LSE:SEPL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Seplat Petroleum Development

Executive Summary

Seplat Petroleum Development Company Plc, operates in the oil and gas exploration and production, and gas processing activities in Nigeria.


Snowflake Analysis

Reasonable growth potential with adequate 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

Stable Share Price: SEPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.2%

SEPL

-1.5%

GB Oil and Gas

-1.1%

GB Market


1 Year Return

-51.5%

SEPL

-35.2%

GB Oil and Gas

-12.3%

GB Market

Return vs Industry: SEPL underperformed the UK Oil and Gas industry which returned -36.5% over the past year.

Return vs Market: SEPL underperformed the UK Market which returned -12.7% over the past year.


Shareholder returns

SEPLIndustryMarket
7 Day2.2%-1.5%-1.1%
30 Day-5.9%-3.8%-1.2%
90 Day0%-0.6%4.7%
1 Year-46.0%-51.5%-31.2%-35.2%-8.4%-12.3%
3 Year-35.0%-46.3%-8.9%-21.6%-7.7%-19.0%
5 Year-24.4%-41.5%14.5%-8.5%12.6%-12.6%

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?

6.73x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SEPL (£0.56) is trading above our estimate of fair value (£0.29)

Significantly Below Fair Value: SEPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SEPL is poor value based on its PE Ratio (6.7x) compared to the GB Oil and Gas industry average (6.6x).

PE vs Market: SEPL is good value based on its PE Ratio (6.7x) compared to the UK market (15.5x).


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 (0.5x).


Next Steps

Future Growth

How is Seplat Petroleum Development forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

51.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SEPL's forecast earnings growth (51.5% per year) is above the savings rate (1.2%).

Earnings vs Market: SEPL's earnings (51.5% per year) are forecast to grow faster than the UK market (22.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SEPL's revenue (14.4% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: SEPL's revenue (14.4% 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 (4.5%).


Next Steps

Past Performance

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

30.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SEPL has a large one-off loss of $134.3M impacting its June 30 2020 financial results.

Growing Profit Margin: SEPL's current net profit margins (10.8%) are lower than last year (28.7%).


Past Earnings Growth Analysis

Earnings Trend: SEPL's earnings have grown significantly by 30.9% 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 (-71.3%) over the past year, making it difficult to compare to the Oil and Gas industry average (-13.4%).


Return on Equity

High ROE: SEPL's Return on Equity (2.1%) 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 ($771.9M) exceed its short term liabilities ($508.7M).

Long Term Liabilities: SEPL's short term assets ($771.9M) do not cover its long term liabilities ($865.0M).


Debt to Equity History and Analysis

Debt Level: SEPL's debt to equity ratio (47.9%) is considered high.

Reducing Debt: SEPL's debt to equity ratio has reduced from 71% to 47.9% over the past 5 years.

Debt Coverage: SEPL's debt is well covered by operating cash flow (31.1%).

Interest Coverage: SEPL's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Next Steps

Dividend

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

13.67%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SEPL's dividend (13.67%) is higher than the bottom 25% of dividend payers in the UK market (1.89%).

High Dividend: SEPL's dividend (13.67%) is in the top 25% of dividend payers in the UK market (5.47%)


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 high payout ratio (92%), SEPL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

Roger Brown (50 yo)

0.083

Tenure

US$2,362,000

Compensation

Mr. Roger Thompson Brown has been the Chief Executive Officer of Seplat Petroleum Development Company Plc since July 31, 2020. Mr. Brown served as the Chief Financial Officer until July 31, 2020 and serves ...


CEO Compensation Analysis

Compensation vs Market: Roger's total compensation ($USD2.36M) is above average for companies of similar size in the UK market ($USD926.24K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Roger Brown
CEO & Executive Director0.083yrUS$2.36m0.35%
$ 1.1m
Effiong Okon
Operations Director & Director2.58yrsUS$1.33mno data
Emeka Onwuka
CFO & Executive Directorno datano 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 Officer1.17yrsno datano data
Chioma Nwachuku
General Manager of External Affairs & Communicationsno datano datano data
Olubusola Ogunbanwo
Head of Asset Development8.08yrsno datano data
Jonah Amedu
Head of Petroleum Engineeringno datano datano data
Ganiyu Bolaji
Head of Production & Field Operationsno datano datano data
Okechukwu Mba
General Manager of Commercialno datano datano data

1.8yrs

Average Tenure

57yo

Average Age

Experienced Management: SEPL's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Roger Brown
CEO & Executive Director0.083yrUS$2.36m0.35%
$ 1.1m
Effiong Okon
Operations Director & Director2.58yrsUS$1.33mno data
Emeka Onwuka
CFO & Executive Directorno datano datano data
Michael Alexander
Senior Independent Non-Executive Director7.17yrsUS$472.00k0.020%
$ 64.5k
Basil Omiyi
Independent Non-Executive Director7.42yrsUS$269.00k0.085%
$ 277.3k
George Malloch-Brown
Independent Non-Executive Director6.58yrsUS$209.00k0.0054%
$ 17.8k
Ambrosie Bryant Orjiako
Non-Executive Chairman10.42yrsUS$1.04m2.16%
$ 7.1m
Charles Okeahalam
Independent Non-Executive Director7.42yrsUS$229.00k0.085%
$ 277.3k
Olivier de Langavant
Non-Executive Director0.58yrno datano data
Nathalie Delapalme
Non-Executive Director1.08yrsUS$74.00kno data
Ifueko Omoigui-Okauru
Independent Non-Executive Director7.42yrsUS$241.00k0.016%
$ 53.3k
Damian Dodo
Independent Non-Executive Director6.17yrsUS$218.00kno data

7.1yrs

Average Tenure

60.5yo

Average Age

Experienced Board: SEPL's board of directors are considered experienced (7.1 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 been diluted in the past year, with total shares outstanding growing by 2.5%.


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£326.626m
  • Shares outstanding: 583.26m
  • Website: https://seplatpetroleum.com

Number of Employees


Location

  • Seplat Petroleum Development Company Plc
  • 16A Temple Road
  • Olu Holloway
  • 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, operates in the oil and gas exploration and production, and gas processing activities in Nigeria. It operates a portfolio of assets in the Niger Delta region, incl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 20:40
End of Day Share Price2020/08/04 00:00
Earnings2020/06/30
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.