplat Energy reported a profit after tax amounting to N68.6 billion. As a result, the company achieved a dividend payout ratio of 80% for H1 2024, compared to a dividend payout ratio of 51.4% in H1 2023.