Austin Avuru, a Nigerian energy magnate and multimillionaire businessman, has seen the market value of his stake in Seplat Energy, Nigeria’s leading energy conglomerate, increase by millions of dollars recently as shares in the company surged by double digits.
Avuru, who stepped down from the energy group’s board on March 1, owns an 8.2-percent stake in Seplat Energy through his family business, AAH Holdings, a Lagos-based proprietary investment firm committed to advancing his financial and charitable interests.
According to Billionaires.Africa, the market value of his stake has climbed by N7.72 billion ($1858 million) in the past 21 days, as shares in the group have risen by 20 percent on the local bourse.
Since Feb. 23, the firm’s share price has climbed from N800 ($1.925) to N960 ($2.311) as of the time of writing, resulting in a total 20-percent gain for shareholders.
The market value of Avuru’s interest has grown by 20 percent due to the recent surge in Seplat Energy shares, from N38.6 billion ($92.9 million) on Feb. 23 to N46.32 billion ($111.48 million).
The spike in the company’s shares can be attributed to investors reacting to a barrage of announcements, including a final agreement to purchase the entire share capital of Mobil Producing Nigeria Unlimited for $1.58 billion, including contingent payment.
The planned ExxonMobil transaction is expected to boost oil output by 186 percent, from 51,000 barrels per day to 146,000 barrels per day, while liquid and gas reserves would increase by 170 percent and 14 percent, respectively, to 650 million barrels and 1,712 billion standard cubic feet of gas.
Despite a decline in oil output from 51,183 barrels per day to 47,693 barrels per day, Seplat Energy reported a 38.2-percent gain in income from $530.5 million in 2020 to $733.2 million at the end of 2021.
The group’s sales increased by double digits, contributing significantly to the company’s turnaround from an $85.3-million deficit in 2020 to a $117.1-million profit at the end of 2021.
