Nigerian energy magnates Austin Avuru and ABC Orjiako will earn a dividend of $4.34 million from their equity stake in Seplat Energy Plc. The dividend will be paid from Seplat’s 2021 first half profit.
Seplat Energy is the largest listed oil company on the Nigeria Exchange (NGX).
In May 2021, the company announced a name change from Seplat Petroleum Development to Seplat Energy, reflecting its interest in leading Nigeria’s energy transition and diversification by offering an optimal mix of energy for the country’s future needs.
Avuru and Orjiako, who formed the energy company in 2009 through the partnership of Shebah Petroleum Development Company and Platform Petroleum Joint Ventures, are both credited for building Seplat into one of Nigeria’s most successful indigenous independent oil and gas companies.
Their joint stake of nearly 13-percent in the company will set them on course to pocket a total dividend of $4.3 million from profits at the end of the first half of 2021.
Seplat’s transition into a full-fledged energy company in May coincided with its rebound from a loss of $145.3 million in the first half of last year to a pretax profit of $62.1 million in the first half of 2021. This impressive performance came on the back of a 32.3-percent rise in revenue from $233.5 million last year to $308.8 million.
In line with its growth back to profit, Seplat’s board of directors recommended a dividend of $0.025 per share for shareholders at the end of the second quarter of its financial year, taking the total dividend declared for the first half of 2021 to $0.050 per share.
The move aligns with the company’s decision to pay shareholders quarterly dividends under its dividend distribution schedule.
Avuru and Orjiako hold an equity stake of 8.32 percent and 6.43 percent in Seplat Energy are expected to pocket a dividend of $2.45 million and $1.89 million, respectively.
This amounts to a total dividend payment of $4.34 million for the Nigerian energy magnates.
