Cynthia Ezekwe
Independent energy company Seplat Energy PLC, which is listed on both the Nigerian Exchange and the London Stock Exchange, has announced a significant improvement in its financial performance, with a profit before tax (PBT) of N244 billion reported for the first half of 2024, representing a 5.5x surge against the N43.5 billion recorded during the same period in 2023.
Seplat Energy’s unaudited financial results for the six months ended 30 June 2024 showed a 278.3 percent increase in the company’s revenue at N575.1 billion compared to N106.65 billion recorded in the first half of 2023.
The company’s financial report for the first half of 2024 revealed that while its revenue showed an upward trend, cash generated from operations saw a decline, falling to $226.0 million from the $260.0 million recorded in the corresponding period of the previous year. However, there was a glimmer of hope as the company’s cash generated from operations in the second quarter of 2024 rose to $209.2 million, a significant recovery from the $16.8 million recorded in the first quarter of 2024.
According to Seplat Energy, its average realised oil price for the first half of 2024 rose to $85.55 per barrel from $79.54 per barrel in the corresponding period of 2023. Similarly, the company’s average realised gas price climbed to $2.95 per Mscf from $2.87 per Mscf in the first half of 2023.
The financials for the first half of 2024 also showcased a further strengthening of the company’s debt position, with net debt falling to $366 million from $385 million at the end of the first quarter of 2024. This improvement was fueled by the company’s successful repayment of $19.3 million of Reserve-Based Lending (RBL) borrowings in the first six months of 2024.
Commenting on the company’s financial performance, Roger Brown, chief executive officer, Seplat Energy, said: “Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company. Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.”
Brown commended government partners for their efforts in pushing critical pipeline infrastructure to completion in recent weeks. He added that the company was eagerly anticipating first gas on the Sapele gas plant in the second half of 2024, a milestone that is set to unlock further growth potential. In addition, the CEO noted that the company was undertaking debottlenecking activities at Oben, a strategic move that is aimed at enhancing gas production.
Brown provided additional insights into the company’s progress, stating that the early results from Sibiri had exceeded expectations, setting a promising tone for future operations in that area. He also revealed that production at Abiala was set to commence in the coming weeks, a development that would add to the company’s already robust operations.
“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion,” he added.
