Seplat Energy records 36.9% revenue growth despite crisis

Bisola David
Bisola David
How increased electricity access will drive investment - Seplat

Seplat Energy Plc, an indigenous oil exploration business, increased its revenue from $241.8 million to $331 million in the first quarter of 2023, a 36.9% increase.

The Punch reported that the company’s core annual dividend aim was raised by 20% to US 12 cents with a quarterly dividend of three cents, according to its unaudited financial statement for the three months ended March 31, 2023, which was submitted to the Nigerian Exchange Limited on Thursday.

Increased crude output helped to support the growth in income during the year under review, reducing the impact of falling oil prices.

The company reports that the total amount of crude that was lifted during the period was 3.6 MMbbls, an increase of 63.6 percent from 2.2 MMbbls in Q1 2022. The average pipeline loss factor for the group was reported to be 3.5 %.

In a similar vein, gas revenue increased by 29.1% to $33.0 million (Q1 2022: $25.6 million), driven by an increase in both sales volume and realized gas prices.

While gas production increased by 15.5% to 11.2 Bscf (Q1 2022: 9.7 Bscf), the average realized gas price was higher at $2.88/Mscf (Q1 2022: $2.76/Mscf).

According to Seplat, the increase in the average realized gas price reflected the effects of price increases on gas users.

Pretax profit increased by 69% to $198.3 million from N117.3 million in Q1 2022, with a margin of 60% as opposed to 48% in the same period in 2022.

According to the report, “Overall, increased production of gas and liquids is a reflection of the Amukpe-Escravos Pipeline’s benefits, which include decreased downtime, stronger liquids output, and associated gas production. Additionally, the completed Oben-34 gas has well-increased gas production.

Seplat Energy’s management and staff once again delivered excellent performance, with production volumes up, unit production costs 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, according to a statement to the Nigerian Exchange Limited and London Stock Exchange from Seplat’s Chairman, Basil Omiyi. We consequently declared a US 3 cent per share dividend for Q1 2023.

“The year has gotten off to a fantastic start, and we are now reaping the rewards of the AEP, which allows us to export a sizable amount of oil. We maintain Q4 2023 as the delivery date for the first gas at the ANOH gas plant because our partners made significant work throughout the quarter in completing the OB3 and Spur pipelines and the required gas wells. We remain in contact with all pertinent parties about the potential purchase of MPNU and are optimistic about the outcome.

Omiyi said that despite the recent leadership crisis the firm has experienced, employees were united in their support of Seplat’s management team and focused on producing this outstanding performance “against a backdrop of unnecessary distractions that will not derail our progress to becoming Nigeria’s leading energy supplier”

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