Seplat Energy grows Profit Before Tax to N86.7bn
Seplat Energy says it has posted N86.7 billion as Profit Before Tax (PBT) in its year ended, Dec. 31 2022, audited results.
The company said this in a statement signed by Director, External Affairs & Sustainability of Seplat Energy, Dr Chioma Nwachuku during the week and made available to journalists in Lagos.
The figure represents a rise of 15.3 per cent growth when compared with the N71 billion recorded in the corresponding period in 2021.
The company also generated cash from its operations to the tune of N242.4 billion from N150.9 billion year-on-year, rising by 51.6 per cent.
The energy company also grew its revenue by 29.8 per cent to N403.9 billion from N293.6 billion year-on-year.
Its gross profit increased to N197.2 billion from N114.2 billion recorded in 2021, rising by 63 per cent.
Also, Seplat Energy is paying a 7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year.
This amounts to a full-year dividend of 15 cents, representing a dividend yield of around 11 per cent at the current London Stock Exchange (LSE) share price.
The company’s working interest production averaged 44 kboepd, impacted by outages of key infrastructure predominantly in third quarter.
The company completed 13 wells, including two wells for the ANOH gas processing plant.
ANOH Gas Processing Plant is 95 per cent mechanically complete and is awaiting third-party infrastructure completion.
The board recommends a special dividend of five cents per share in addition to the final dividend of 2.5 cents per share.
Chief Executive Officer (CEO), Seplat Energy Plc, Mr Roger Brown, said he was delighted by the company’s strong financial performance.
According to him, the performance will enable the company to pay 7.5 cent final dividend, despite the significantly disrupted production experienced in the second half of the year.
Brown said that the year dividend of 15 cents represents a dividend yield of around 11 per cent at the current LSE share price.
He said, “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 first gas expected from ANOH in fourth quarter 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 the 8 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 per cent reduction in emission intensity last year.”
The CEO noted that major reduction in carbon emissions was routine flaring, saying, “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.
“ANOH’s first gas expected in fourth quarter once third party infrastructure is completed, our business is on a firm footing to facilitate significant growth and higher returns for stakeholders,” Brown said.
