Indeed, one of the hallmarks of an optimally functional financial system is ensuring that the best investment opportunities receive necessary and adequate funding. This, in turn, enables the economy to fully exploit its growth potential and deliver on the desired economic prosperity.
Thus, a well-regulated, transparent, liquid and deep capital market plays a critical and complementary role in mobilizing large-scale and long-term finance, which is essential for a prosperous private sector. And, of course, a thriving private sector is a key driver for job creation and economic growth.
Consequently, the Capital Market, as an essential and organised system for the free flow of capital -raised either through debt or equity – complements other financing options, supporting economic growth and allocating risk.
In April 2014, Seplat Energy Plc, Nigeria’s biggest oil and gas firm by market value, made a grand entry into the market. The company raised tier one capital via the Initial Public Offering (IPO) of US$535Millon. Remarkably, the IPO was over-subscribed, ranking as the largest ever capital raise for a Nigerian company since 2008, and the second-largest ever for a Nigerian company.
The company then progressed to a dual listing on the Nigerian Stock Exchange (now Nigerian Exchange Ltd) and the Main Board of the London Stock Exchange (LSE). This feat made Seplat Energy’s Listing the first for a Nigerian Company and the largest out of Sub-Saharan Africa at the time. Four years after, in 2018, the Nigerian Stock Exchange migrated Seplat Energy to its elite Premium Board.
According to Mr. Oscar Onyema, the Group Chief Executive Officer, Nigerian Exchange Group (NGX GROUP), when the Exchange engaged various oil and gas players in 2013 /2014 to get them to list, not only did Seplat Energy take up the challenge, but went ahead to set new and remarkable standards in the market.
“What was interesting about the Seplat Energy listing is that it was a dual listing and the first of its kind in Nigeria, between Lagos and London, as an IPO and equity listing. That meant we had to do a lot of work at the back end to collaborate with the industry in the UK and Nigeria to make sure that the stock was fungible and that we had operability between both exchanges. And so, with the Seplat stock, once listed, you can buy in Nigeria and sell in London or vice versa. I would say that that transaction was instrumental in the close relationship that the Nigerian Stock Exchange and the London Stock Exchange have enjoyed. Indeed, we signed an agreement to jointly support large companies looking for international capital and work with them to access the market. That has led to a few exciting listings in other industries operating in Nigeria. I should also say that the international perception of the Nigerian Stock Exchange, as it was then, greatly enhanced as a result of the Seplat listing because the primary listing is actually in Lagos.”
In appreciation of the company’s immense contributions to the deepening and expansion of the Nigerian Capital Market, Seplat Energy has been recognized for its contributions and performance in the Market. In 2018, the company emerged the 2018 overall winner of PEARL Awards capital market prize at Nigeria’s leading capital market awards ceremony “The Pearl Awards”. This was aside carting away four awards in the three main competitive award categories, one award in the Sectoral Leadership Awards and two in the Market Excellence Awards, to emerge the overall highest award winner.
In December 2018 Seplat also emerged winner of the NSE CEO Award for Issuer with the Highest Number of Disclosures, for issuing the highest number of non-structured disclosures during the year under review.
Again, for the second time in a row, Seplat won the overall PEARL Awards for 2019. The company also clinched three other awards: Sectoral Awards for the Oil and Gas Segment, Highest Net Ratio Award; while its then Chief Executive Officer, Mr. Austin Avuru emerged as the CEO of the Year.
Once again, in 2021, Seplat won the Most Profitable Company (Oil & Gas: Exploration and Production) at the Nigerian Investor Value Award (NIVA) organized by BusinessDay Media Limited in conjunction with the Nigerian Exchange Limited. The company was recognized for recording the highest percentage growth in profits year-on-year in its sector. The Company was said to have achieved this feat, while experiencing faster growth relative to its peers, and maintaining a relatively high operating performance. Seplat’s Pioneer Chairman, Dr. ABC Orjiako, also emerged as the Board Chairman of the Year at the event.
The Seplat journey began with the landmark acquisition portfolio of three onshore Oil Mining Leases: OMLs 4, 38 and 41. This landmark acquisition took up divestment opportunities from incumbent major international oil companies’ portfolios and operatorship of these assets. Further acquisitions include a 40% interest in OML 53, onshore north-eastern Niger Delta, from Chevron Nigeria Ltd in 2013, which became the Company’s Eastern Asset.
In addition, the 2019 acquisition of the entire issued share capital of Eland Oil & Gas consolidated Seplat Energy’s reputation as a strategic business entity on a global scale. The Eland acquisition was another first of its kind, marking a Nigerian company’s first acquisition of a UK-listed company.
Underlining the Seplat success story are a number of carefully crafted and implemented policies and practices, which have guided the company in acquiring, developing, operating and managing oil and gas assets, targeted at delivering maximum value to its stakeholders, including the host communities, shareholders, the government and employees. Some of the guiding policies include the Nigerian Code of Corporate Governance, Modern Slavery Act Statement, Code of Business Conduct, Investor complaints management, Related party transactions and guidelines, Share dealing, Whistleblowing, Inside information disclosure, Conflict of Interest for Employee and Directors, Anti-bribery and corruption and Asset management.
Seplat’s astute leadership, corporate discipline and strict adherence to these policies and processes have resulted to an exponential growth in revenues and profits. For instance, as a result of the successful IPO in April 2014, Seplat Energy’s share price has galloped from NGN297.85 in January 2015 to NGN1,300.00 per unit as at August 25, 2022.
In the company’s unaudited results for the first half of 2022, ended June 30, 2022, revenue for the period under review also appreciated by 71 per cent to $527 million from $308.8 million in comparable period of 2021, with a dividend of $2.5 cents per share declared. Profit before tax grew by 238 per cent to $209.9 million, from $62.1 million in 2021, and maintained a strong balance sheet with $350 million cash at bank. The company also reported a 208.5 per cent rise in gross profit to $274.3 million from $88.9 million in first half 2021.
Mr. Roger Brown, Chief Executive Officer (CEO) Seplat Energy Plc confidently stated that, “We have proven we have the financial strength and credibility to attract international finance into Nigeria’s energy sector and this will help us in our aim to deliver energy transition and provide cleaner, more reliable and more affordable energy for Nigeria’s young and growing population.”
Since it began operations in 2010, the company has witnessed exponential growth and significantly impacted different sectors of the Nigerian economy in the last 12 years. Today Seplat Energy’s gas business is contributing about 30 per cent of Gas to Power in Nigeria, which significantly boosts the country’s development and domestic energy security. The provision of power has many positive implications for the country’s economy. Power availability supports industrial growth and advancement, SME stimulation, entrepreneurship development and job creation, amongst other dividends.
From inception, maintaining a healthy relationship with its strategic stakeholders has remained paramount for Seplat Energy. This determination has resulted in creating and retaining value and strong partnerships with the Company’s communities, investors, regulators, and other critical stakeholders.
Since 2010, Seplat Energy has invested over US$64million towards healthcare, education, economic empowerment/capacity building, infrastructure development and environmental stewardship initiatives. The social investment activities align with the United Nation’s Sustainable Development Goals whilst addressing local needs.
With over 98% of the Company’s workforce being Nigerians and local contractors accounting for over 90% of its annual contract spend, Seplat Energy is, indeed, a model of indigenization in Nigeria.
In July 2021, following the company’s name change from Seplat Petroleum Development Company to Seplat Energy, the Nigerian Exchange (NGX) Limited hosted Seplat Energy to a digital Closing Gong Ceremony, to commemorate the first dual Capital Markets Day between Lagos and London.
According to the Chief Executive Officer, NGX, Mr. Temi Popoola, “Over the last decade Seplat has established itself as a leading independent Nigerian energy company completing the first ever dual listing on the Premium Board of NGX and Main Market of the London Stock Exchange (LSE), an arrangement facilitated by the capital markets agreement between NGX and LSE. In 2014, Seplat Energy raised tier one capital via the Initial Public Offering of US$535 million, ranking as the largest ever capital raise for a Nigerian company since 2008, and the second largest ever for a Nigerian company. Certainly, NGX is proud to have been a trusted business partner to Seplat Energy over the years, and we assure its leadership of our support in achieving its strategic objectives.”
Along its sustainability journey, today, Seplat Energy remains committed to the development of its upstream business, advancement of Nigeria’s enormous gas resources and the achievement of a world-class capability in renewable energies.
The Company remains committed to its mission of leading Nigeria’s energy transition with accessible, affordable and reliable energy that drives social and economic prosperity for all.
