Roger Brown, the Chief Executive Officer (CEO) of Seplat Energy, has revealed that the sale and purchase agreement to acquire the entire share capital belonging to Mobil Producing Nigeria Unlimited (MPNU), was awaiting presidential approval.
Brown made this disclosure as he commented on the company’s audited results for 2022, in which a rise in profit before tax by 15% to N87 billion from N71 billion year-on-year, was recorded.
Noting that the company is looking forward to concluding before President Muhammadu Buhari’s tenure elapses, the Seplat chief said the acquisition was expected to attract a $1.28 million, plus up to $300 million contingent consideration.
“We are continuing to pursue the presidential approval received on August 8, 2022, for the MPNU acquisition and we remain focused on concluding the transaction within the remaining term of President Buhari before a new president is sworn into office at the end of May 2023,” Brown noted.
Seplat Energy’s financial performance
According to Seplat, it generated cash from its operations to the tune of N242.4 billion from N150.9 billion year-on-year, rising by 52%, while growing revenue by 30% to N404 billion from N294 billion in 2021 and gross profit soaring by 63% to N197 billion from N114 billion year-on-year.
Seplat Energy, however, said it would be paying a US7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year.
This amounts to a full-year dividend of US15 cents, representing a dividend yield of around 11% at the current London Stock Exchange share price.
