Seplat announces dividend amid profit decline due to forex losses

In a recent financial update, Seplat Energy Plc has declared an interim dividend for its shareholders, even as it faces headwinds from foreign exchange losses. Seplat announced a 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.

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.

Seplat’s Chief Financial Officer, Emeka Onwuka, had previously noted on Wednesday 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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.