Seplat Petroleum Development Company Plc, a Nigerian independent energy company listed on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), has paid a total dividend of $344 million to shareholders from 2014 to 2020.
This was made known at the Company’s eighth Annual General Meeting (AGM) held in Lagos.
Speaking the chairman of SEPLAT, Dr. ABC Orjiako, said the company’s cash position remained strong in the full-year of 2020 and the $318 million of cash it generated from operations was significantly more than the $150 million invested for future growth.
According to the chairman, the company’s capital expenditure in the 2020 business year was higher than the $125 million spent in 2019, which demonstrates the company’s commitment to growth; as it voluntarily repaid $100 million of its Revolving Credit Facility and ended the year with $225 million in cash and net debt of $440 million.
He said, “The company’s average working interest production was 51,183boepd, including 33,714bopd of liquids and 101MMscfd gas (17,469boepd). Of this, our Eland assets contributed 8,855bopd, or 26 per cent of total liquid volumes.”
He noted further that “Our financial performance enabled us to maintain our commitment to paying dividends. We paid a final dividend of $0.05, for a total dividend of $0.10 for 2019. In October 2020, we announced an interim dividend of $0.05 and the Board has since approved an additional top-up of $0.05, maintaining our $0.10 dividend for the 2020 financial year. Since we raised $535 million at our initial public offering in May 2014, we have returned $344 million to shareholders in the form of dividends.”
According to Orjiako, it is the responsibility of the Board to plan for the long-term sustainability of the company, as scenario analyses on SEPLAT’s assets have been conducted under different climate change and demand scenarios, whilst looking towards a future in which Seplat is much more involved in promoting low carbon environment in its operations and the company adopting Seplat Energy as its new name following the passage of the resolution at its AGM.
In the same vein, CEO, Seplat, Mr. Roger Brown, said, “The priority for 2021 is to address our responsibilities as part of the global energy transition and to set realistic targets for how we as a company evolve to drive that transition along.”