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

Fundamentals

Very undervalued with flawless balance sheet.


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


Market Performance


7 Day Return

-1.9%

SEPL

1.0%

GB Oil and Gas

2.0%

GB Market


1 Year Return

-23.9%

SEPL

-5.4%

GB Oil and Gas

3.3%

GB Market

Return vs Industry: SEPL underperformed the UK Oil and Gas industry which returned -5.4% over the past year.

Return vs Market: SEPL underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

SEPLIndustryMarket
7 Day-1.9%1.0%2.0%
30 Day2.5%0.5%-1.0%
90 Day-9.7%-5.2%-1.7%
1 Year-19.2%-23.9%-0.6%-5.4%8.3%3.3%
3 Year27.5%14.1%31.9%14.7%19.0%4.5%
5 Year-33.5%-47.8%32.1%7.7%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: SEPL (£1.05) is trading below our estimate of fair value (£10.14)

Significantly Undervalued: SEPL is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: SEPL is good value based on its PE Ratio (3.5x) compared to the Oil and Gas industry average (6.6x).

PE vs Market: SEPL is good value based on its PE Ratio (3.5x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: SEPL is good value based on its PEG Ratio (0.3x)


Price Based on Value of Assets

PB vs Industry: SEPL is good value based on its PB Ratio (0.4x) compared to the GB Oil and Gas industry average (0.7x).


Next Steps

Future Growth

How is Seplat Petroleum Development expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: SEPL's forecast earnings growth (9.9% per year) is above the savings rate (1.2%).

Earnings vs Market: SEPL's earnings (9.9% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: SEPL's revenue (10.5% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: SEPL's revenue (10.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: SEPL's Return on Equity is forecast to be low in 3 years time (11.3%).


Next Steps

Past Performance

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

-2.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SEPL's earnings have declined by -2.2% per year over the past 5 years.

Accelerating Growth: SEPL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SEPL had negative earnings growth (-36.4%) over the past year, making it difficult to compare to the Oil and Gas industry average (29.4%).


Return on Equity

High ROE: SEPL's Return on Equity (12.8%) is considered low.


Return on Assets

ROA vs Industry: SEPL has a higher Return on Assets than the Oil and Gas industry average last year.


Return on Capital Employed

ROCE Improving: SEPL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Seplat Petroleum Development's financial position?


Financial Position Analysis

Short Term Liabilities: SEPL's short term assets ($811.9M) exceeds its short term liabilities ($433.4M)

Long Term Liabilities: SEPL's short term assets (811.9M) exceeds its long term liabilities (466.0M)


Debt to Equity History and Analysis

Debt Level: SEPL's debt to equity ratio (20.6%) is considered satisfactory

Reducing Debt: SEPL's debt to equity ratio has reduced from 46.6% to 20.6% over the past 5 years.

Debt Coverage: SEPL's debt is well covered by operating cash flow (146%).

Interest Coverage: SEPL's interest payments on its debt are well covered by EBIT (13.6x 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 2.318060x debt).


Next Steps

Dividend

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

7.53%

Expected Dividend Yield


Dividend Yield vs Market

company0%marketbottom25%2.0%markettop25%5.4%industryaverage4.2%forecastin3Years7.5%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: Unable to evaluate SEPL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SEPL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if SEPL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SEPL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: SEPL is not paying a notable dividend for .


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SEPL's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Seplat Petroleum Development's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Austin Avuru (60yo)

9.4yrs

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 ($USD0.00) is too low to compare against companies of similar size in the UK market ($USD1.17M).

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


Management Age and Tenure

6.3yrs

Average Tenure

57.5yo

Average Age

Experienced Management: SEPL's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

6.6yrs

Average Tenure

60yo

Average Age

Experienced Board: SEPL's board of directors are considered experienced (6.6 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,529,17627 Nov 18
Shebah Petroleum Development Company Ltd.
EntityCompany
Shares1,200,000
Max PriceUS$1.29

Ownership Breakdown


Management Team

  • Edith Onwuchekwa

    Company Secretary and Chief Governance & Compliance Officer

    • Tenure: 0.3yrs
  • Austin Avuru (60yo)

    Chief Executive Officer

    • Tenure: 9.4yrs
    • Compensation: US$2.99m
  • Chioma Nwachuku (55yo)

    General Manager of External Affairs & Communications

    • Tenure: 0yrs
  • Roger Brown (49yo)

    CFO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$1.59m
  • Isaiah Odeleye (68yo)

    General Manager of Legal

    • Tenure: 0yrs
  • Olubusola Ogunbanwo (58yo)

    Head of Asset Development

    • Tenure: 7.3yrs
  • Jonah Amedu (57yo)

    Head of Petroleum Engineering

    • Tenure: 0yrs
  • Mirian Kachikwu

    General Counsel

    • Tenure: 0yrs
  • Andrew Dymond

    Head of Investor Relations

    • Tenure: 0yrs
  • Effiong Okon

    Operations Director & Director

    • Tenure: 1.8yrs

Board Members

  • Mike Alexander (71yo)

    Senior Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$438.00k
  • Basil Omiyi

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$234.00k
  • George Malloch-Brown (66yo)

    Independent Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: US$207.00k
  • Michel Hochard (69yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$140.00k
  • Ambrosie Bryant Orjiako (57yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: US$1.01m
  • Charles Okeahalam (56yo)

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$221.00k
  • Austin Avuru (60yo)

    Chief Executive Officer

    • Tenure: 9.4yrs
    • Compensation: US$2.99m
  • Ifueko Omoigui-Okauru

    Independent Non-Executive Director

    • Tenure: 6.6yrs
    • Compensation: US$228.00k
  • Roger Brown (49yo)

    CFO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$1.59m
  • Effiong Okon

    Operations Director & Director

    • Tenure: 1.8yrs

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£604.475m
  • Shares outstanding: 578.44m
  • 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% i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 22:29
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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