Seplat Energy soars 20% in October amid share acquisition, ExxonMobild deal

Seplat Energy‘s stock has experienced a sharp rally, gaining over 20% in the first week of October, driven by renewed market momentum following a sluggish performance in July and August.

The bullish trend began to emerge at the end of September after a key share acquisition by Tierce Investments Ltd., a firm fully owned by Seplat’s non-executive chairman, Udo Udoma.

On September 27, 2024, Seplat disclosed that Tierce Investments had acquired 22,571 ordinary shares in the company, which provided a brief period of stability for the stock before it surged dramatically on October 3rd and 4th.

Trading volume during the first week of October skyrocketed to 818,000 shares, contributing to the more than 20% increase in the stock’s value.

Seplat’s stock has been on a long-term upward trend since 2023, achieving significant milestones in 2024. In January, the stock broke through the N3,000 mark, driven by strong trading volumes exceeding 2 million shares, resulting in a 33% gain to close the month at N3,074 per share.

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The momentum continued in February, as the stock surpassed N3,300, though it faced a brief lull in March and April.

By May, Seplat regained strength, fueled by increased trading volumes of 2.6 million shares, which propelled the stock’s upward trajectory through June.

After stagnating in July and August, Seplat saw a resurgence at the end of September, breaking the N4,000 mark and rising by 30% through early October.

A key driver of investor confidence came from Seplat’s impressive financial results for Q2 2024. The company reported a staggering 3,480% year-on-year surge in pre-tax profit, coupled with a revenue of N306.4 billion, representing a 142.5% increase compared to N126.3 billion in Q2 2023.

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The announcement of an interim dividend of US3 cents per ordinary share on July 30, 2024, further bolstered market sentiment.

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Adding to the optimism, President Bola Tinubu announced that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) had approved ExxonMobil’s $1.28 billion divestment of its onshore assets to Seplat.

This significant acquisition is expected to expand Seplat’s operational capacity and market influence in Nigeria’s oil and gas sector.

President Tinubu affirmed that the deal, which follows the Petroleum Industry Act’s guidelines, will soon receive full ministerial approval.

These events have generated a wave of positive sentiment, boosting Seplat’s stock by over 30% between late September and early October, solidifying its position as a key player in Nigeria’s energy sector.

Seplat’s upward trajectory is expected to continue as the market responds to its financial growth, strategic acquisitions, and strengthened investor confidence.