By Alex C
Seplat Petroleum Development Company Plc market capitalisation has appreciated by N67 billion three months after its listing on the Nigerian Stock Exchange (NSE). The company which became the first oil exploration and production firm to be listed on the NSE on April, 2014, is also listed on the London Stock Exchange (LSE) following a successful $500 million initial public offering in the international markets.
Seplat’s worth on the stock exchange appreciated from N318.707 billion to N387.317 billion as at Monday 15 July 2014 with closing price of N700. The growth, which is a sign of demand for the shares, market operators say would continue as more investors take advantage of future prospects in the company.
Speaking at the Annual General Meeting of the company in Lagos recently, The Chairman of Seplat, Dr. Ambrosie Orjiako said that with consistent growth in production, reserves and profit and its dual listing on NSE and LSE, Seplat is 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. 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,” Orjiako explained.
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.
Austin Avuru, Chief Executive Officer of the company, stated that 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 disclosed.