Seplat Energy’s Earnings Increase By 11.5% to $1.06 Billion In 2023 Financial Year
...As Firm Declares US15 Cents Dividends, Assures Shareholders Of Growing Wealth, Sustainability
By Edu Abade
Seplat Energy Plc has declared an 11.5 percent increase in its total revenues to $1.06b in the company’s financial results for the 2023 fiscal year.
Chairman, Board of Directors of Seplat Energy, Udoma Udo Udoma, who disclosed this during the company’s 11th Annual General Meeting (AGM), which was held virtually, restated its commitment to sustainability and growing shareholders wealth, even as it declared US15 cents per share dividends earlier proposed by the Board of Directors for the year ended December 31, 2023.
The declared dividends comprised a special dividend of US3 cent per share and US 12 cent per share final dividend for the year.
Highlighting Seplat Energy’s financial results, Udoma said: “We delivered strong results in 2023 against a weaker oil price environment. Despite the 17 percent decline in average price of Brent crude, we grew our oil and gas revenue by 11.5 percent to $1.06b, crossing the $1.0b mark for the first time, supported by improved production and asset availability.
“We also made significant progress on several of our growth projects, showing a willingness to not just deliver value today but to plan for tomorrow. Our average daily production also increased by 8.3 percent in 2023, to 47,758 barrels of oil equivalent per day (boepd) from 44,104 boepd in 2022, with revenue from oil and gas sales for 2023 rising to 11.5 percent to $1.06b from $952.0m in 2022. This excludes the reported $98.9 million over-lift. We also completed 14 new wells across our operated and non-operated assets.”
Also speaking, Chief Executive Officer (CEO) of Seplat Energy, Roger Brown, reiterated the company’s commitment to sustainability and energy transition, outlining Seplat Energy’s initiatives to increase its contribution to Nigeria’s power sector by providing lower carbon and renewable energy solutions.
He said: “As Nigeria’s leading indigenous energy company, we recognize our duty to minimize the impact of our operations on the environment. We aim to create increasingly sustainable energy solutions to provide access and meet increasing energy demand, while addressing the critical challenge of climate change for society and our business.
We are positioned for decarbonization through several strategic initiatives and continue to lead Nigeria’s domestic gas supply, which accounts for about 25 percent of the country’s gas-to-power supply.
“A key focus for us has been the aggressive programme to eliminate gas flares by 2025, which is a significant part of our commitment to achieving net zero by 2050. We are also exploring using solar power where feasible and have initiated a diesel replacement program to increase the use of gas, a less carbon-intensive fuel, for power generation in our operations. To support these decarbonization efforts, Seplat Energy has committed substantial financial resources.
“In 2023, we allocated $5.7m for projects to end routine gas flares in our operations. This includes installing gas compression facilities and incineration at various flow stations. Upon completing these projects, we expect to significantly improve our gas handling capacity and reduce flares, thus monetizing flare gas in alignment with our corporate strategy and national initiatives.”
Chief Operating Officer (COO) of Seplat Energy, Samson Ezugworie, said: “To date, the company has achieved a cumulative 10.6 million-man hours since the last lost time injury (LTI) recorded on October 13, 2022. Safety remains our top priority.
“Several training sessions on incident management, process safety management training for operations, engineering, maintenance, wells and HSE Team members were conducted over the past year to ensure our teams in the various asset locations are updated on the latest procedures on safety.
“In addition to these, the company is on a path to achieving ISO 45001 and 14001 standards certifications, demonstrating its commitment to top-tier safety and environmental performance. These certifications are globally acknowledged benchmarks for occupational health and safety management systems and environmental management systems, respectively.”
Shareholders at the meeting commended Seplat Energy performance and dividend payout amidst the challenging market conditions.
While commending the board and management for their effective leadership and prudent management of the company’s resources, a shareholder, Patrick Ajudua, remarked: “I want to commend the dividend declaration by Seplat. They have earlier given us a special dividend of US3 cents also and this is a reassurance that investors needed to continue to invest in the company. “I also commend the financial performance which saw the gross earnings grow significantly. The company has been doing well and I also commend Seplat on the ANOH project. We pray the company continues to thrive in spite of the challenges in the industry.”
Another shareholder, Faruk Umar, said: “I am happy that Seplat has been helping the nation in the sense that the tax that we are paying the government is very significant, not to talk of the dividends that we have been getting in dollars, which has never gone down. Also, this is one of the three companies that I have seen in the capital market having many independent directors and this is good for corporate governance. Seplat’s dual listing is accompanied by the highest level of corporate governance adherence and this is good.”
While commending Seplat Energy on its smooth leadership transition since its inception, a shareholder, Mrs. Oludewa Thorpe, said: “I commend the board and management for the smooth transition in leadership from 2009 to 2024. This is good for the company and for corporate governance.”
