LSE:SEPL

Stock Analysis Report

Seplat Petroleum Development

Executive Summary

Seplat Petroleum Development Company Plc, an oil and gas company, explores for, develops, and produces oil and gas in Nigeria.


Snowflake Analysis

Very undervalued with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Seplat Petroleum Development's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SEPL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

10.4%

SEPL

12.6%

GB Oil and Gas

-2.2%

GB Market


1 Year Return

-49.4%

SEPL

-36.6%

GB Oil and Gas

-25.9%

GB Market

Return vs Industry: SEPL underperformed the UK Oil and Gas industry which returned -39.8% over the past year.

Return vs Market: SEPL underperformed the UK Market which returned -25% over the past year.


Shareholder returns

SEPLIndustryMarket
7 Day10.4%12.6%-2.2%
30 Day-39.9%-21.8%-21.7%
90 Day-52.6%-35.9%-29.6%
1 Year-47.8%-49.4%-33.3%-36.6%-22.2%-25.9%
3 Year-15.8%-25.1%-14.5%-25.1%-16.1%-26.6%
5 Year-42.3%-54.0%1.4%-19.6%-4.6%-26.2%

Price Volatility Vs. Market

How volatile is Seplat Petroleum Development's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Seplat Petroleum Development undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SEPL (£0.58) is trading below our estimate of fair value (£2.09)

Significantly Below Fair Value: SEPL is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SEPL is good value based on its PE Ratio (1.5x) compared to the Oil and Gas industry average (3x).

PE vs Market: SEPL is good value based on its PE Ratio (1.5x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: SEPL is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: SEPL is good value based on its PB Ratio (0.2x) compared to the GB Oil and Gas industry average (0.4x).


Next Steps

Future Growth

How is Seplat Petroleum Development forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEPL's forecast earnings growth (12.9% per year) is above the savings rate (0.5%).

Earnings vs Market: SEPL's earnings (12.9% per year) are forecast to grow slower than the UK market (15.6% per year).

High Growth Earnings: SEPL's earnings are forecast to grow, but not significantly.

Revenue vs Market: SEPL's revenue (17.5% per year) is forecast to grow faster than the UK market (2.4% per year).

High Growth Revenue: SEPL's revenue (17.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SEPL's Return on Equity is forecast to be low in 3 years time (17.7%).


Next Steps

Past Performance

How has Seplat Petroleum Development performed over the past 5 years?

20.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEPL has high quality earnings.

Growing Profit Margin: SEPL's current net profit margins (37.8%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: SEPL's earnings have grown significantly by 20.9% per year over the past 5 years.

Accelerating Growth: SEPL's earnings growth over the past year (80.1%) exceeds its 5-year average (20.9% per year).

Earnings vs Industry: SEPL earnings growth over the past year (80.1%) exceeded the Oil and Gas industry 47.5%.


Return on Equity

High ROE: SEPL's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

How is Seplat Petroleum Development's financial position?


Financial Position Analysis

Short Term Liabilities: SEPL's short term assets ($933.4M) exceed its short term liabilities ($623.8M).

Long Term Liabilities: SEPL's short term assets ($933.4M) exceed its long term liabilities ($843.3M).


Debt to Equity History and Analysis

Debt Level: SEPL's debt to equity ratio (43.8%) is considered high.

Reducing Debt: SEPL's debt to equity ratio has increased from 42.1% to 43.8% over the past 5 years.

Debt Coverage: SEPL's debt is well covered by operating cash flow (42.8%).

Interest Coverage: SEPL's interest payments on its debt are well covered by EBIT (19.5x coverage).


Balance Sheet

Inventory Level: SEPL has a high level of physical assets or inventory.

Debt Coverage by Assets: SEPL's debt is covered by short term assets (assets are 1.2x debt).


Next Steps

Dividend

What is Seplat Petroleum Development's current dividend yield, its reliability and sustainability?

13.46%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: SEPL's dividend (14.03%) is higher than the bottom 25% of dividend payers in the UK market (2.67%).

High Dividend: SEPL's dividend (14.03%) is in the top 25% of dividend payers in the UK market (7.36%)


Stability and Growth of Payments

Stable Dividend: SEPL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SEPL has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.6%), SEPL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SEPL's dividends in 3 years are forecast to be well covered by earnings (37.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.8yrs

Average management tenure


CEO

Austin Avuru (60yo)

9.92s

Tenure

US$2,992,000

Compensation

Mr. Ojunekwu Augustine Avuru also known as Austin, has been the Chief Executive Officer of Seplat Petroleum Development Company Plc since May 1, 2010 and serves as its Managing Director. Mr. Avuru is an o ...


CEO Compensation Analysis

Compensation vs Market: Austin's total compensation ($USD0.00) is below average for companies of similar size in the UK market ($USD1.02M).

Compensation vs Earnings: Austin's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Ojunekwu Avuru
CEO, MD & Executive Director9.92yrsUS$2.99mno data
Roger Brown
CFO & Executive Director6.75yrsUS$1.59m0.35% $1.2m
Effiong Okon
Operations Director & Director2.25yrsno datano data
Andrew Dymond
Head of Investor Relationsno datano datano data
Isaiah Odeleye
General Manager of Legalno datano datano data
Mirian Kachikwu
General Counselno datano datano data
Edith Onwuchekwa
Company Secretary and Chief Governance & Compliance Officer0.83yrno datano data
Chioma Nwachuku
General Manager of External Affairs & Communicationsno datano datano data
Olubusola Ogunbanwo
Head of Asset Development7.75yrsno datano data
Jonah Amedu
Head of Petroleum Engineeringno datano datano data

6.8yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SEPL's management team is seasoned and experienced (6.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ojunekwu Avuru
CEO, MD & Executive Director9.92yrsUS$2.99mno data
Roger Brown
CFO & Executive Director6.75yrsUS$1.59m0.35% $1.2m
Effiong Okon
Operations Director & Director2.25yrsno datano data
Michael Alexander
Senior Independent Non-Executive Director6.83yrsUS$438.00k0.020% $69.9k
Basil Omiyi
Independent Non-Executive Director7.08yrsUS$234.00k0.086% $300.6k
George Malloch-Brown
Independent Non-Executive Director6.25yrsUS$207.00k0.0055% $19.3k
Ambrosie Bryant Orjiako
Chairman10.08yrsUS$1.01m2.19% $7.6m
Charles Okeahalam
Independent Non-Executive Director7.08yrsUS$221.00k0.086% $300.6k
Ifueko Omoigui-Okauru
Independent Non-Executive Director7.08yrsUS$228.00k0.017% $57.8k
Damian Dodo
Independent Non-Executive Director5.83yrsUS$194.00kno data

7.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: SEPL's board of directors are considered experienced (7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Seplat Petroleum Development Company Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seplat Petroleum Development Company Plc
  • Ticker: SEPL
  • Exchange: LSE
  • Founded: 2009
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: UK£349.220m
  • Shares outstanding: 575.32m
  • Website: https://seplatpetroleum.com

Number of Employees


Location

  • Seplat Petroleum Development Company Plc
  • 16A Temple Road
  • Ikoyi
  • Lagos
  • Nigeria

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SEPLLSE (London Stock Exchange)YesOrdinary SharesGBGBPApr 2014
SEPLATNGSE (Nigerian Stock Exchange)YesOrdinary SharesNGNGNApr 2014
134DB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 2014
SEPLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPApr 2014

Biography

Seplat Petroleum Development Company Plc, an oil and gas company, explores for, develops, and produces oil and gas in Nigeria. It operates a portfolio of assets in the Niger Delta region, including a 45% interest in the OML 4 that covers an area of 267 square kilometers; a 45% interest in OML 38 that covers an area of 2,094 square kilometers; and a 45% interest in OML 41 that covers an area of 291 square kilometers. The company also holds a 40% non-operated working interest in OPL 283 marginal field area and is located in the northern onshore depo-belt of the Niger Delta; a 40% in OML 53 that covers an area of 1,585 square kilometers and is located onshore in the north eastern Niger Delta; and interest in OML 55 that covers an area of 840 square kilometers and is located in the south eastern Niger Delta. Seplat Petroleum Development Company Plc was founded in 2009 and is based in Lagos, Nigeria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/03 22:04
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.