Seplat Energy’s gross profit rises to N349.3bn in 2023

…Receives approval for operation of OML 40

Seplat Energy Plc has recorded a growth in gross profit in its twelve months ended 31 December 2023 results.

The energy company reported a gross profit rise of 14.5 percent from N197.2bn to N349.3bn, and achieved more than 8.7 million hours without Lost Time Injury (LTI) on Seplat-operated assets in 2023.

It also recorded a growth of 12 percent in revenue from N403.9bn to N696.9bn.

In a press statement, the company revealed that the Board recommended a special dividend of US 3 cents per share, in addition to Q4 2023 declared dividend of US 3 cents per share. Core dividend declared for 2023 is US 12 cents per share, up 20 percent on 2022. Therefore, the total dividend declared is US 15 cents per share.

Seplat Energy’s 2024 production guidance is put at 44-52 kboepd. Guidance assumes availability of TNP from 3Q 2024, and assumes ANOH contribution in line with guidance.

Initial 2024 capex guidance is $170-200 million. Drilling capex flat on 2022 (13 wells in base plan). Seplat will fund capex on Abiala, a marginal field development tied into OML40.

The company also announced that it has obtained regulatory approval for the full lifecycle Field development plan (FDP) for the Sibiri oil discovery on OML40.

Commenting on the results, Chief Executive Officer, Seplat Energy Plc, Roger Brown said, “Seplat Energy’s 2023 results illustrate the Company’s ability to deliver production growth, fortify our balance sheet and reward shareholders despite facing some unexpected challenges during the year.

“Operational performance was strong, production increased 8 percent over 2022 and we recorded the lowest level of reconciliation losses seen in recent years, a testament to the improving security efforts on the Niger Delta. Drilling yielded positive results, and I’m pleased to report strong 2P reserves growth, up 9 percent on prior year estimates. Our revenue exceeded $1bn, and while costs increased, our proactive approach meant we generated more than $260m of free cash flow in the year, allowing us to continue rewarding our shareholders and further reduce net debt.

“Our strong financial position, excellent operational performance and robust outlook means that we are delighted to declare a special dividend again this year, lifting the total dividend for the year to US$15 cents.

“In 2024, we look forward to a number of key growth events. We are moving forward on both the Sibiri and Abiala developments on OML40. Clear progress is also being made on the important ANOH gas project, with first gas expected in 3Q 2024. Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year.

“I’m delighted to welcome Mr. Udoma as Seplat Energy’s new Chairman and Mr. Rabiu as SINED and wholeheartedly thank Mr. Omiyi and Mr. Okeahalam for their longstanding support and guidance. Nigeria’s Oil & Gas industry is going through a generational change and as we reach our tenth year as a listed company, we fully intend to play an important role as Nigeria’s leading independent company.”