Seplat Energy PLC: Impressive revenue, profit amid severe competition in oil and gas company


By Philemon Adedeji

Seplat Energy plc, is a leading indigenous Nigerian oil and gas exploration and production company with a strategic, focus purposely to deliver sustainable energy solutions for society

Seplat Energy plc, in its unaudited financial statement ended June 30, 2022, the company has consistently maintained its growth trajectory in various measures, specifically in terms of revenue and profit achieved.

The oil and gas exploration and production company has once again put up an unforgettable performance in the year under review when compared with the company’s performance in previous year.

In the year under review, Seplat Energy reported a rapid growth in revenue among the other parameters to deliver double-digit growth in profits.

For 2022 unaudited half year result, the group reported a 81.9 per cent increase in revenue to N219.2 billion in half year (H1) 2022 from N120.4 billion recorded in prior-year period. This simply means the group recorded more sales in half year 2022 than the sales recorded in half year 2021, it is worth noting that 81.9 per cent rapid growth in revenue is a very good performance when compared with the company average.

In its unaudited results ended June 30, 2022 the Oil and Gas exploration and production company, reported Profit Before Tax (PBT) which stood at N24.4 billion in H1 2022 to N87.3 billion recorded in the comparable period of 2022, Seplat Energy plc has recorded a huge 260.3 per cent growth in profit before tax during the half year ended June 30, 2022.

The group unaudited results announced on the floor of Nigerian Exchange Limited (NGX), revealed Profit After Tax (PAT) which grew to N35.5 billion in H1 2022 compared with N14.1 billion recorded during the corresponding period of 2021, reflecting an improvement of 151 per cent.

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.


In the unaudited results, Seplat Energy recorded total assets as growth total liabilities and current total assets increased further.

The group total assets gained a 7.6 per cent to N1.4 trillion in H1 2022 from N1.3 trillion generated in 2021 unaudited results and accounts for the period ended June 30,2022. As  total non-current assets gained 1.5 per cent to N1.039 billion in H1 2022 from N1.024 billion in H1 2021, total current assets increased by 30.6 per cent to N364.2 billion in H1 2022 from N278.9 billion accounted in H1 2021.

In addition, total liabilities increased by 11.9 per cent from N599.7 billion in H1 2022 to N670.8 billion reported in H1 2021. As total current liabilities gained a 1.9 per cent to N202 billion in H1 2022 from N198.1 billion recorded in H1 2021, while total non-current liabilities increased by 16.2 per cent to N466.8 billion in H1 2022 from N401.6 billion in H1 2021


At a look in the analysis, Seplat Energy recorded profitability for the half year 2022 unaudited results, However when comparing to the  prior-year results, almost all the parameters are on upward performance.

Firstly, to achieve the profit margin of the company  appreciating to 39.8 per cent in H1 2022 from 20.1 per cent in H1 2021, this simply means for every N100 earned by the company in the cause of the year N39.80 of it can be translated in to profit higher than N20.10 achieved in the preceding.

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 percent 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 5 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.