Niger Delta E&P pledges enhanced dividend payment to investors

By Nkiruka Nnorom 

Niger Delta Exploration & Production (NDE&P) Plc listed on NASD OTC Plc, an over-the-counter securities exchange, has assured its shareholders of enhanced dividend payment in the coming years, even as it has revealed plans to raise $400 million from the domestic capital market. Speaking at NASD OTC Market analysts forum and conference call in Lagos, the Managing Director/CEO, Dr. Layi Fatona, said the company has consistently paid dividend in the last eight years, in addition to enjoying 10 years of uninterrupted oil and gas production in the country. He said: “For our shareholders, there has been substantial value add. We have successfully and consistently paid dividend in the last eight years and for those of our shareholders who actually know us, I think waiting for our dividend is an annual ritual at our Annual General Meetings (AGMs). “So when you put all these characteristics of the company; producing oil, producing gas, processing oil and processing gas, I think we truly qualify to be described as a fully integrated Nigerian independent oil and gas company.” On the fresh capital raise, he stated that the company has commenced raising $100 million, while raising of the remaining $300 million would start on conclusion of the first phase in the next couple of weeks. According to him, the fund raising exercise would enable the company to reposition by increasing its refining capacity from 1,000 barrels per day to 5,000 barrels per day. It would also enable it to acquire new assets and capitalize on its gas producing ability. “As Oil Company, our appetite for money is voracious, and three years ago, we ended up in N600 million transactions, buying 45 per cent divested interest of Shell, Total and Agip from one of the oil and gas producing assets, west of the Niger Delta. So, few years ago, we decided that for us to continue this kind of investment, we need very significant wallet, and we decided that with the authorization of our shareholders, we will raise some $400 million dollars,” Fatona explained. Laying the company’s 2015 results before the analysts, Mr. Deji West, Group Chief Operating Officer, NDE&P Plc, explained that the company had a tough year in 2015, but noted that measures are being put in place to cushion the losses in current financial year. Speaking at the event, Mr. Bola Ajomale, Managing Director, NASD OTC Plc, said the markets analyst forum is in line with the Exchange’s tradition of promoting a transparent market. He noted that NDE&P has been trading on its platform for the two years.

Read more at: http://www.vanguardngr.com/2016/03/niger-delta-ep-pledges-enhanced-dividend-payment-to-investors/

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