Seplat Energy‘s revenue hits N1.07tr
Nigerian independent energy major, Seplat Energy PLC, has grown its revenue in nine months to N1.071trillion from N478.1billion year-on-year with cash generated from its operations rising to N633.8billion from N213.8billion y-o-year.
With double listing on both the Nigerian Exchange (NGX) and the London Stock Exchange (LSE), unveiled its unaudited results for the for the nine months ended September 30, 2024, with a strong underlying business performance which supports increase to core dividend by 20per cent to $3.6 Cents per share in 3Q 2024 alone. Total core dividend declared to date in 2024 is $9.6 cents per share.
The oil major said its working interest production averaged 47,525 boepd (9m 2023: 48,152 boepd), around the midpoint of guidance.
Seplat Energy’s operating profit also rose to N411.3billion from N91.3illion Year-on-Year, as the company achieved 8.2 million-man hours with Lost Time Injury (LTI).
The company said in a statement that its working interest production averaged 47,525 boepd (9M 2023: 48,152 boepd), around the midpoint of guidance.
It added that its daily average liquids production increased six per cent and gas production decreased by 11per cent versus 9M 2023.
Seplat said its annual guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd)
Continuing, the indigenous firm said Oben gas plant turnaround maintenance activity successfully completed, expect higher gas production in 4Q 2024.
“Abiala first oil achieved in September. Exports to commence during Q4 2024, targeting gross production level of c.5,000 bopd in Q1 2025.
“Trans Niger Pipeline (TNP) availability improving, supporting higher OML 53 production, 3Q 2024 production of 2,097 bopd +85per cent compared to 3Q 2023, and enabling a resumption of OML 53 crude lifting at Bonny Terminal in September.
“Drilling activity increased: completed nine wells year to date, seven from the 2024 program, which is on track. ANOH Gas project saw completion of the 23km spur line, but the OB3 pipeline experienced further delays due to the technical challenges associated with the project. NGIC completion date has now moved to end of 2024. Factoring in a further contingency, in line with our previously stated approach, first gas is now expected during 2Q 2025.
“Carbon intensity of 32.7 kgCO2e/boe (9M 2023: 26.0 kgCO2e/boe) for operated assets. High 3Q 2024 emissions due to increased flaring during planned maintenance at Oben and following the resumption of operations at Ohaji, OML53. The anticipated impact of the End of Routine Flaring projects, starting in the second half of 2025, is expected to materially reduce absolute emissions by up to 70per cent.
“Safety culture maintained, achieved 8.2-million-man hours without LTI at Seplat operated assets year to date.
“Revenues of $715.3 million, down 11.7per cent vs. 9M 2023 ($810.4 million), largely due to overlift reported at 9M 2023. Adjusting for overlift/underlift 9M 2024 revenue $724 million, +6per cent compared to 9M 2023 of $683 million.
“Average price realisations. Oil: $82.89/bbl (9M 2023: $82.76/bbl); Gas: $3.18/Mscf (9M 2023: $2.87/Mscf).
“Adjusted EBITDA $383.0 million, up 25per cent from $306.4 million in 9M 2023, driven by higher revenue (adjusted) and lower costs. Cash generated from operations of $423.3 million, up 17per cent from $362.3 million in 9M 2023. Capex of $157.0 million (9M 2023: $125.4 million), reflecting higher drilling activity.
“Balance sheet cash at 9M 2024, $433.9 million (9M 2023: $391.0 million). Net debt at end September, $270 million, down from $366 million at end June 2024. $38.5 million of Reserve-Based Lending (RBL) borrowings repaid year to date. Period end Net Debt to EBITDA was 0.5x.
“Received Ministerial Consent for acquisition of entire issued share capital of Mobil Producing Nigeria Unlimited (‘MPNU’).
“Strong underlying business performance supports increase to core dividend. 3Q 24 dividend raised by 20per cent to $3.6 cents. Total core dividend declared to date in 2024 $9.6 cents per share.
“2024 production guidance narrowed to 46,000 – 50,000 boepd (previously 44,000 – 52,000 boepd).
“Capex (capital expenditure) now expected at the top end of the guidance range ($170 million – $200 million). “
