Exxon deal, two other factors that made Seplat’s owners, Orjiako, Avuru, others N50.54bn richer

Seplat chairman, ABC Orjiako, former Chief Executive Officer, Austin Avuru, and other shareholders of the company saw their networth increase by 9.99% on Tuesday, following series of reports emanating from the oil & gas firm since Friday.

The first was on February 25, Seplat announced that the company had acquired Mobil Producing Nigeria Unlimited from United States investor, Exxon Mobil – a deal worth over $1.283 million plus $300 million contingent.

Three days later, on February 28, the domestic oil giant informed shareholders and the investing public that it had exited an operating loss of $31.7 million suffered in 2020, after generating an operating profit of $250.7 million for the year 2021.

During the same period, stockholders read from the 2021 financial statements released on Monday that Seplat grew oil & gas revenue by 38.2% from the $530.5 million generated in 2020 to $733.2 million.

Shockingly, despite the improved earnings, Seplat management didn’t hike the company’s dividend payout to shareholders for 2021 period, concluding on $0.10 per share, same amount paid out in 2020.

However, having the ability to match 2020 payment, rather than cut the dividend, as well as sealing growth deal with Exxon, and exiting operational loss, was enough motivation for shareholders and the capital market to remain bullish on Seplat, renewing their interest in the firm.

This led to an increased demand for Seplat stock among capital market investors, causing the share value to rise by 9.99%, as shareholders held on to their holdings.

READ ALSO: Another oil giant exits Nigeria as Seplat acquires Mobil Oil from US investor, Exxon Mobil

Due to the increased demand and rise in asking price for the share, analysis of Seplat trading activity by Ripples Nigeria showed that shareholders total investment grew to N556.55 billion on Monday – after lack of growth for two days – from N506 billion.

Persons and entities holding on to Seplat shares, such as substantial stockholders, Orjiako and Avuru, including minority shareholders, earned N50.54 billion from the investment growth induced by renewed interest of the capital market in the oil & gas firm.

Orjiako’s share out of this amount was N3.24 billion, while that of Seplat’s former CEO, now turned Non-executive, Avuru, was put at N4.14 billion, with minority stockholders sharing the balance.

The chairman’s networth in Seplat rose to N35.76 billion from N32.52 billion, and Avuru’s fortune in the oil company moved from N41.48 billion to N45.63 billion.

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