Seplat Energy Plc, the prominent Nigerian independent energy company, listed on both the Nigerian Exchange Limited and the London Stock Exchange, has announced its unaudited results for the first half of 2023.
The company demonstrated robust growth with a 3.8% increase in revenue, reaching N278.3bn from N219.2bn year-on-year. Additionally, a gross profit of N140.6bn was recorded, a remarkable rise from N114.1bn in the previous year.
The strong operating performance was attributed to a 2% increase in production, supported by reduced losses on its Western Asset, benefiting from the Amukpe-Escravos Pipeline availability, and augmented output from OML40.
Seplat Energy remains committed to its Share Sale and Purchase Agreement for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited.
The company maintains its full-year production guidance at 45-55 kboepd and Capex guidance range at $160 – $190 million to support its objectives for the year.
Mr. Roger Brown, Chief Executive Officer of Seplat Energy, expressed his confidence in the company’s outstanding performance, attributing it to the support of Nigerian and international investors.
Revenues increased by 3.8% to $547.0 million, driven by improved production despite lower oil prices.
Cash generation reached $259.1 million, enabling funding of capex totaling $88.8 million and improved shareholder returns.
The balance sheet remains robust, with $381.0 million cash at the bank, despite the impact of the Naira devaluation on USD cash balances. Net debt stands at $380.0 million (excluding the $128 million MPNU cash deposit).
As part of the Ubima disposal, Seplat Energy received an additional $3.3 million, bringing total proceeds to $21.9 million.
The average oil price stood at $79.54/bbl, while the average gas price was $2.87/Mscf.
Seplat Energy achieved a remarkable milestone by surpassing 4.2 million hours without Lost Time Injury at its operated assets.
Seplat Energy also extended the Share Sale and Purchase Agreement for the acquisition of ExxonMobil’s share capital of Mobil Producing Nigeria Unlimited to ensure the transaction’s preservation. The company continues to work diligently with all parties to achieve a successful outcome.
The full-year production guidance remains unchanged at 45-55 kboepd, supporting the company’s objectives for the year.
Capex guidance range is set at $160 – $190 million (previously $160 million) to further support the Group’s growth ambitions.
Commenting on the impressive results, the Chief Executive Officer of Seplat Energy, Mr. Roger Brown, expressed his confidence in the company’s continued strong performance. He highlighted the benefits of the new Amukpe-Escravos Pipeline and the focus on improving operations, reducing costs, and derisking the business.
Mr. Brown emphasized Seplat Energy’s dedication to strengthening the company, improving governance and sustainability, and delivering affordable and reliable energy for Nigeria’s growing population.
He expressed optimism about the joint venture ANOH Gas Processing Plant, which is expected to significantly boost cash generation, fund additional investment in Nigeria’s energy infrastructure, and return higher dividends to shareholders.
The company remains confident that its proposed acquisition of MPNU will be approved, enabling Seplat Energy to become a significant energy supplier with diverse and productive assets, generating substantial benefits for Nigeria.
