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Seplat Energy grows profit by 83% to N81.33bn



Seplat Energy grows profit by 83% to N81.33bn

Seplat Energy Plc has recorded 83 per cent growth in profit to N81.33bn for the financial year 2023.

Seplat, listed on both the Nigerian Exchange and the London Stock Exchange, disclosed in its audited results for the twelve months ended 31 December 2023, that annual profit rose to N81.33bn from N44.433bn in the comparable period in 2022.

The Chief Financial Officer, Seplat Energy Plc, Emeka Onwuka in a regulatory filing with the Nigerian Exchange Group on Thursday said the firm’s revenue in local currency, came in at about N697bn representing about a 73 per cent increase from N404bn recorded in the year 2022.

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In US dollar terms, the company’s profit attributable to equity holders for the 12 months ended Dec. 31, 2023, was $83.1m, compared with $62.4bn a year ago.

“Following a sterling performance, the board is recommending a final dividend of $0.03 per share and a special dividend of $0.03 for the period, payable to shareholders on record on April 26. It paid $0.025 and $0.05, respectively, a year ago”.

Further checks on Seplat’s scorecard showed that revenue grew by 12 per cent year on year to $1,061.3m from $951.8m in 2022. The average realised oil price was $83.39 per barrel (bbl), lower than $101.67/bbl achieved in 2022.

“Also, the average realised gas price settled at $2.90/Mscf, a decline from $2.82/Mscf in the comparable year. The company said unit production operating expenses rose marginally to $10.4/boe from $10.3/boe in 12 months”, Onwuka said.

The Chief Executive Officer, Seplat Energy Plc, Roger Brown said the company’s ability to deliver production growth, fortified balance sheet and reward shareholders despite facing some unexpected challenges during the year.

“Operational performance was strong, production increased 8% 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’m pleased to report strong 2P reserves growth, up 9% on prior year estimates.

“Our revenue exceeded $1bn, and while costs increased, our proactive approach meant we generated more than $260m of free cash flow in the year, allowing us to continue rewarding our shareholders and further reduce net debt”.

On outlook, Mr Brown said 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”.

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