Home / Business / Seplat Energy’s 2022 FY revenue grows by 29.8% to N403.9bn

Seplat Energy’s 2022 FY revenue grows by 29.8% to N403.9bn

Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its audited results for the full year ended 31 December 2022, recording a rise in profit before tax by 15.3 percent to N86.7bn from N71bn year-on-year. The company also generated cash from its operations to the tune of N242.4bn from N150.9bn year-on-year, rising by 51.6 percent.

The energy company also grew its revenue by 29.8 percent to N403.9bn from N293.6bn year-on-year; as its gross profit soars to N197.2bn from N114.2bn year-on-year, rising by 63 percent.

Seplat Energy is paying a US7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year. This amounts to a full-year dividend of US15 cents, representing a dividend yield of around 11 percent at the current LSE share price.

In its operations, Seplat Energy’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in Q3. Use of Amukpe-Escravos Pipeline (AEP) enables high uptime in December, an exit rate of 53 kboepd. The Company completed 13 wells including two wells for the ANOH gas processing plant. ANOH Gas Processing Plant is 95 percent mechanically complete, awaiting third-party infrastructure completion.

Special Dividend

Board recommends a special dividend of US5.0 cents per share in addition to a final dividend of US2.5 cents per share.

Operational highlights

Working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in Q3.

Use of Amukpe-Escravos Pipeline (AEP) enables high uptime in December, an exit rate of 53 kboepd

Completed 13 wells including two wells for the ANOH gas processing plant.

ANOH Gas Processing Plant is 95% mechanically complete and awaiting third-party infrastructure completion.

Safety culture maintained, one LTI recorded in October, LTIF for the full year is 0.1.

Financial highlights

Revenues of $951.8 million, up 29.8%

Adjusted EBITDA $416.9 million, up 12.1%

Strong full-year cash generation of $571.2million against capex of $163.3million and $140.3million transaction deposits

A strong balance sheet with $404.3 million cash at the bank, net debt of $365.9 million

The full-year production cost of $10.3/boe

2022 Ubima divestment receipts were $18.6 million out of $55.0 million (additional $0.9million received in Jan 2023)

 

Corporate updates

Continue to pursue approvals for the acquisition of the entire share capital of MPNU.

Finalized New Energy investment plan, identified near-term opportunities for consideration, and FID late 2023.

Commenced implementation of the roadmap to achieving net zero by 2050

Provisional applications for voluntary conversion of operated Oil Mining Leases under the Petroleum Industry Act

Work on-going spinning out the Midstream Gas business in line with PIA provisions.

First Climate Risk and Resilience Report to be published at end of March 2023 under TCFD guidelines.

Carbon intensity of production figure published: 23.9Kg/boe

Outlook for 2023

Full-year production guidance of 45-55 kboepd (excluding ANOH), capex expected to be $160 million.

Increased use of AEP will improve revenue assurance.

Sibiri appraisal wells indicate results on the high side of initial Oil In-Place estimates, with FID targeted by the end of 2023.

ANOH’s first gas guidance moved to Q4 2023 owing to delays in third-party infrastructure.

MPNU: continuing to pursue a reaffirmation of the Ministerial approval received on 8 August 2022.

Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc said:

“I am delighted that our strong financial performance will enable the payment of a US7.5 cent final dividend, despite the significantly disrupted production we experienced in the second half of the year. The full-year dividend of US15 cents represents a dividend yield of around 11% at the current LSE share price.

As we enter 2023, the business is in a very healthy state, with new wells coming onstream, encouraging appraisal drilling underway at Sibiri, and alternative export routes ensuring good export performance in January and February this year. Our gas business continues to develop, with the first gas expected from ANOH in Q4 this year, and we are now in the process of separating our Midstream Gas business from the Upstream unit to unlock new value for shareholders.

We are continuing to pursue the Presidential approval received on 8th August 2022 for the MPNU acquisition and we remain focused on concluding the transaction within the remaining term of President Buhari before a new president is sworn into office at the end of May 2023.

We are implementing our roadmap to net zero and have made encouraging progress with a 35% reduction in emission intensity last year. The major reduction in carbon emissions is routine flaring which we are on target to eliminate by the end of 2024. Alongside these efforts, and as part of our stated strategy to become Nigeria’s energy champion across the entire value chain, we are planning to invest in gas-to-power and solar power projects with FID targeted for later this year if the projected returns meet our internal hurdle rates.

We are confident in our outlook for 2023, with the new Amukpe-Escravos Pipeline working well, our drilling cost reductions and efficiencies being delivered, and ANOH’s first gas expected in Q4 once 3rd party infrastructure is completed, our business is on a firm footing to facilitate significant growth and higher returns for stakeholders.”

 

 

 

About Gladys Johnson

Gladys Johnson The Publisher/Editor-In-Chief Global Business Drive Phone: +13465619347 Email: info@globalbusinessdrive.com gladysjohnsonmedia@gmail.com gladys@globalbusinessdrive.com globalbusinessdrive@gmail.com

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