Seplat declares Naira dividends with an exchange rate of N996.75/$

Infostride News reports that following the declaration of an interim dividend of 3 US Cents per ordinary share of N0.50 per share, Seplat, a prominent Nigerian company, is set to utilize an exchange rate of N996.75/US$ to determine the Naira amount payable to its shareholders.

In practical terms, this means that Seplat will be disbursing an interim dividend of N29.9 per ordinary share of N0.50 to its Nigerian shareholders. The specifics of this announcement were outlined in a corporate filing signed by Seplat’s Chief Financial Officer, Emeka Onwuka. The calculation of Naira amounts payable was anchored on the exchange rate for the US dollar as of November 9, 2023.

It is crucial to note that shareholders on the Nigerian Exchange Limited who lack a valid Nigerian Certificate for Capital Importation (“CCI”) will automatically receive dividends in Naira. On the other hand, shareholders with a valid CCI will default to being paid in US dollars, the default currency.

For shareholders opting for US dollars, the process requires them to furnish evidence of the CCI to Datamax Registrars Limited. Alternatively, shareholders must be holding their shares through depository interests on the London Stock Exchange.

As investors consider their dividend preferences, the context of Seplat’s financial performance comes into play. For the nine-month period concluding in September 2023, Seplat reported a pre-tax profit of N62.85 billion. This figure signifies an 18.9% year-on-year decline from the same period in 2022.

This notable drop in pre-tax profit is primarily attributed to significant foreign exchange losses incurred by the group within the reporting period, stemming from the devaluation of the Naira. The volatility in the currency market has evidently impacted Seplat’s financials, underscoring the challenges companies face in navigating economic fluctuations.

The decision to offer dividends in both Naira and US dollars reflects Seplat’s acknowledgment of the diverse shareholder base and the necessity to accommodate varying preferences. The company’s approach aligns with broader trends in the Nigerian financial landscape, where businesses are adapting their strategies to address the evolving needs and preferences of shareholders.

As Seplat navigates the complexities of the foreign exchange landscape and strives to optimize shareholder value, Infostride News remains committed to providing comprehensive coverage of developments shaping the financial sector in Nigeria and beyond. Stay tuned for further insights into the dynamics influencing corporate decisions and market trends.