Seplat Energy Grows Q1 Pre-tax Profit By 3.2% To N39.5bn

BY NSE ANTHONY-UKO, Abuja

Seplat Energy Plc, has announced its unaudited results for the three months ended 31 March 2023, recording a rise in profit before tax by 3.2 per cent to N39.5 billon from N34.7 billion year-on-year. 

A leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, Seplat Energy also reported that its core annual dividend target has been raised by 20 per cent to US 12 cents; declaring a Q1 dividend payout of US 3 cents per share.

The energy company’s also grew its Q1 revenue by 36.9 per cent to N152 billion from N100.6 billion year-on-year, driven by higher production volumes; as its gross profit for the period soars to N91.1 billion from N48.8 billion year-on-year, rising by 69 per cent.

Seplat Energy recorded a strong Q1 cash generation of $139.9 million and capex of $44.7 million; with Balance Sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million excluding $130 million MPNU cash deposit.

In its operations, Seplat Energy said it’s working interest production increased by 8.6 per cent to 51,720 boepd, in upper half of guidance range for the period, with the Amukpe-Escravos Pipeline (AEP)  supporting higher export volumes from key Western Assets. 

It said the new OP-15 well is boosting liquids production at OML 40, with Oben-34 well boosting gas production.

The company also said it achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1. Full-year guidance is retained at 45-55 kboepd, and Carbon intensity figure stands at 26.4kg/boe.

Giving highlights of its financial performance, Seplat Energy said that revenues rose 37 per cent to $331.0 million (including overlift of $75.4 million), driven by higher production volumes, with strong cash generation of $139.9 million, and capital expenditure (capex) of $44.7 million.

The firm said it’s balance sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included).

Other highlights include, unit production opex of $9.0/boe; average realised oil price of $82.32/bbl; average realised gas price climbed to $2.88/Mscf following price renegotiation with clients leading to upward price adjustments.

On operational highlights, the company said working interest production increased by 8.6 per cent to 51,720 boepd, in upper half of guidance range; Amukpe-Escravos Pipeline (AEP) supporting higher export volumes from key Western Assets; New OP-15 well boosting liquids production at OML 40, with Oben-34 well boosting gas production; Achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets;  Full-year guidance retained at 45-55 kboepd while Carbon intensity figure of 26.4kg/boe.

On Corporate updates, it said core annual dividend target raised by 20 per cent to US 12 cents; Q1 dividend declared of US 3 cents per share.

The company said it also submitted applications  for conversion of Oil Mining Leases under the new PIA regime.

The Company announced its Board of Directors’ Succession Forward Plan on 25 April 2023.

Giving an update on the proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU) the company said engagements where ongoing with relevant parties and was confident of a successful outcome.

“We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.”

“I wish to thank all our staff for remaining focused on delivering this strong performance, united in their support of Seplat’s management team, against a backdrop of unnecessary distractions that will not derail our progress and ambition to become Nigeria’s leading energy supplier.

“The Board announced its Succession Forward Plan earlier this month and I look forward to steering this national energy champion in my final year as Chairman, fully resolved to implement the strong corporate governance that will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”