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

Flawless balance sheet and undervalued.


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

-2.4%

LSE:SEPL

-2.8%

GB Oil and Gas

0.2%

GB Market


1 Year Return

-20.4%

LSE:SEPL

2.7%

GB Oil and Gas

-2.0%

GB Market

SEPL underperformed the Oil and Gas industry which returned 2.7% over the past year.

SEPL underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2% over the past year.


Share holder returns

SEPLIndustryMarket
7 Day-2.4%-2.8%0.2%
30 Day-2.2%-0.3%1.3%
90 Day-8.1%-3.1%0.08%
1 Year-15.5%-20.4%7.5%2.7%2.3%-2.0%
3 Year67.9%50.2%46.3%28.3%27.2%11.2%
5 Year-40.3%-53.1%12.8%-6.4%33.9%6.3%

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

Seplat Petroleum Development's share price is below the future cash flow value, and at a moderate discount (> 20%).

Seplat Petroleum Development's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Seplat Petroleum Development is good value based on earnings compared to the GB Oil and Gas industry average.

Seplat Petroleum Development is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Seplat Petroleum Development earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Seplat Petroleum Development is good value based on assets compared to the GB Oil and Gas industry average.


Next Steps

Future Growth

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

-0.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Seplat Petroleum Development's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Seplat Petroleum Development's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Seplat Petroleum Development's revenues are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

Seplat Petroleum Development's earnings are expected to decrease over the next 1-3 years, this is below the United Kingdom of Great Britain and Northern Ireland market average.

Seplat Petroleum Development's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Seplat Petroleum Development is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

-12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Seplat Petroleum Development's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Seplat Petroleum Development's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Seplat Petroleum Development's 1-year earnings growth is negative, it can't be compared to the GB Oil and Gas industry average.


Return on Equity

Seplat Petroleum Development has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Seplat Petroleum Development used its assets more efficiently than the GB Oil and Gas industry average last year based on Return on Assets.


Return on Capital Employed

Seplat Petroleum Development has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Seplat Petroleum Development's financial position?


Financial Position Analysis

Seplat Petroleum Development is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Seplat Petroleum Development's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Seplat Petroleum Development's level of debt (20.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (45.2% vs 20.9% today).

Debt is well covered by operating cash flow (156.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 9x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 2.7x debt.


Next Steps

Dividend

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

7.08%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Unable to evaluate Seplat Petroleum Development's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Seplat Petroleum Development's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Seplat Petroleum Development has not reported any payouts.

Unable to verify if Seplat Petroleum Development's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Seplat Petroleum Development has not reported any payouts.


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (5.1x coverage).


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?

6.0yrs

Average management tenure


CEO

Austin Avuru (60yo)

9.2yrs

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

Insufficient data for Austin to establish whether their remuneration is reasonable compared to companies of similar size in United Kingdom of Great Britain and Northern Ireland.

Austin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

6.0yrs

Average Tenure

57.5yo

Average Age

The average tenure for the Seplat Petroleum Development management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

The tenure for the Seplat Petroleum Development board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Recent Insider Transactions

SellUK£1,529,17627 Nov 18
Shebah Petroleum Development Company Ltd.
EntityCompany
Shares1,200,000
Max PriceUK£1.29
SellUK£129,52431 Aug 18
Michael Alexander
EntityIndividual
Role
Lead Director
Shares95,238
Max PriceUK£1.36
BuyUK£129,52431 Aug 18
Michael Alexander
EntityIndividual
Role
Lead Director
Shares95,238
Max PriceUK£1.36

Ownership Breakdown


Management Team

  • Roger Brown (49yo)

    CFO & Executive Director

    • Tenure: 6.0yrs
    • Compensation: $1.59m
  • Olubusola Ogunbanwo (58yo)

    Head of Asset Development

    • Tenure: 7.0yrs
  • Mirian Kachikwu

    General Counsel

  • Effiong Okon

    Operations Director & Director

    • Tenure: 1.4yrs
  • Andrew Dymond

    Head of Investor Relations

  • Isaiah Odeleye (68yo)

    General Manager of Legal

  • Jonah Amedu (57yo)

    Head of Petroleum Engineering

  • Chioma Nwachuku (55yo)

    General Manager of External Affairs & Communications

  • Austin Avuru (60yo)

    Chief Executive Officer

    • Tenure: 9.2yrs
    • Compensation: $2.99m
  • Edith Onwuchekwa

    Company Secretary and Chief Governance & Compliance Officer

    • Tenure: 0.1yrs

Board Members

  • Charles Okeahalam (56yo)

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: $221.00k
  • Michel Hochard (69yo)

    Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: $140.00k
  • George Malloch-Brown (66yo)

    Independent Non-Executive Director

    • Tenure: 5.5yrs
    • Compensation: $207.00k
  • Roger Brown (49yo)

    CFO & Executive Director

    • Tenure: 6.0yrs
    • Compensation: $1.59m
  • Effiong Okon

    Operations Director & Director

    • Tenure: 1.5yrs
  • Ifueko Omoigui-Okauru

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: $228.00k
  • Ambrosie Orjiako (58yo)

    Chairman

    • Tenure: 9.3yrs
    • Compensation: $1.01m
  • Austin Avuru (60yo)

    Chief Executive Officer

    • Tenure: 9.2yrs
    • Compensation: $2.99m
  • Basil Omiyi

    Independent Non-Executive Director

    • Tenure: 6.3yrs
    • Compensation: $234.00k
  • Mike Alexander (71yo)

    Senior Independent Non-Executive Director

    • Tenure: 6.1yrs
    • Compensation: $438.00k

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£642.402m
  • Shares outstanding: 568.50m
  • Website: Click here

Number of Employees


Location

  • Seplat Petroleum Development Company Plc
  • 25A Lugard Avenue
  • 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 Analysis2019/07/20 22:17
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
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.