Seplat Energy shareholders laud $951.8m 2022 FY revenue, approve 15cents per share dividend

By Business A.M. 

Shareholders of Seplat Energy Plc have commended the staff and management of the company over its impressive performance for the 2022 Financial year, which saw the leading Nigerian independent energy company record a  29.8 per cent year-on-year rise in  total revenue  to $951.8 million. They also approved  the total dividend  payout of US 15 cents per share presented by the company.

The shareholders spoke at the company’s  10th Annual General Meeting (AGM), where shareholders, regulators, company directors, and the media, amongst other stakeholders, joined virtually.

In his address to shareholders and other stakeholders during the AGM, Basil Omiyi, the chairman of board, Seplat Energy, said for the 2022 full year, the  energy firm posted an increase in profit before tax which was up by 15.3 per cent to $204.4 million.

Driven by the healthy financial performance and solid cash position, the Seplat Energy board recommended a special dividend of US5 cents per share to be paid to shareholders, in addition to the final quarterly dividend of US 2.5 cents per share.

This brings the total dividend for the year to US 15 cents per share, which will be made on or around 16 May 2023 to shareholders whose names appear in the company’s register at the close of business on 18 April 2023.

Omiyi said the company’s oil business started the year on a strong footing, with working interest production of 29,078 barrels of oil per day (bopd) and 30,338bopd in Q1-2022 and Q2-2022 respectively.

He, however, noted that in the third quarter, production was impacted negatively by evacuation problems at the Forcados Oil Terminal (FOT), not being available for a period.

“Thankfully, the much-delayed launch of the Amukpe-Escravos Pipeline (AEP) provided some relief as we were able to flow c.10,100bopd (working interest production) during the period. The AEP is now a major export route for our largest assets at OMLs 4, 38 and 41. As a result, our reliance on the Trans Forcados Pipeline and FOT is significantly lower, reducing risks of downtime while providing a solid base for stronger export volumes and revenues,” Omiyi added.

According to the Seplat Energy chairman, the company’s gas business remained strong through the year, as good progress was made with the construction of the ANOH Gas Processing Plant, which now awaits the completion of third-party infrastructure before it can commence operations, projected for the final quarter of 2023.

“The positive impact of renegotiated Gas Sales Agreements (GSAs) in H2-2022 provided healthy support for revenue growth and profitability and we continue to focus on increasing capacity utilisation at our Oben Gas Processing Plant,” he added.

Over the past 12 months, Omiyi said the company had taken significant steps towards fulfilling its new purpose and vision with regards to energy transition, and was 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 the Company’s New Energy business has been tasked with developing power and renewable energy.

Reacting to the Seplat Energy chairman’s comment, Patrick Ajudua, a shareholder,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.”

Matthew Akinlade, president, Noble Shareholders Solidarity Association, also commended the board and management for a good performance, in spite of the challenges of year 2022, noting that  Seplat was 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.

Samson Ezugworie, the chief operating officer, Seplat Energy, said the company, as part of its drive to become a leading supplier of lower[1]carbon and renewable energy,is exploring ways to expand into these new and exciting markets.

Ezugworie stressed that 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.