Upstream exploration and production company, Seplat Petroleum Development Company Plc, said on Tuesday the $0.05 final dividend for Full Year 2019 it was proposing for shareholders would be subjected to a 10% withholding tax.
“Shareholders are hereby advised that following the amendment of the finance laws in Nigeria – Finance Act, 2020, dividends paid out of after tax petroleum profits are now subject to With Holding Tax (WHT),” its note to the Nigerian Stock Exchange (NSE) read in part.
Seplat, which is dual-listed on both the NSE and the London Exchange (LSE), had last week announced that payment of the proposed dividend would be executed at 1 USD to N360.50 and 1 USD to 0.8086 Great Britain Pound (GBP).
The declaration of the dividend in March, followed the release of its 2019 financial results, which saw profit expand by 89.5% to N85.016 billion.
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However, the oil and gas firm reported a loss of $107 million in the first quarter of this year, citing provision for impairment, which came to $146 million.
The provision similarly depleted non-current assets from US$2.34 billion to US$2.20 billion.
Last December, Seplat took over Scotland-based Oil and Gas Plc in a deal worth $382 million, funded through a bridge facility refinancing.
Seplat opened trade on the floor of the NSE on Tuesday at N476.40 per share.