What shareholders said at company’s first virtual Annual General Meeting
Seplat Energy Plc on Wednesday had it’s Annual General Meeting (AGM) virtually where it declared $204.4m profit for the 2022 financial year.
Chairman of Board, Seplat Energy, Mr. Basil Omiyi, said the company had the AGM in compliance with the final and binding judgment of an Abuja Federal High Court.
In his address to shareholders and other stakeholders during the AGM, Omiyi said the company’s total revenue for the period rose by 29.8 per cent to $951.8 million while profit before tax rose by 15.3 per cent to $204.4 million.
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With the healthy financial performance and solid cash position, the Seplat Energy Board recommended a special dividend of US 5 cents per share to be paid to shareholders, in addition to the final quarterly dividend of US 2.5 cents per share. This brings total dividend for the year to US 15 cents per share.
The shareholders at the meeting approved the dividend payout, which will be made on or around 16 May 2023 to shareholders whose names appear in the Company’s Register at the close of business on 18 April 2023.
Omiyi said the company’s oil business started the year on a strong footing, with working interest production of 29,078 barrels of oil per day (bopd) and 30,338bopd in Q1-2022 and Q2-2022 respectively, adding that: “However, in the third quarter, production was impacted negatively by evacuation problems at the Forcados Oil Terminal (FOT), not being available for a period.
“Thankfully, the much-delayed launch of the Amukpe-Escravos Pipeline (AEP) provided some relief as we were able to flow c.10,100bopd (working interest production) during the period.
“The AEP is now a major export route for our largest assets at OMLs 4, 38 and 41. As a result, our reliance on the Trans Forcados Pipeline and FOT is significantly lower, reducing risks of downtime while providing a solid base for stronger export volumes and revenues.”
According to the Seplat Energy Chairman, the company’s gas business remained strong through the year, as good progress was made with the construction of the ANOH Gas Processing Plant, which now awaits the completion of third-party infrastructure before it can commence operations, projected for the final quarter of 2023.
“The positive impact of renegotiated Gas Sales Agreements (GSAs) in H2-2022 provided healthy support for revenue growth and profitability and we continue to focus on increasing capacity utilisation at our Oben Gas Processing Plant,” he added.
Reacting to the Seplat Energy Chairman’s comment, a shareholder, Patrick Ajudua, said: “I want to commend the company for the special dividend of 5 cents, in addition to the final dividend of 2.5 cents, bringing the total to 15 cents. We are, indeed, very grateful and we appreciate the Board for being consistent in dividend payment and ensuring a generous reward to the shareholders at a very difficult time, when most companies are even finding it difficult to maintain profitability.”
President, Noble Shareholders Solidarity Association, Matthew Akinlade, said: “I wish to commend the Board and management for a good performance, in spite of the challenges of year 2022, a you were able to raise revenue by about 38% and cost of sales at just 18%, which shows an effective management of the company’s cost.”
CAC, in a letter signed by Mr. Luqman Salman for the Registrar-General, had said: “We refer to the previous correspondences between us, you and the law firm of 21st Century Chambers (representing some of your shareholders), on the above subject matter.
“The Commission, having given detailed and thorough consideration to all the issues raised in the petition that was received from 21st Century Chambers on behalf of some shareholders of your company and your responses thereto.
“As you may be aware, the Commission is the 10th Respondent in Suit No: FHC/ABJ/PET/8/2023 between Boniface Okezie & 4 Ors Vs. Seplat Energy PLC & 9 Ors. As you may also be aware, the court had on the 28th April 2023 ordered that parties should not tamper with the res until issues are resolved.
“In view of the order of the court referred to above, the Commission, being a party to the suit is under the obligation to obey the order. The Commission will therefore neither attend the AGM nor give cognisance to any resolution that may arise therefrom.”
