Seplat declares dividend payment in dual currencies

Seplat Energy Plc has declared an interim dividend payout of N29.9 per ordinary share for investors on both the Nigerian and London stock exchanges.

This declaration comes after the company confirmed that dividends over a nine-month period would be calculated using an exchange rate of N996.75 to the US dollar, even as it faces headwinds from foreign exchange losses.

According to the oil and gas firm, the payment method for the dividends is contingent on the shareholders’ status concerning their Capital Importation Certificate (CCI) and where their depository interests lie.

Datamax Registrars Limited will handle the USD payments for those eligible. In contrast, shareholders without a valid CCI will receive their dividends in Naira.

Despite this positive news for shareholders, Seplat disclosed a significant 18.9% drop in pre-tax profit for the nine-month period ending in September 2023, which amounted to N62.85 billion. The decline was mainly due to substantial foreign exchange losses, exacerbated by the devaluation of the Naira.

READ ALSO: Seplat’s Roger Brown in immigration mess, as FG goes after chairman, directors over job offer

Seplat’s Chief Financial Officer, Emeka Onwuka, had previously noted that an interim dividend of 3 US Cents per ordinary share would be offered, with the Naira equivalent pegged to the aforementioned exchange rate. This strategic move reflects Nigeria’s evolving financial environment and aims to accommodate the varied preferences of Seplat’s shareholder base.

The company’s approach to offer dividends in dual currencies aligns with broader financial trends in Nigeria and demonstrates Seplat’s commitment to meeting its shareholders’ needs amidst challenging economic conditions.

Join the conversation

Opinions

Support Ripples Nigeria, hold up solutions journalism

Balanced, fearless journalism driven by data comes at huge financial costs.

As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.

If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.

Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.

Donate Now