Seplat pays $2.8bn in taxes, royalties in 13 years – Adalegbe

Seplat Energy’s Chief Financial Officer-Designate, Eleanor Adaralegbe, says the indigenous oil company has made a total of $2.8bn in taxes and royalties to the federal government over the past 13 years.

Speaking at a press briefing marking the oil company’s 10-year anniversary of dual listing at the Nigerian Stock Group (NXG) and the London Stock Exchange (LSE) in Lagos penultimate Thursday, Adaralegbe disclosed that the money include $1.54 billion paid in royalties; $329m of petroleum profits tax, and $273 million on value added tax (VAT).

According to Adaralegbe, others are $259m of withholding tax, $126 million of Pay As You Earn (PAYE), and $276 million to the Niger Delta Development Commission (NDDC), among others.

She also disclosed that Seplat Energy has returned $575 million to shareholders, meaning that shareholders gained additional $75 million as return on their investment.

“With $575 million paid as dividends since our IPO in 2014, we have successfully returned all the capital we raised at IPO,” she noted.

“Dividend has been paid in nine out of the past 10 years,” she said, stressing that the main reason for reduced dividend in 2016/17 was the unavailability of infrastructure, particularly the Forcados, which went offline for 16 months.

Roger Brown, Chief Executive Officer, Seplat Energy, explained that Seplat Energy has made significant progress post-IPO, acquiring eight onshore blocks in the Niger Delta and generating an average annual FCF of $264m.

“Our success story is driven by operational excellence, strong partnerships and credibility in international capital markets,” Brown told journalists.

At a point when firms evade and avoid taxes, Seplat Energy has made enormous contributions to the growth of the Nigerian economy.

The Seplat Energy portfolio now comprises eight oil blocks – direct interests in seven blocks in the Niger Delta area, four of which Seplat operates and one further of revenue interest. The company also established a robust Global Memorandum of Understanding with the local communities in the Niger Delta, setting out rules of engagement and mutual beneficiation.

The major effect of these acquisitions has been to position the company as the leading partner for Nigerian domestic gas supply for the power sector and a significant contributor to the crude supply to the export markets.