CORPORATE REPORT: Seplat Energy increases 2023 Q1 Profit before Tax by 3.2% to N39.5bn

– By Godswill Odiong

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By Eyo Nsima

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, has increased its unaudited results for the three months ended 31 March 2023, profit before tax by 3.2 per cent to N39.5 billion, from N34.7 billion year-on-year, YoY.

The company also increased its core annual dividend target by 20 per cent to US 12 cents; declaring a Q1 dividend payout of US 3 cents per share.

It grew Q1 revenue by 36.9 per cent to N152 billion, from N100.6 billion YoY, due mainly to higher production volumes; while raising its gross profit for the period to N91.1 billion, from N48.8bn 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 Balance Sheet strengthened with $459.7 million cash at the bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included).

The company, disclosed that its working interest production increased by 8.6 per cent to 51,720 boepd, in the upper half of the guidance range for the period, adding, “The Amukpe-Escravos Pipeline (AEP) is supporting higher export volumes from key Western Assets. The new OP-15 well is boosting liquids production at OML 40, with Oben-34 well-boosting gas production.”

The Company achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1, adding that, “full-year guidance is retained at 45-55 kboepd, and Carbon intensity figure stands at 26.4kg/boe.

“Revenues up 37% to $331.0 million (including overlift of $75.4 million), driven by higher production volumes. Strong cash generation of $139.9 million, capex of $44.7 million. Balance sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included).

“Working interest production increased by 8.6% to 51,720 boepd, in upper half of guidance range. Amukpe-Escravos Pipeline (AEP) supporting higher export volumes from key Western Assets. New OP-15 well-boosting liquids production at OML 40, with Oben-34 well-boosting gas production. Achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets. Full-year guidance retained at 45-55 kboepd. Carbon intensity figure of 26.4kg/boe.”

However, commenting on the results, Mr. Basil Omiyi, Independent Chairman, stated: “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 our annual core dividend target from US 10 cents to US 12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.

“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 the first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.

“I wish to thank all our staff for remaining focused on delivering this 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.”

He added: “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.”

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