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1. Company Snapshot

1.a. Company Description

Seplat Energy Plc engages in the oil and gas exploration and production, and gas processing activities in Nigeria.It generates hydrocarbon through seven oil and gas blocks in the Niger Delta region.The company also engages in the renewable energy generation activities.


The company was formerly known as Seplat Petroleum Development Company Plc and changed its name to Seplat Energy Plc in May 2021.Seplat Energy Plc was incorporated in 2009 and is headquartered in Lagos, Nigeria.

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1.b. Last Insights on SEPL

Seplat Energy Plc's recent performance has been positively driven by upgraded revenue forecasts, with industry analysts revising their estimates upward by 30%. The company's latest earnings release demonstrated a beat, leading to increased forecasts from analysts. A focus on dividend stocks has been evident, with Seplat Energy Plc being considered for its potential to offer a reliable income stream. The UK market's challenges, including weak trade data from China, have highlighted the appeal of dividend stocks. Seplat Energy Plc's strong financials and strategic positioning have drawn attention from investors seeking growth potential.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.15%)

6. Segments

Oil

Expected Growth: 1.2%

Seplat Energy Plc's 1.2% growth in oil production is driven by increased operational efficiency, successful drilling campaigns, and strategic partnerships. Additionally, the company's focus on cost optimization, improved oil prices, and growing demand for energy in Nigeria also contribute to this growth.

Gas

Expected Growth: 0.8%

Seplat Energy Plc's 0.8 growth in gas segment is driven by increased production from its Ohaji South and Sapele fields, improved gas processing infrastructure, and strong demand from the Nigerian domestic market. Additionally, the company's focus on cost optimization and operational efficiency has also contributed to the growth.

7. Detailed Products

Crude Oil

Seplat Energy Plc is a leading independent oil and gas company in Nigeria, and crude oil is one of its primary products. The company explores, produces, and sells crude oil to refineries and other customers.

Natural Gas

Seplat Energy Plc is also a significant producer of natural gas, which is used to generate electricity, power industrial processes, and fuel transportation.

Liquefied Petroleum Gas (LPG)

Seplat Energy Plc produces LPG, a clean-burning fuel used for cooking, heating, and powering vehicles.

Gas Supply

Seplat Energy Plc supplies natural gas to power plants, industrial customers, and other users.

Well Intervention Services

Seplat Energy Plc provides well intervention services to optimize well performance and enhance oil and gas production.

Drilling and Completion Services

Seplat Energy Plc offers drilling and completion services to support oil and gas exploration and production operations.

8. Seplat Energy Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

Seplat Energy Plc operates in the oil and gas industry, which has few substitutes. However, the increasing focus on renewable energy sources poses a moderate threat to the company.

Bargaining Power Of Customers

Seplat Energy Plc's customers are mainly oil and gas companies, which have limited bargaining power due to the company's strong market position and limited alternatives.

Bargaining Power Of Suppliers

Seplat Energy Plc relies on a few suppliers for its operations, giving them some bargaining power. However, the company's strong financial position and diversified supply chain mitigate this risk.

Threat Of New Entrants

The oil and gas industry has high barriers to entry, including significant capital requirements and regulatory hurdles, making it difficult for new entrants to compete with Seplat Energy Plc.

Intensity Of Rivalry

The oil and gas industry is highly competitive, with many established players competing for market share. Seplat Energy Plc faces intense rivalry from other companies operating in the Nigerian energy market.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.97%
Debt Cost 6.19%
Equity Weight 70.03%
Equity Cost 6.19%
WACC 6.19%
Leverage 42.80%

11. Quality Control: Seplat Energy Plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
TotalEnergies EP Gabon

A-Score: 6.8/10

Value: 7.8

Growth: 2.8

Quality: 8.0

Yield: 10.0

Momentum: 6.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Ithaca Energy

A-Score: 6.7/10

Value: 8.0

Growth: 5.9

Quality: 4.6

Yield: 10.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Stock-Card
Serica Energy

A-Score: 6.1/10

Value: 5.7

Growth: 5.3

Quality: 6.0

Yield: 9.4

Momentum: 9.5

Volatility: 1.0

1-Year Total Return ->

Stock-Card
Maurel & Prom

A-Score: 6.0/10

Value: 7.3

Growth: 6.0

Quality: 8.0

Yield: 8.8

Momentum: 3.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
DNO

A-Score: 5.4/10

Value: 8.2

Growth: 2.9

Quality: 2.1

Yield: 9.4

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

Stock-Card
Seplat Energy

A-Score: 5.4/10

Value: 7.6

Growth: 4.0

Quality: 5.3

Yield: 8.1

Momentum: 4.5

Volatility: 3.0

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.5$

Current Price

2.5$

Potential

-0.00%

Expected Cash-Flows