H1 2024: Seplat Energy grows PBT to N244bn
Seplat Energy PLC, a prominent Nigerian independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has reported its unaudited results for the six months ending June 30, 2024, revealing robust financial performance amidst operational advancements. The company announced a total dividend of US 6 cents per share for the period, reflecting its strong profitability and cash generation capabilities.
During the first half of 2024, Seplat Energy significantly increased its profit before tax (PBT) to N244 billion from N43.5 billion year-on-year, underpinned by a substantial cash generation of N308.2 billion.
Despite a slight decrease in production to an average of 48,407 barrels of oil equivalent per day (boepd), the company maintained operations within its guidance range of 44,000 to 52,000 boepd.
Operational highlights included progress on the ANOH gas project, slated to commence production by the end of the third quarter of 2024, and advancements in infrastructure development for the OB3 pipeline.
Additionally, Seplat achieved over 4.9 million hours without Lost Time Injury (LTI) across its assets during the first half of the year, demonstrating strong safety performance.
Financially, Seplat reported revenues of $421.6 million, down from $547.0 million in the same period last year, primarily attributed to underlifts totaling $55.8 million. The company’s average realised oil price stood at $85.55 per barrel and gas price at $2.95 per thousand standard cubic feet (Mscf). Despite lower revenues, adjusted EBITDA rose to $267.3 million, bolstered by effective cost management.
Looking ahead, Seplat Energy maintained its full-year production guidance of 44,000 to 52,000 boepd and a capital expenditure range of $170 million to $200 million. The company remains focused on completing critical infrastructure projects and securing regulatory approvals, including its proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU).
Commenting on the results, Mr. Roger Brown, Chief Executive Officer of Seplat Energy, expressed confidence in the company’s performance and strategic initiatives moving forward.
He highlighted ongoing efforts to enhance gas production in support of Nigeria’s energy goals and reaffirmed Seplat’s commitment to sustainable growth and operational excellence.
“Seplat Energy delivered a solid performance in the first half of 2024. Continued operational strength positions us well for the second half of the year, which is set to be an active one for the company. Reported cash generation was softened by the underlift in the period, but this is largely a timing effect and our cash generation and balance sheet remain strong.
“In May we were honoured to receive President Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for first gas in 3Q 2024. We thank our government partners for their efforts towards completion of critical pipeline infrastructure in recent weeks. In 2H 2024 we also look forward to first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production. We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas’.
“In our oil business, early results from Sibiri have been modestly ahead of expectations, as well, having completed the first of two planned wells, production at Abiala should commence in the coming weeks, finally we look to higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved. Combined with growth in our gas business, and we are looking forward to a strong second half with momentum to carry into 2025.
“During the quarter a number of important steps were made that support completion of our proposed acquisition of MPNU. We are confident and committed to its completion and continue to work with regulators, government, and other parties to ensure its successful completion,” he said.
The market response to Seplat’s financial results and strategic outlook remains positive, reflecting investor confidence in the company’s resilience and capacity to navigate evolving market dynamics in the energy sector.
