Two groups of shareholdeers of Nigeria’s indigenous oil giant, Seplat Energy have vouched for the “authenticity, sanctity and correctness of the company’s half-year results, which reported stellar performance”. The groups – The Eagle Eye Shareholders of Seplat Energy, and Concerned Shareholders of Seplat Energy – also expressed confidence in the capability of the company’s management to deliver superior returns and place the organisation on the path of sustainable growth.
The move by the groups of shareholders is coming on the heels of allegations by some other shareholders against the dual-listed firm regarding its half-year results which ended June 2023.
In a statement, Eagle Eye shareholders described the recent joint press conference by the leader of the Independent Shareholders Association of Nigeria (ISAN), Mr. Moses Igbrude, and the Executive Director of Make A Difference Initiative (MADI), Mr. Lemmy Ughegbe as a platform to “regurgitate stale and erroneous allegations against Seplat.”
The shareholders group said that, ‘as representatives of the majority shareholders of Seplat Energy, we are appalled by this renewed media offensive, after a seeming truce ostensibly occasioned by the reversal suffered in the law courts, by this group of individuals…”.
“As representatives of the majority shareholders”, the statement continued, “we were alarmed that a company in which we have made a significant investment and from which we derive ample returns will be unduly maligned and castigated in public by a clique of 13 minority shareholders holding less than 800 shares out of 589 million shares (0.0001% of the company’s issued shares).
“Seplat’s half-year results showed strong cash generation of $259 million and moreover demonstrated continued operational excellence and resilience as evidenced by an unrivaled safety record having now clocked up a commendable 4.2 million hours without a Lost Time Injury.
“A future assured company, of which every well-meaning shareholder should be proud of, Seplat extended the Share Sale and Purchase Agreement for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited to preserve the transaction. Evidently, revenues rose by 3.8 per cent to $547.0 million (including overlight of $504 million on improved production, offset by lower oil price, cash generation of $259.1 million, funding capex (capital expenditure) of $80.8 million and improved shareholder returns. The company’s balance sheet remains strong with $381.0 million cash at the bank, despite the impact of the devaluation of the Naira on USD (United States Dollars) cash balances”.
The Eagle Eye shareholders of Seplat Energy restated its “unwavering confidence in the board and management of Seplat Energy”.
Piqued by what has been described as the “mischievousness of some disgruntled persons”, another group of shareholders of Seplat Energy has warned such detractors to stop their senseless attack on the company and its management.
Also, Concerned Shareholders of Seplat Energy cautioned ISAN to desist from its action against the company and its management.
Led by Messrs Adetunji B. Ajani, David Adekanmbi, and Ademola Timothy Adejuwon, the group condemned recent adverse media reports, which it said emanated from ISAN.
The group denied recent media reports alleging “likely impropriety on the part of the management of Seplat in its application of General Expenses”.
“We wish to state unequivocally that the allegations are strewn in half-truths, largely fabricated and maliciously projected to diminish the stature of Seplat Energy and tarnish the image of its officials. If anything, the unfounded allegations depict blatant ignorance of financial management. As Concerned Shareholders of Seplat Energy, we are unfazed by the orchestrated ceaseless attacks on Seplat Energy”.
The group further said that the “spate of unfounded campaigns of calumny, which resorted to a series of lawsuits and undue public attention that Seplat was subjected to in the last few months are capable of negatively affecting our investments and invariably returns.
“As Concerned Shareholders of Seplat, we will no longer sit by and watch our company and its management, which we hold in high esteem, come under constant attack especially when the allegations… are bereft of truth and are outrightly false…
“It is evident that shareholders of Seplat have consistently enjoyed high dividend payouts while capital appreciation on our stocks has been largely phenomenal, a reflection and testament to the management’s capability, market confidence, bright future, and sustained progress of the company. We, therefore, use this opportunity to reconfirm our support for the leadership of Seplat, ably led by Mr. Roger Brown. We urge them not to be distracted but to continue the good work.
“We believe that no genuine investor in his normal sense will do anything that can bring down the fortune of a company that he has investments in, and this calls to question the motives of those behind the incessant accusations and relentless attacks on the company in the last few months.
“It is an affirmation of the sterling quality of Seplat’s management to have remained focused in the heat of needless lawsuits and still post good returns in the half-year results that ended 2023. The company’s half-year results showed strong cash generation of $259 million and demonstrated continued operational excellence and resilience as evidenced by an unrivaled safety record of 4.2 million hours without a Lost Time Injury.
“The company recorded a rise in revenue by 3.8 per cent to N278.3 billion from N 219.2 billion year on year. It also declared a Q2 2023 dividend of US 3 cents per share, in line with a higher core annual dividend of US 12 cents. Seplat also grew its 2023 H1 gross profit to N140.6 billion from N114.1 billion year on year. The operating performance for the period was solid, given a 2 per cent increase in production, which is benefiting from the Amukpe-Escravos Pipe Line and increased output from OML 40”.
The Concerned Shareholders of Seplat Energy added: To our excitement also, we are pleased and proud of the good news, which ought to be of interest to any genuine investor that Seplat has extended the Share Sale and Purchase Agreement for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited =to preserve the transaction. Evidently, revenues rose by 3.8 per cent to $547.0 million (including an over-light of $504 million on improved production, offset by lower oil price, cash generation of $259.1 million, funding capex of $80.8 million, and improved shareholder returns.
“The company’s balance sheet remains strong with $381.0 million cash at the bank, despite the impact of the devaluation of the Naira on USD cash balances.
“We enjoin the Corporate Affairs Commission, Securities and Exchange Commission, Financial Reporting Council of Nigeria, the Independent Corrupt Practices and Other Related Offences Commission and the Economic and Financial Crimes Commission to pay no heed to the baseless allegations”.
Breezy NewsNG reached out to Ughegbe but he is yet to response to the allegations by the two groups of Seplat’s shareholders.
