Seplat Energy Declares $204.4m Pre-tax Profit In 2022

Seplat Energy Plc has reported a profit before tax of $204.4 million in its financial year ended December 2022.

This was contained in the company’s audited results released on the Nigerian Exchange Limited. Profit before tax grew by 15.2 per cent to $204.4 million from $177.3 million in 2021. The profit for the year was $104.7 million as against $117.2 million in 2021, with a resultant basic earnings per share of $0.11 in 2022, compared to $0.24 per share in 2021.

The board of the company recommended a final dividend of US2.5 cents per share for the financial year 2022 and following a review of Seplat’s operational, liquidity and financial position post refinancing the board has decided to declare an additional special dividend of US5.0 cents per share to be paid after approval at the annual general meeting (AGM) which will be held on May 10, 2023.

This brings the total dividend declared for 2022 to US15 cents per share higher than US10 cents per share in 2021. The payment of the special dividend reflects the board’s confidence in the future of the business and is underpinned by a strong balance sheet.

Further analysis revealed that revenue from oil and gas sales in 2022 was $951.8 million, a 29.8 per cent increase from the $733.2 million achieved in 2021. Gross profit increased by 63.0 per cent to $464.7 million compared to $285.2 million in 2021 and benefitted from higher realised oil prices.

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The operating profit for the period was $274.7 million, an increase of 9.6 per cent, compared to $250.7 million in 2021, while cash generated from operations in 2022 was $571.2 million, 51.6 per cent higher than $376.8 million generated in 2021.

The company recorded adjusted EBITDA of $416.9 million, up 12.1 per cent, a strong full year cash generation of $571.2 million against capex of $163.3 million and $140.3 million transaction deposits. Strong balance sheet with $404.3 million cash at bank, net debt of $365.9 million and a full year production cost of $10.3/boe.

Speaking on the performance, chief executive officer of Seplat Energy, Roger Brown said:  “I am delighted that our strong financial performance will enable the payment of a US7.5 cent final dividend, despite the significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents represents a dividend yield of around 11 per cent at the current LSE share price.”

He added that, “as we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year.

“Our gas business continues to develop, with first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.”