Seplat Energy grows revenue 36.9% to N152bn in Q1 2023
By Onome Amuge
Seplat Energy Plc recorded a strong financial performance across its major operation indices, driven by a higher production volume, as its unaudited results for the three months ended 31 March 2023 showed a significant advancement in its Q1 revenue which rose from N100.6 billion to N152 billion, representing 36.9 per cent year-on-year growth.
The leading Nigerian independent energy company also reported that its core annual dividend target has been raised by 20 per cent to 12 cents; declaring a Q1 dividend payout of three cents per share.
Seplat, listed on both the Nigerian Exchange Limited and the London Stock Exchange also grew its profit before tax 3.2 per cent year-on-year from N34.7 billion in Q1 2022 to to N39.5 billion in Q1 2023. This,the company said, was driven by higher production volumes, while its gross profit for the period surged to N91.1 billion from N48.8 billion year-on-year, rising by 69 per cent.
Seplat Energy also recorded a strong Q1 cash generation of $139.9 million and capex of $44.7 million; with a 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 notable financial highlights showed that revenues were up 37 per cent to $331.0 million, including an overlift of $75.4 million, driven by higher production volumes. In addition, the company recorded unit production opex of $9.0/barrels of oil equivalent (boe), average realised oil price of $82.32/barrel, while average realised gas price climbed to $2.88/thousand standard cubic feet (Mscf), following price renegotiation with clients leading to upward price adjustments.
Concerning its operations, the leading energy supplier said its working interest production increased by 8.6 per cent to 51,720 barrels of oil equivalent per day (boepd), in the upper half of the guidance range for the period. It further disclosed that the Amukpe-Escravos Pipeline (AEP) is supporting higher export volumes from key Western Assets, while the new OP-15 well is boosting liquids production at OML 40, with Oben-34 well boosting gas production.
The Company also disclosed that it achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets in the reviewed period. Meanwhile, full-year guidance is retained at 45-55 kboepd, and carbon intensity figure stands at 26.4kg/boe.
Seplat, in its corporate updates, noted that applications were submitted for conversion of Oil Mining Leases under the new Petroleum Industry Act (PIA) regime.
The company also noted that it announced its board of directors’ succession forward plan on 25 April 2023.
On its proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU), Seplat said it remains confident that the proposed acquisition will be brought to a successful conclusion as it continues to engage with all relevant parties.
Commenting on the company’s impressive results, Basil Omiyi, independent chairman, remarked that Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the board to increase its annual core dividend target from 10 cents to 12 cents per share, paid in equal quarterly dividends.
“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil. On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome,” he said.
Omiyi also appreciated the staff for remaining focused on delivering the 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,” he concluded.