capital market

Seplat Energy investors earn N77bn in July stocks trading

Published

2 years ago

August 5, 2022

Investors of Seplat Energy Plc earned about N76.79 billion from the shares of the company in the month of July despite sustained sell pressure witnessed on shares of some blue-chip firms quoted on the Nigerian Exchange.

A report obtained from the NGX explained that the oil and gas index which measures the performance of the oil and gas firms quoted on the NGX grew marginally by 2 per cent or 10.94 basis points to closed at 556.28 index point at the end of trading on July 2022 as against the opening index of 545.34 index points at the beginning of the July 2022 trading

It showed that the oil firm stock gained by 10 per cent month to date to N1,430.50 per share from N1,300 it opened the month trading.

Further analysis showed that Seplat Energy closed July at N1,3430.50 per share and N841,769 billion in market capitalisation on the Nigerian Stock Exchange (NGX) as against N1,300 per share and N764.977 billion in market capitalisation at the beginning of trading on July, hence earned a gain of N76.792 billion or 10 per cent.

Seplat Petroleum Development began the year with a share price of N650.00 and has since gained 120 per cent on that price valuation, ranking it sixth on the NGX in terms of year-to-date performance

The oil and gas industry’s growth and profitability are still dependent on operator pricing and quantity, Agusto & Co has said.

The rating agency who stated this in a 2022 Oil & Gas Storage Industry Report said the decreased profit margins, idle or underused capacity, and constrained ability to pay operating and finance expenses could be countered by higher throughput revenue, product diversification plans and efficient downstream company operation.

Seplat Energy Plc reported a rise of 238 per cent in its half year 2022 profit before tax (PBT) to $209.9 million from $62.1 million year-on-year.

The company also maintained a strong balance sheet with $350 million cash at bank.In the company’s unaudited results for the six months ended 30 June 2022, revenue for the period under review also appreciated by 71 per cent to $527 million from $308.8m year-on-year, with a dividend of US$2.5 cents per share declared.

The indigenous energy company also reported a 208.5 per cent rise in gross profit to $274.3 million from $88.9 million year-on-year, and has committed to stopping routine flaring by the end of 2024.

Revenues up 71 per cent from 6M 2021 to $527.0 million, higher realised oil prices of $107/bbl

Commenting on the/ results, which were released to the NSE and LSE, Roger Brown, Chief Executive Officer, Seplat Energy Plc said, “Production increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe-Escravos Pipeline.

“Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95 per cent interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.

“We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer. We have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states.

“All of these initiatives demonstrate our strategic commitment to build a sustainable company that delivers energy transition for the benefit of all Nigerians.”

capital market

Financial expert seeks alignment of FG’s fiscal policy with CBN’s monetary policy

Published

1 day ago

April 18, 2024

NewsDirect

A financial expert, Mr Eddie Osarenkhoe, has advised the Federal Government to align its fiscal policy with the Central Bank of Nigeria’s monetary policy to achieve economic stability.

Osarenkhoe, the immediate past President of Finance Houses Association of Nigeria (FHAN), gave the advice while speaking with newsmen on Wednesday in Ota, Ogun.

He attributed the current steady appreciation of the naira to CBN’s reforms and the country’s ability to pay some of its debts.

Osarenkhoe applauded the CBN reforms which, he said, had helped to sustain the steady appreciation of the naira against the dollar.

The financial expert stated that CBN was able to check speculators in the foreign exchange, thus resulting in continuous appreciation of the nation’s currency.

“If the federal government is able to come up with fiscal policy in alignment with that of CBN, it will help the nation’s economy a great deal,” he said.

According to him, the economy needs to improve through exports to enable the country to earn more foreign exchange.

The naira has shown a remarkable strength against the US dollar, trading below N1,000 at the official market.

This development has been attributed to the strategic financial policies being implemented by the President Bola Tinubu-led administration and CBN.

capital market

Investors lose N457bn as bearish sentiment continues

Published

1 day ago

April 18, 2024

NewsDirect

Investors in the Nigerian equities market lost N457 billion at the end of trading on Wednesday.

This followed the dip in the share value of Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors on the trading floor today.

After five hours of trading at the capital market, the equity capitalisation crashed to N56.5 trillion from N56.9 trillion posted by the bourse on Tuesday.

Similarly, the All-Share Index (ASI) fell below the 100,000-mark to 99,908.89 from 100,717.21 achieved by the bourse the previous day.

The market breadth was negative as 17 stocks advanced, 26 declined, while 78 others remained unchanged in 9, 074 deals.

Ikeja Hotel topped the gainers’ list with +10.00 percent to close at N7.26 from its previous N6.60 per share.

Fidelity Bank, Academy, Morison, and Prestige also increased their share prices by 9.88 percent, 9.77 percent, 9.71 percent, and 9.26 percent respectively.

On the flip side, Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors led other price decliners as they shed 10.00 percent, 9.79 percent, 9.79 percent and 9.72 percent each off their share prices.

UBA recorded the highest volume by trading 55.013 million shares valued at N1.28 billion in 1,092 deals followed by Zenith Bank with 47.029 million shares worth N1.69 billion traded by investors in 907 deals.

Access Corp traded 44.986 million shares valued at N789 million in 845 deals.

On the value index, Zenith Bank recorded the highest value for the day trading stocks worth N1.69 billion in 907 deals followed by UBA which traded equities worth N1.284bn in 1,092 deals.

Access Corp traded stocks worth N789 million in 845 deals.

capital market

Investors lose N598.69bn as NGXASI declines by 1.04%

Published

2 days ago

April 17, 2024

NewsDirect

The Nigerian stock market ended with a negative market breadth, closing 1,059.91 points lower.

The NGX All-Share Index declined by 1.04 percent to close at 100,717.21 basis points, compared to the previous day’s loss of 0.53 percent to close at 101,777.12 basis points. The NGX Market CAP also recorded a loss of N598.69bn Naira terms. YTD, the NGXASI Stands at 34.70 percent.

The total volume traded advanced by 23.65 percent to close at N403.89m, valued at N8.38bn, and traded in 10,170 deals. ACCESSCORP was the most traded stock by volume with N62.93m, while GTCO was the most traded stock by value with N1.74bn units traded.

The Gote Index declined by 0.46 percent to close at 347.33 basis points, while the Toni index declined by 3.94 percent to close at 565.65 basis points.

At the close of trading, the market recorded 7 gainers, 50 losers, and 67 unchanged. MORISON topped the gainers’ list, while CORNERST topped the losers’ list.

Thus, the market closed with a negative market breadth index (MBI) of -0.64x.