Shareholders of Seplat Energy Plc have lauded the leading Nigerian independent energy company for putting in place a transition plan that guarantees the decarbonization of its operations and reduction of gas flaring in the country.
This will see it eliminating routine flaring by the end of 2024 through its Flares Out initiative, which is six years ahead of Nigerian regulatory requirements and the World Bank’s initiative to achieve Zero Routine Flaring by 2030.
Over the last 12 months, the company has been scaling up its Midstream Gas business to increase the amount of natural gas supplied towards powering Nigeria’s electricity grid thereby displacing diesel use in power generation, while its New Energy business has been tasked with developing power and renewable energy.
The shareholders spoke at the 10th annual general meeting (AGM) held virtually with regulators, company directors, and the media, amongst other stakeholders heard chairman of the board, Seplat Energy, Mr. Basil Omiyi disclosed that the board has approved a new Climate Change Policy and has advanced a major component of its decarbonisation strategy.
“These steps form part of a transition plan that will align our business strategy with the overarching goal of the Paris Agreement to limit mean global temperature rise to well below 2°C and contribute to supporting Nigeria’s pathway to achieving carbon neutrality by 2060.
“This plan is subject to evaluation, approval and oversight of our Board and Management teams and is underpinned by actionable, specific initiatives for decarbonising our operations and increasing the overall sustainability of our business model,” Omiyi said.
Mr. Matthew Akinlade, President, Noble Shareholders Solidarity Association, said: “I wish to commend the Board and management for a good performance, in spite of the challenges of year 2022, you were able to raise revenue by about 38 per cent and cost of sales at just 18 per cent, which shows an effective management of the company’s cost.”
Also, a shareholder, Mr. Patrick Ajudua, said: “I want to commend the company for the special dividend of 5 cents, in addition to the final dividend of 2.5 cents, bringing the total to 15 cents. We are, indeed, very grateful and we appreciate the Board for being consistent in dividend payment and ensuring a generous reward to the shareholders at a very difficult time, when most companies are even finding it difficult to maintain profitability.”
Speaking at the meeting, the acting CEO, Seplat Energy, Mr. Samson Ezugworie, said: “As part of Seplat Energy’s drive to become a leading supplier of lower carbon and renewable energy, we are exploring ways to expand into these new and exciting markets.
“The first and most obvious option is to provide more gas for Nigeria’s power sector, to reduce the country’s reliance on imported diesel fuel, which is highly carbon intensive and a drain on the nation’s wealth. We will also look at hybrid systems where we install solar or other renewable technology alongside gas, which will provide baseload power at all times,” he added.
Seplat Energy Plc is listed on both the Nigerian Exchange Limited (NGX) and the London Stock Exchange (LSE). In its 2022 full year financials the company’s total revenue rose by 29.8 per cent to $951.8m while profit before tax rose by 15.3 per cent to $204.4m.
