A Review of the Nigerian Energy Industry

Seplat’s market capitalisation rises N67bn in three months

Seplat216 July 2014, Lagos – Exactly three months after its listing on the Nigerian Stock Exchange (NSE), the market capitalisation of Seplat Petroleum Development Company Plc   has appreciated by N67 billion or 22 per cent.

Seplat became the first oil exploration and production firm to be listed on the NSE on April, 2014. The company was also listed on the London Stock Exchange (LSE) following a successful $500 million initial public offering in the international markets.

THISDAY checks revealed that by last Monday when Seplat marked three months on the NSE, its worth on the exchange appreciated from N318.707 billion to N387.317 billion.

Market operators said the growth, which is a sign of demand for the shares, would continue as more investors take advantage of future prospects in the company.

The Chairman of Seplat, Dr. Ambrosie Orjiako, recently assured shareholders that the future of the company is very bright.

Speaking at the annual general meeting of the company in Lagos, orjiako 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.

“Seplat has continued to delivery growth holistically since inception in line with our strategy. Operated crude oil production has grown significantly over a three years 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,” he said.

He added: “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 the company would  strive to maintain its  leadership position in the indigenous E&P industry in Nigeria and  its focus in following  its growth strategy to seek to ensure delivery of  commitment not only to capital growth but also to remain profitable and dividend paying.

Also speaking, the Chief Executive Officer of the company, Austin Avuru said Seplat’s growth trajectory would 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 had said.


– This Day

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