Seplat Energy’s stock gained over 20% in the first week of October, fueled by renewed bullish momentum that began in late September following a period of stagnation throughout July and August.
On September 27, 2024, Seplat revealed that Tierce Investments Ltd., a firm fully owned by Udo Udoma, had acquired 22,571 ordinary shares in the company.
Following this disclosure, Seplat’s stock stabilized briefly before a sharp rally on October 3rd and 4th, with weekly trading volume spiking to 818,000 shares.
The stock surged over 20% in early October, amid positive events emerging at the end of September.
Share Price Trend
Seplat has been on a long-term uptrend since last year, with 2024 marking significant milestones in its performance.
The stock broke through the N3,000 mark in January, fueled by a volume of over 2 million shares, achieving a 33% gain to close the month at N3,074 per share. Seplat then surpassed N3,300 in February, though the upward momentum briefly stalled in March and April.
However, by May, the stock regained strength, driven by monthly trading volumes of 2.6 million shares, and continued its rally through June.
After a slowdown in July and August, Seplat surged again in the last week of September, breaking the critical N4,000 mark and posting a 30% rise from the end of September through the first week of October.
Drivers of the Bullish Sentiment
- On July 30, 2024, Seplat Energy Plc made an announcement, declaring an interim dividend of US3 cents per ordinary share for shareholders on record as of August 13, 2024.
- This move was accompanied by impressive financial results release, with the company reporting a staggering 3,480% year-on-year surge in pre-tax profit.
- In addition to the remarkable profit growth, Seplat’s revenue for the second quarter of 2024 reached N306.4 billion, representing a 142.5% increase from the N126.3 billion generated in Q2 2023.
- These strong financial results likely boosted investor confidence, which was further enhanced by news of Udo Udoma, acquiring additional shares through Tierce Investments Ltd on September 27, 2024.
- Adding to the positive events, President Bola Tinubu recently announced that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had approved ExxonMobil’s $1.28 billion sale of its onshore assets to Seplat.
These events have likely generated a wave of positive sentiment, propelling Seplat’s stock by more than 30% between late September and early October.
What the President said
President Tinubu affirmed the significance of the ExxonMobil-Seplat deal, stating, “The ExxonMobil divestment will receive ministerial approval in a matter of days, following NUPRC’s clearance in line with the Petroleum Industry Act.”
He further noted that the process is consistent with the pattern of other successful divestments within the oil and gas sector, highlighting the government’s focus on ensuring a seamless transition that adheres to regulatory standards.
Meanwhile, Seplat Energy’s stock continues its upward trajectory, buoyed by strong market momentum.
