Seplat, Okomu Oil Hold AGMs Today in Lagos

Okomu Oil Palm Company

By Dipo Olowookere

Shareholders of Seplat Petroleum Development Company Plc and Okomu Oil Palm Company Plc will gather in Lagos today.

The reason for the gathering of these shareholders is mainly for the Annual General Meetings (AGMs) of their respective organisations.

While investors of Seplat will gather on 16a Temple Road (Olu Holloway), Ikoyi, Lagos by 11am, those of Okomu Oil will converge on Harbour Event Centre, 4 Wilmot Road, Victoria Island, Lagos at 10am.

At their respective meetings, shareholders will vote on the dividend recommended by their boards and would expect to start receiving the cash rewards afterwards.

Business Post reports that the board of Seplat has proposed to pay shareholders a dividend of $0.05 per unit, while the board of Okomu Oil has recommended N2 for the 2019 financial year.

In the 2019 fiscal year, Seplat recorded a 6.2 percent decline in the revenue generated, N214.2 billion, compared with N228.4 billion achieved in 2018 FY.

The revenue shortfall was majorly impacted by lower production and oil price as Brent oil price averaged $64.04/bbl over 2019 (2018: $71/bbl). The average premium to Brent achieved by the Group in 2019 was $0.36/bb.

The firm said the cost of sales reduced to N92.7 billion from N108.5 billion, while the gross profit rose to N121.5 billion from N119.8 billion due to higher gas processing revenues and lower non-production costs primarily consisting of royalties and DD&A.

The DD&A charge for oil and gas assets decreased in the period under review, reflecting lower depletion of reserves because of decreased production compared to the prior year.

Its general and administrative expenses was trimmed to N21.7 billion from N24.4 billion, while operating profit increased to N95.8 billion from N94.9 billion, mainly because of the gas-tolling revenue recognised but set against the reversal of previously recognised accrued interest on NPDC receivables due to the settlement of these receivables.

In the reporting year, its profit before tax increased to N89.9 billion from N80.6 billion, while the profit after tax significantly jumped to N85.0 billion from N44.9 billion.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

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