Seplat Energy PLC, a leading Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, yesterday released its unaudited results for the nine months ended 30 September 2024, with its revenue hitting N1.071 trillion from N478.1bn Year-on-Year with cash generated from its operations rising to N633.8bn from N213.8bn Year-on-Year.
The company said the result represents “a strong underlying business performance” which supports an increase to core dividend by 20% to US3.6 cents per share in 3Q 2024 alone.
Total core dividend declared to date in 2024 is US9.6 cents per share.
Working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance.
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Seplat Energy’s operating profit also rose to N411.3bn from N91.3bn Year-on-Year, as the company achieved 8.2 million-man hours with Lost Time Injury (LTI).
According to the highlight of the results, working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance.
Daily average liquids production increased by 6% and gas production decreased by 11% versus 9M 2023. Annual guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd).
Also its drilling activity increased as it completed nine wells year to date.
Similarly, 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.
For the indigenous oil firm, the year 2024 is significant as it received Ministerial Consent for acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’).
Commenting on the results, Chief Executive Officer, Seplat Energy, Mr Roger Brown, said the improvement in cash generation year over year has increased the dividend pay by 20 % in the year 2024.
He said, “We have brought two new fields on stream, most recently Abiala, and are approaching completion of the Sapele gas plant. 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% increase in the core quarterly dividend and note that this is reflective of the strength of the underlying business. The increase does not factor in the organic (ANOH) and inorganic (MPNU) growth opportunities that 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 every effort is now on completing the transaction.”
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