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H1 2022: Seplat Energy declares 81.9% increase in revenue



By Philemon Adedeji

Seplat Energy plc has declared 81.9 per cent increase in revenue to N219.2 billion in its half year H1 unaudited financial statement for the period ended June 30, 2022 from N120.4 billion declared in prior-year H1 2021 results

Seplat Energy is a leading indigenous Nigerian oil and gas exploration and production company with a strategic focus on Nigeria, reported a 260.3 per cent massive increase in Profit Before Tax (PBT) to N87.3 billion in H1 2022 from N24.2 billion reported in H1 2021.

The group unaudited result revealed Profit After Tax (PAT) of N35.4 billion as of end of June 30, 2022 from N14.1 billion recorded in the comparable period of 2021.

Seplat Energy recorded a 151 per cent growth in Profit After Tax in H1 2022. The cost of sales increased during the period of study, declaring a 22.5 per cent increase standing at N105.1 billion in H1 2022 from N85.7 billion achieved in H1 2021.The growth in cost of sales causing gross profit to grew to a 229 per cent from N34.7 billion recorded in H1 2021 to N114.1 billion recorded in 2022.

During the period under review, the group operating profit gained a 138.9 per cent to N102 billion in H1 2022 from N42.7 billion achieved in H1 2021.

Despite the growth in top-line revenue, general and administrative expenses grew in double digits, subduing bottom-line profit.

In addition, the oil and gas exploration company grew its Earnings Per Share (EPS) by 53.7 per cent to N58.19 in H1 2022 from N37.86 generated in prior-year period.

Commenting on the results, which were released to the NSE and LSE on Thursday, Roger Brown, CEO of Seplat Energy Plc, said production increased strongly in the second quarter, achieving 52.4 kboepd across the company’s operations, and the company expects to maintain higher volumes for the rest of the year as it plans to export liquids through the more secure Amukpe-Escravos Pipeline.

“Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95 per cent interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40,” Brown said.

“This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year. We remain confident that our transformational acquisition of MPNU will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer,” he said.

Brown said Seplat has committed to stopping routine flaring as it recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024.

“In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states. All of these initiatives demonstrate our strategic commitment to building a sustainable company that delivers energy transition for the benefit of all Nigerians,” he said.

Seplat Energy reiterated that the Sales & Purchase Agreement (SPA) signed on 25 February, 2022 to acquire Exxon’s shallow water operations in Nigeria, MPNU, remained valid and the company remained confident that the proposed acquisition would be brought to a successful conclusion in accordance with the law.

On the company’s outlook, Seplat said full-year production guidance for 2022 reflects expected third-party downtime and the derecognition of Ubima and has been narrowed to 50,000 to 54,000 boepd on a working interest basis, comprising 30,000 to 33,000 bopd liquids and 116 to 121 MMscfd (around 20,000 to 21,000 boepd) gas production.

“Capital expenditure expectation for 2022 remains at around $160 million. The company expects to drill four additional oil wells in the coming quarter to arrest decline and support production growth across the asset base, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas,” Seplat said.

capital market

NGX: Sell-offs in banking stocks drop value of transactions down 2.60%



Bearish sentiment persisted on banking stocks at the equity market on Friday, making the value of transactions traded on the floor of the Nigerian Exchange Ltd.(NGX) down by 2.60 per cent.

Analysis of the market activities indicated trade turnover settled lower relative to the previous session.
Specifically, investors transacted a total of 257.86 million shares valued at N5.40 billion exchanged in 7,168 deals, as against 285.91 million shares worth N5.54 billion exchange in 7,726 deals posted on Thursday.
Consequently, the market capitalisation, which opened at N56.469 trillion, shed N173 billion or 0.31 per cent to close at N56.296 trillion.
The All-Share Index also dropped 0.31 per cent or 306 points to settle at 99,539.75, compared to 99,845.91 recorded in the previous session.
As a result, the Year-To-Date (YTD) return dipped to 33.12 per cent.
Sell-offs in Guaranty Trust Holding Company (GTCO), FBN Holdings, Zenith Bank,  Access Corporation,  Stanbic IBTC Bank, Jaiz Bank, as well as United Capital and Unilever Nigeria, among other top decliners, drove the market to a negative terrain.
Meanwhile, market breadth closed negative with 20 losers and 14 gainers.
On the losers’ chart, United Bank led by 10 per cent to close at N1.62, FBN Holdings followed by 9.83 per cent to close at N24.30, Tantalizers declined by 8.57 per cent to close at 32k per share.
Deap Capital Management shed 7.35 per cent to close at 63k and Caverton went down by 6.83 per cent to close at 1.50 per share.
On the gainers’ chart, FTN Cocoa Processors led by 9.60 per cent to close at N1.37, RT Briscoe trailed by 9.26 per cent to close at 59k, Livestock Feed gained N1.45 per share.
Royal Exchange Assurance added 8.06 per cent to close at 67k, while Consolidated Hallmark Plc rose by 7.44 per cent to close at N1.30 per share.
On the activity chart, UBA led in volume with 38.72 million shares traded in value of N888.55 million, while GTCO led in value with 38.30 million shares worth N1.31 biliion.
Access Corporation also sold 34.34 million shares worth N584.54 million, Zenith Bank traded 24.41 million shares worth N875.85 million and The Initiative Plc transacted 17.52 million shares worth N34.13 million.
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capital market

Financial expert seeks alignment of FG’s fiscal policy with CBN’s monetary policy



A financial expert, Mr Eddie Osarenkhoe, has advised the Federal Government to align its fiscal policy with the Central Bank of Nigeria’s monetary policy to achieve economic stability.

Osarenkhoe, the immediate past President of Finance Houses Association of Nigeria (FHAN), gave the advice while speaking with newsmen on Wednesday in Ota, Ogun.

He attributed the current steady appreciation of the naira to CBN’s reforms and the country’s ability to pay some of its debts.

Osarenkhoe applauded the CBN reforms which, he said, had helped to sustain the steady appreciation of the naira against the dollar.

The financial expert stated that CBN was able to check speculators in the foreign exchange, thus resulting in continuous appreciation of the nation’s currency.

“If the federal government is able to come up with fiscal policy in alignment with that of CBN, it will help the nation’s economy a great deal,” he said.

According to him, the economy needs to improve through exports to enable the country to earn more foreign exchange.

The naira has shown a remarkable strength against the US dollar, trading below N1,000 at the official market.

This development has been attributed to the strategic financial policies being implemented by the President Bola Tinubu-led administration and CBN.

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capital market

Investors lose N457bn as bearish sentiment continues



Investors in the Nigerian equities market lost N457 billion at the end of trading on Wednesday.

This followed the dip in the share value of Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors on the trading floor today.

After five hours of trading at the capital market, the equity capitalisation crashed to N56.5 trillion from N56.9 trillion posted by the bourse on Tuesday.

Similarly, the All-Share Index (ASI) fell below the 100,000-mark to 99,908.89 from 100,717.21 achieved by the bourse the previous day.

The market breadth was negative as 17 stocks advanced, 26 declined, while 78 others remained unchanged in 9, 074 deals.

Ikeja Hotel topped the gainers’ list with +10.00 percent to close at N7.26 from its previous N6.60 per share.

Fidelity Bank, Academy, Morison, and Prestige also increased their share prices by 9.88 percent, 9.77 percent, 9.71 percent, and 9.26 percent respectively.

On the flip side, Livestock Feeds, Computer Warehouse Group, International Energy Insurance, and FTN Cocoa Processors led other price decliners as they shed 10.00 percent, 9.79 percent, 9.79 percent and 9.72  percent each off their share prices.

UBA recorded the highest volume by trading 55.013 million shares valued at N1.28 billion in 1,092 deals followed by Zenith Bank with 47.029 million shares worth N1.69 billion traded by investors in 907 deals.

Access Corp traded 44.986 million shares valued at N789 million in 845 deals.

On the value index, Zenith Bank recorded the highest value for the day trading stocks worth N1.69 billion in 907 deals followed by UBA which traded equities worth N1.284bn in 1,092 deals.

Access Corp traded stocks worth N789 million in 845 deals.

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