CFO: Seplat Energy Shareholders Received $575m Dividends In 10 years

Since it was listed on the Nigerian Stock Exchange and the London Stock Exchange a decade ago, the shareholders of indigenous energy company, Seplat Energy, have received $575m as dividends.

The firm’s dividend rose by 20 per cent in 2023 to 12 cents per share, having paid special dividends in 2022 (five cents/share) and 2023 (three cents/share).

The Chief Financial Officer-Designate, Mrs Eleanor Adaralegbe, explained the significance that the company attached to paying dividends to shareholders during a recent media parley.

According to her, “Despite our aggressive capex investments and acquisitions, we continue to have adequate cash flow to pay our shareholders best-in-class dividend.

“With $575m paid as dividends since our IPO in 2014, we have successfully returned all the capital we raised at IPO. Dividends have been paid in nine out of the past 10 years.”

Seplat was founded in June 2009 through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ventures Limited, to pursue upstream oil and gas opportunities in Nigeria, and divestment opportunities arising out of the incumbent Major IOC’s portfolios.

The Managing Director of Seplat Energy, Roger Brown, stated that the ambition to be an ideal partner for multinational IOCs, who were divesting from the country was still an overriding one.

While speaking with journalists as part of activities to mark its 10th anniversary of listing, Brown expressed that the company opened itself up to scrutiny in both the Nigerian capital market and the international market to make the firm look attractive to IOCs, who were divesting but interested in the long term value of their assets.

He added, “The need to comply with industry recognised best practice and standards, whilst strictly adhering to international and local laws and regulations. There is also the need to maintain a strong cash position and good liquidity management; strong track record of debt management or ability to repay debts; and well-managed receivables and payables.”

On its commitment to the environment and people, the Seplat MD expressed that the dual listing was, “Needed to strengthen our commitments to energy transition and reductions in emissions”.

He said, “To have an established baseline for sustainability targets, and to ensure consistent and transparent reporting. To ensure responsible stewardship; drive positive social impact and contributions to local communities; and ensure strong partnerships with government and regulators."