Seplat Energy Plc has declared a growth of 45 per cent to N125.5 billion profit before tax in its audited result for the full year ended December 31, 2023.
The Nigerian independent energy company listed on the Nigerian Exchange Limited (NGX) and London Stock Exchange (LSE) posted N81.33 billion profit after tax in 2023, representing an increase of 83 per cent from N44.43 billion in 2022.
This is as the company appointed Udoma Udo Udoma as its new independent non-executive chairman to succeed Basil Omiyi who will retire on March 31, 2024. Also, Seplat Energy appointed Bello Rabiu as the new senior independent non-executive director effective April 1, 2024, to succeed Dr. Charles Oke.
Amid growth in profit, the board recommended a special dividend of US3 cents per share, in addition to the Q4 2023 declared dividend of US3 cents per share. Core dividend declared for 2023 is US 12 cents per share, up 20 per cent on 2022. Therefore, the total dividend declared is US15 cents per share.
The energy company also reported a gross profit rise of 14.5 per cent from N197.2 billion to N349.3 billion, and achieved more than 8.7 million hours without Lost Time Injury (LTI) on Seplat-operated assets in 2023.
Seplat Energy’s 2024 production guidance is put at 44-52 kboepd. Speaking on the results, chief executive officer, Seplat Energy, Roger Brown said, “Seplat Energy’s 2023 results illustrate the Company’s ability to deliver production growth, fortify our balance sheet and reward shareholders despite facing some unexpected challenges during the year.
“Operational performance was strong, production increased eight per cent over 2022 and we recorded the lowest level of reconciliation losses seen in recent years, a testament to the improving security efforts on the Niger Delta. Drilling yielded positive results, and I am pleased to report strong 2P reserves growth, up nine per cent on prior year estimates.
“Our revenue exceeded $1 billion, and while costs increased, our proactive approach meant we generated more than $260 million of free cash flow in the year, allowing us to continue rewarding our shareholders and further reduce net debt.”
She added that, “in 2024, we look forward to a number of key growth events. We are moving forward on both the Sibiri and Abiala developments on OML40. Clear progress is also being made on the important ANOH gas project, with first gas expected in 3Q 2024. Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year.”
On the appointment, the outgoing chairman of Seplat Energy, Basil Omiyi said, “Seplat Energy’s commitment to strong corporate governance remains unwavering and is demonstrated by the recent appointment of Udoma and Rabiu as the new chairman and SINED respectively.”
Mr. Udoma is an accomplished lawyer and seasoned board administrator. He attended St. Catherine’s College, Oxford, England where he obtained a B.A. (Law) degree and a B.C.L. degree in jurisprudence. He was admitted to the Nigerian Bar in 1978. He founded the Law Firm Udo-Udoma & Belo Osagie in 1983 and retired from active legal practice in early 2020. Whilst in practice, Udoma specialised in advising on Nigerian investment laws and the investment environment, particularly in the petroleum, energy, and natural resources sectors. He advised Nigerian and international companies on company law, corporate restructuring, mergers and acquisitions and the raising of financing in the capital and money markets, as well as on major construction and engineering contracts.
Udoma has served on a number of large sized company boards. He was Chairman of UAC Nigeria Plc and Union Bank Plc and served on the boards of companies such as Unilever Nigeria Plc., Linkage Assurance Plc and First Hydrocarbon Nigeria Limited. He has also held a number of public sector appointments. He was the first Chairman of the Corporate Affairs Commission (CAC) and has also served as the Chairman of the Nigerian Securities & Exchange Commission (SEC). He was the special adviser to the minister of Petroleum and Natural Resources from September 1993 to March 1994 and served as minister of Budget & National Planning from 2015 to 2019. He was elected to the Nigerian Senate in 1999 and served for two terms from 1999 to 2007. Mr. Udoma is currently the pro-chancellor of Akwa Ibom State University, Ikot Akpaden, Akwa Ibom state,
On his part, Mr. Bello Rabiu holds a Bachelor’s and Master’s Degrees in Mathematical Statistics from Ahmadu Bello University Zaria, Nigeria and another Master’s Degree in Petroleum Engineering from The Imperial College, London, United Kingdom. He attended many career advancements courses in Nigeria and abroad including the prestigious Wharton Executive Development Program from the University of Pennsylvania in Philadelphia, USA and Leading Global Business Program from Harvard Business School, Boston, USA.
Before his new role as the founder and chief executive officer of Dankiri Farms and Commodities Limited, Mr. Rabiu retired from the services of Nigerian National Petroleum Corporation (NNPC) in July 2019 after 28 years of service. He retired from NNPC as the chief operating officer/group executive director (COO/GED), Upstream Business Unit.
Prior to his appointment as COO/GED Upstream, NNPC. Rabiu held dual positions of group general manager, Corporate Planning & Strategy Division and senior technical assistant to group managing director, NNPC. He was also the general manager, Competitive Analysis Department of the same Division from September 2010 till August 11th, 2015. He was at various times between 1991 and 2005 a planning officer and Pioneer Head, Material Management, Frontier Exploration Services at the National Petroleum Investment Management Services (NAPIMS) Division of NNPC.
As COO/GED Upstream of NNPC, Rabiu oversaw the activities of the Corporation’s Upstream businesses, including; National Petroleum Investment Management Services (NAPIMS), National Engineering and Technical Company (NETCO), Nigerian Petroleum Development Company (NPDC), Integrated Data Services Limited (IDSL) and NNPC Oil Field Services (NOFS). He has a balanced knowledge of the Exploration & Production industry in Nigeria with unusual capability which combines commercial/fiscal knowledge with operations. This was particularly valuable in the development of the 2016 Nigerian Government approved upstream Joint Venture funding scheme which has restored the confidence of the International Oil Companies (IOCs) and Independent Partners in Nigeria’s Upstream Joint Venture resulting in increased national oil production of 2.3mbpd by 2019. He was responsible for the implementation of the 7 Critical Domestic Gas Development Projects (including AGPC), an offshoot of Nigerian Gas Master Plan aimed at using gas for Nigeria’s industrialization, economic growth, and development – where significant consideration had to be given to strategic intent, fiscal rules, and commerciality of supply.
Commenting on the appointments, Basil Omiyi, the Chairman of Seplat Energy, said:
“Seplat Energy’s commitment to strong corporate governance remains unwavering and is demonstrated by the recent appointment of Mr. Udoma Udo Udoma and Mr. Bello Rabiu as the new chairman and SINED respectively.
“We are confident that under their guidance, Seplat Energy will continue to expand and consolidate its position as Nigeria’s leading energy company and the partner of choice to deliver energy transition for Africa’s largest economy and its rapidly growing population.”
