Seplat Energy’s H1 2021 profit before deferred tax grows 142.7% to $62.1m

Seplat Energy Plc (formerly Seplat Petroleum Development Company) has released its half year (H1 2021) scorecard with profit before deferred tax (PBT) of $62.1 million, representing an increase of 142.7 percent against H1 2020.

Highlights of the company’s financials further show that revenue went up 32 percent to $308.8 million in H1 2021, from $233.5 million in H1 2020; earnings before interest, taxes, depreciation, and amortization (EBITDA) of $178.9 million; cash generated from operations ($125.8 million); cash at bank ($298.8 million) and net debt of $456.4 million.

The oil company listed on the Nigerian Exchange Group (NGX) and London Stock Exchange (LSE) announced an interim dividend of US2.5 cents per ordinary share, subject to appropriate withholding tax (WHT) to be paid to its shareholders whose names appear in the register of members as at the close of business on August 12, 2021.

Both the NGX Limited and LSE hosted Seplat on Thursday July 29 to commemorate its first dual capital markets day. The event marked an important milestone for the energy firm, marking its name change from Seplat Petroleum Development Company Plc to Seplat Energy Plc.

With the company’s total rebranding underway, the leading Nigerian independent energy company announced its unaudited results for the half year (H1) ended June 30, 2021.

The operational highlights show: working-interest oil and gas production within guidance at 50,786 barrels of oil equivalent per day (boepd); liquids production of 30,028 barrels of oil per day (bopd) in H1 2021, gas production up 21 percent to 120 million standard cubic feet per day (MMscfd); Oben-50 and 51 gas wells completed in the period and producing; safety record extended to more than 20.5 million man hours without LTI on Seplat-operated western assets; while first liftings from Amukpe-Escravos Pipeline is expected in fourth-quarter (Q4) 2021.

Seplat successfully issued $650 million 7.75% senior notes to redeem existing $350 million 9.25% senior notes and repay $250 million drawn on $350 million revolving credit facility (RCF); refinanced $100 million Westport RBL facility; raised a $50 million offtake linked to the RBL in July; and total capital expenditure of $57.5 million.

To enable its registrar, DataMax Registrars Limited prepare for the payment of the interim dividend, the register of shareholders will be closed on August 13, 2021. The qualification date is at the close of business on August 12, 2021. Note that on the London Stock Exchange: the associated record date will be August 12, 2021 and the ex-dividend date will be August 11, 2021.

Seplat said, in the corporate action announcement that the exchange rate for the Naira or Pounds Sterling amounts payable to shareholders will be determined by reference to the relevant exchange rates applicable to the US dollar on August 11and will be communicated by the Company on August 12.

On or around September 13, this year, the interim dividend will be paid electronically to shareholders whose names appear on the register of members as at August 12, and who have completed the e-dividend registration and mandated the Registrar to pay their interim dividend directly into their bank accounts.

Shareholders holding their shares on the Nigerian Exchange Limited without a valid Nigerian certificate for capital importation (CCI) will be paid their dividend in Naira as the default currency. Shareholders holding their shares on the Nigerian Exchange Limited with a valid CCI will be paid their dividend in US dollars as the default currency. The company added that those shareholders may instead elect to receive their entire dividend payment in Naira (partial elections are not permissible).

“Evidence of the CCI must be provided to Datamax Registrars Limited; and shareholders holding their shares through depository interests on the London Stock Exchange will be paid their dividend in US dollars as the default currency. However, those shareholders may instead elect to receive their entire dividend payment in pounds sterling. Partial elections are not permissible,” the energy company said in a notice signed by Emeka Onwuka chief financial officer (CFO).

The CFO said shareholders who have a dividend currency option must make the election to the company’s registrars by August 27, 2021, else the dividend will be paid in the default currency, with the election form sent out to the relevant shareholders, and can also be found on the company’s website. The shareholders holding their shares on the Nigerian Exchange Limited with a valid CCI are expected to notify Seplat’s Nigerian registrars, DataMax of that fact, the company further said.