News

Seplat Energy Revenue Increases To N1.071 Trillion In Nine Months Ending September 2024

...


Leading independent energy company listed on the Nigerian Exchange and the London Stock Exchange, Seplat Energy PLC, has announced its unaudited results for the nine months ended September 30, 2024 with total revenue amounting to N1.071trillion.

 The results showed a strong underlying business performance, which supports increase to core dividend by 20 percent to US3.6 Cents per share in the third quarter (3Q) of 2024, while total core dividend declared to date in 2024 hit US9.6 Cents per share.

-Advertisement- Place Your Advert Here

 Seplat Energy grew its revenue within the period to N1.071trillion from N478.1billion year-on-year with cash generated from its operations rising to N633.8billion from N213.8billion year-on-year.

Working interest production averaged 48,152 boepd compared to 47,525 boepd in the corresponding period of 2023 anchored on the midpoint of guidance.

Seplat Energy’s operating profit also rose to N411.3billion from N91.3billion year-on-year, as the company achieved 8.2 million-man hours without Lost Time Injury (LTI).


 Details of the financial highlights, however, revealed that revenues dipped to $715.3million by 11.7 percent as against $810.4million in 2023, largely due to overlift reported last year, but adjusting for overlift and underlift amounted $724million, representing 6 percent increase compared to $683million in the nine months of 2023.

-Advertisement- Place Your Advert Here

 Average price realizations include oil ($82.89 bbl) as against 2023 figure of $82.76/bbl, while gas reached $3.18/Mscf compared to $2.87/Mscf in 2023.

ALSO READ -  Again, Seplat Energy Commits To Best Practices, Empowerment Of Media Practitioners

 Adjusted EBITDA amounted to $383.0million as it rose by 25 percent from $306.4million in 2023 driven by higher revenue (adjusted) and lower costs, while cash generated from operations increased by 17 percent to $423.3million from $362.3million in the corresponding period of 2023.

 Its Capex also increased to $157.0million compared to $125.4million in 2023, reflecting higher drilling activity just as balance sheet cash amounted  to $433.9million as against $391.0million last year.

 Net debt of September ending dipped to $270million from $366million as of June 2024, while $38.5million of Reserve-Based Lending (RBL) borrowings was repaid to date, just as period end net debt to EBITDA was 0.5x.

-Advertisement- Place Your Advert Here

 Its operational highlights also showed that daily average liquids production increased by 6 percent and gas production decreased by 11 percent from 2023, while annual guidance narrowed to 46,000-50,000 boepd from previous 44,000-52,000 boepd.

 With the completion of its Oben Gas Plant turnaround maintenance activity, the company expects higher gas production in the fourth quarter (4Q) of 2024.

ALSO READ -  UAE Lifts Ban on Nigerian Passport Holders

 It equally achieved Abiala first oil output in September, as exports are expected to commence in Q4 2024, while targeting gross production level of c.5,000 boepd in Q1 2025.

 The company also witnessed improvement in its Trans Niger Pipeline (‘TNP’) availability, supporting higher OML 53 production, 3Q 2024 production of 2,097 bopd+85 percent compared to 3Q 2023 and enabling a resumption of OML 53 crude lifting at Bonny Terminal in September.

 Drilling activity increased due to the completion of nine wells to date. The ANOH Gas project saw completion of the 23km spur line, but the OB3 pipeline experienced further delays due to the technical challenges associated with the project.

 NGIC completion date has now moved to the end of 2024. Factoring in a further contingency, in line with our previously stated approach, first gas is now expected in 2Q 2025, among other ongoing projects.

 Commenting on the results, Chief Executive Officer of Seplat Energy, Mr. Roger Brown, said: “The first nine months of 2024 has seen Seplat Energy deliver a strong operational performance. Production has been consistent, drilling has improved and our main maintenance activities have been executed successfully. We have brought two new fields on stream, most recently Abiala and are approaching completion of the Sapele Gas Plant.

ALSO READ -  USAID, Coca-Cola Foundation Partner TechnoServe To Launch Nigeria Plastic Solutions Activity

 “Further delays to the start up at ANOH are frustrating, but we have been pleased to see the commitment of our government partner in tackling the technically challenging river crossing. Based on the latest estimates received, and maintaining a cautious stance on any risk of further delays, we update our guidance for first gas to Q2 2025.

“Commodity prices remained supportive, combined with operational uptime and timely cash calls from our joint venture partner, helped cash generation improve year over year, enhancing our balance sheet position. As a result, we are pleased to announce a 20 percent increase in the core quarterly dividend, a reflection of the strength of the underlying business.

 “The increase excludes the organic (ANOH) and inorganic (MPNU) growth opportunities the company is currently pursuing. We were delighted in recent days to receive ministerial consent for the acquisition of MPNU. The transaction will be transformational for Seplat Energy and we are focused on completing the transaction.”



Joshua Okoria

Joshua Okoria is a Lagos based multi-skilled journalist covering the maritime industry. His ICT and graphic design skills makes him a resourceful person in any modern newsroom. He read mass communication at the Olabisi Onabanjo University and has sharpened his knowledge in media practice from several other short courses. 07030562600, hubitokoria@gmail.com

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *


Back to top button