…Q1 Gross profit hits N91.1bn, rising by 69%
Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, has announced its unaudited results for the three months ended 31 March 2023, recording a rise in profit before tax by 3.2 per cent to N39.5bn from N34.7bn year-on-year. The company also reported that its core annual dividend target has been raised by 20 per cent to US 12 cents; declaring a Q1 dividend payout of US 3 cents per share.
The energy Company’s also grew its Q1 revenue by 36.9 per cent to N152bn from N100.6bn year-on-year, driven by higher production volumes; as its gross profit for the period soars to N91.1bn from N48.8bn year-on-year, rising by 69 per cent.
Seplat Energy recorded a strong Q1 cash generation of $139.9 million and capex of $44.7 million; with Balance Sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included).
In its operations, Seplat Energy’s working interest production increased by 8.6 per cent to 51,720 boepd, in upper half of guidance range for the period. The Amukpe-Escravos Pipeline (AEP) is supporting higher export volumes from key Western Assets. The new OP-15 well is boosting liquids production at OML 40, with Oben-34 well boosting gas production.
The Company achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets in Q1. Full-year guidance is retained at 45-55 kboepd, and Carbon intensity figure stands at 26.4kg/boe.
- Revenues up 37 per cent to $331.0 million (including overlift of $75.4 million), driven by higher production volumes
- Strong cash generation of $139.9 million, capex of $44.7 million
- Balance sheet strengthened with $459.7 million cash at bank, net debt down to $288.2 million ($130 million MPNU cash deposit not included)
- Unit production opex of $9.0/boe
- Average realised oil price of $82.32/bbl
- Average realised gas price climbed to $2.88/Mscf following price renegotiation with clients leading to upward price adjustments.
- Working interest production increased by 8.6 per cent to 51,720 boepd, in upper half of guidance range
- Amukpe-Escravos Pipeline (AEP) supporting higher export volumes from key Western Assets
- New OP-15 well boosting liquids production at OML 40, with Oben-34 well boosting gas production
- Achieved more than 3.8 million hours without Lost Time Injury (LTI) at Seplat-operated assets
- Full-year guidance retained at 45-55 kboepd
- Carbon intensity figure of 26.4kg/boe
- Core annual dividend target raised by 20 per cent to US 12 cents; Q1 dividend declared of US 3 cents per share
- Applications submitted for conversion of Oil Mining Leases under the new PIA regime
- The Company announced its Board of Directors’ Succession Forward Plan on 25 April 2023.
Update on proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU)
- We remain confident that the proposed acquisition will be brought to a successful conclusion and continue to engage with all relevant parties.
Commenting on the impressive results, Mr. Basil Omiyi, Independent Chairman, said, “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the Board to increase our annual core dividend target from US 10 cents to US 12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.
“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil. On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.
“I wish to thank all our staff for remaining focused on delivering this strong performance, united in their support of Seplat’s management team, against a backdrop of unnecessary distractions that will not derail our progress and ambition to become Nigeria’s leading energy supplier.
“The Board announced its Succession Forward Plan earlier this month and I look forward to steering this national energy champion in my final year as Chairman, fully resolved to implement the strong corporate governance that will enable Seplat Energy to grow and achieve its ambition to create a sustainable business that maximises returns for all stakeholders, while delivering an energy transition that drives social and economic benefits for all Nigerians.”
FG committed to implementing CNG Keke policy – NOA
The Director-General of National Orientation Agency (NOA), Malam Lanre Isa-Onilu, on Friday restated the Federal Government’s commitment to implementing Compressed Natural Gas (CNG) Keke (tricycle) policy.
Isa-Onilu, who said this on Friday at a news conference in Abuja, said that the policy was part of government’s efforts to alleviate the current economic hardship facing the citizens.
Compressed Natural Gas (CNG) is a feasible gaseous fuel that is relatively very cheap, environmentally friendly, safe to handle and has abundant available energy.
The director-general added that the policy also geared towards cutting transportation cost, to ameliorate the suffering of citizens.
According to him, the CNG will offer opportunity to local farmers to move their crops at affordable cost from their farms to the market.
“CNG will reduce fuel dependency and scarcity within the country by a wide margin, as well as strengthen uniformity of national transit system.
“Government will deploy 10,000 CNG filling stations across the country, while private marketers are also in the process of adding CNG points to their business,” NOA boss said.
According to him, the Federal Government is committed in providing Nigerians with affordable energy options. The use of CNG stands as a testament to this commitment.
“CNG offers cost savings for consumers, businesses, and government operations in ensuring that energy remains accessible to all.
“As part of our environmental stewardship, the adoption of CNG aligns with the government’s goal to create a cleaner and healthier nation.
“By choosing CNG over traditional petrol, we reduce harmful emissions such as carbon dioxide (CO2) nitrogen oxides (NOx) and particulate matter, in contributing to improve air quality and smaller carbon footprint.”
The director-general said that government recognised the importance of utilising domestic resources to enhance energy security, by the promotion of the use of CNG, sourced locally.
This, he added, would reduce dependence on imported petroleum products, as well as supporting national economic resilience.
He restated the agency’s commitment in leveraging on the cost cutting benefits of this CNG Keke, to ensure that its community orientation mobilisation officers reach out to communities with government messages.
According to him, the agency has partnered with the Ecomead company to enlighten Nigerians on the Compressed Natural Gas(CNG) Keke tricycle policy.
Also speaking, Chief Executive Officer, Ecomead Company, Mr Kayode Zubaim, commended NOA for embarking on government’s CNG campaign programme to ensure Nigerians were updated with the policy.
According to him, the provision of CNG is apt and will help to cushion the effect of fuel subsidy removal on Nigerians.
He added that the decision of President Bola Tinubu made Ecomead to wear a thinking cap, to contribute its quarter to the nation’s development.
“After carrying out series of research, we are able to come up with a brand that will use both CNG and patrol.
“But the truth is that it is manufactured to use CNG with the capacity of five kilogramme that rider can manage for minimum of one week.
“CNG is environmental friendly and such will help to reduce Nigerians problems, especially those in the rural communities and communities transport system.
“With NOA partnering with us, we can get across to all part of the country in making sure Nigerians know about CNG Keke ,” he said.
He added that the issue of transportation would drastically reduce with the intervention of CNG when Nigerians made use to the product .
Mr Shamrat Sharna, Regional Manager, Simba TVS, said CNG looked new to Nigeria, but the product has been used all over in India.
FCTA uncovers illegal refinery in Abuja
The Federal Capital Territory Administration (FCTA) has discovered the presence of an illegal oil refining warehouse in Mabushi, Abuja.
The Director, Department of Development Control, Mukhtar Galadima, who spoke to journalists said that the illegal refining site was uncovered during the continuation of the city cleaning exercise.
Galadima disclosed that about three to four plots of land designated for commercial purposes have been converted to an area where oil and diesel are being adulterated and circulated to other parts of the city.
He said that the city sanitation task force will look into the provision of the law and make necessary recommendations to the FCT Administration for further actions on the plots used for the activity.
He added that there was no arrest, but the items used in carrying out the illegal refining have been impounded.
“During the continuation of our city sanitation exercise in Mabushi opposite Mobile filling station on Ahmadu way, we discovered an illegal refining site where oil and diesel are being adulterated, we have done the needful by moving the items to Nigerian Security and Civil Defence Corps.
“From what we have seen so far, about three or four plots of land designated for commercial purposes have been converted to unapproved activities, which we believe the owners are fully aware of. There will be consequences. We are going to look at the provision of the law and make necessary recommendations to the FCT Administration,” he said.
Gas production declines despite FG’s N250bn intervention fund to 15 companies — Report
The Energy Institute report has revealed that the production of natural gas fell last year despite an N250 billion intervention fund provided to fifteen companies.
According to the industry report in partnership with KPMG, Nigeria’s natural gas production dropped by 4 billion cubic feet meters between 2021 and 2022.
The country’s gas production recorded at 39 billion cubic feet meters as of 2012 was on a steady growth and had grown to 49 billion cubic feet meters as of 2020, suddenly crashed 45 billion cubic meters in 2021, and then 40 billion cubic meters last year.
According to the report, “The development happened despite a N250 billion intervention fund by FG through the Central Bank of Nigeria, out of which N130 billion was doled out to 15 companies for the construction of Compressed Natural Gas conversion centres.
“The NGEP was introduced by the Federal Government to make the CNG the fuel of choice for transportation and the Liquefied Petroleum Gas, the fuel of choice for domestic cooking, captive power and small industrial complexes.”
After the flag off of NGEP, the CBN also introduced the N250 billion intervention facility to help stimulate investment in the gas value chain as part of its efforts at stimulating finance to critical sectors of the economy.
The fifteen companies – Dangote Oil Refinery, Nipco Gas Ltd, Nipco Plc, Hyde Energy Ltd, Lee Engineering and Construction Company, Pinnacle Oil and Gas FZE, Transit Gas Ltd, Amalgamated Oil Company Nig Ltd, First Modular Gas Systems Ltd, NOVAGAS Ltd, Greenville Liquefied Natural Gas Company, AP LPG Limited, and MOB Integrated Services Limited, Delta State Government, and Gas Nexus Ltd that received a combined N130 billion, would on Thursday face the Senate Committee on gas chaired by Jarigbe Agom Jarigbe.
The summon letter by the Senate said, “The invited companies are required to appear with their progress reports, stating location or projects and the current status of the projects.”
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