Seplat Energy Plc, the energy conglomerate co-founded and partially owned by Nigerian oil mogul Austin Avuru, has declared an interim dividend payout of $17.61 million, demonstrating its commitment to providing value to its shareholders in the face of a hard economic environment.
The stated dividend of $0.03 per share will be paid to local investors, with the conversion based on the Nigerian Autonomous Foreign Exchange Market (NAFEM) closing rate of N1,570.99/$ on August 12, 2024.
Seplat Energy’s total dividend payout for the first half of 2024 is now $34.28 million, representing a considerable increase above previous distributions. This sharp increase demonstrates the company’s strong profitability and strategic focus on maximizing shareholder returns, especially as the global energy market remains turbulent.
The firm’s interim dividend announcement follows a minor 4.7 percent drop in average daily production. Despite this dip, Seplat’s careful financial management and strategic efforts have allowed it to continue producing high returns for its stockholders. The company declared a net profit of $42.89 million for the first half of 2024, with a dividend payment ratio that increased to 80 percent from 51.4 percent in the same time the previous year.
Seplat Energy, founded by Austin Avuru and Ambrosie Orjiako, has risen to become Nigeria’s largest publicly traded energy group on the Nigerian Exchange (NGX), leveraging its strong presence in the Niger Delta’s oil and gas sector. The company has continuously been a top performer on the exchange, thanks to its ability to balance operational issues and strategic growth plans.
The interim dividend declaration is especially significant considering the oil and gas industry’s larger economic concerns, such as changing production levels and a volatile foreign exchange market. Seplat’s capacity to maintain substantial dividend payouts in such circumstances indicates its financial soundness and long-term strategic vision.
