Seplat Energy Plc on Thursday disclosed the company generated N125.54 billion profit before tax according to its 2023 audited result and accounts, an increase of 45 percent from N86.73 billion reported in the 2022 financial year.
The company on the Nigerian Exchange Limited (NGX) and London Stock Exchange (LSE) announced N81.33 billion profit after tax in 2023, representing an increase of 83 percent from N44.43 billion in 2022.
The leading Nigerian independent energy company announced a final dividend at a rate of $0.03/share (3 cents/share) and a special dividend at a rate of $0.03/share (3 cents/share).
Exploration and Production company declared N696.9 billion revenue, a growth of 73 per cent from N403.91 billion in 2022.
According to the company, oil prices in 2023 retreated from the highs seen in 2022 but overall remained supportive of continued cash generation.
It explained further that “The average Brent crude oil price in 2023 fell 17.0 per cent to $82.15/bbl, from $98.95/bbl. in 2022. For Seplat, our average realised oil price reflects the market reality: it fell 18.0 per cent to $83.39/bbl in 2023, down from $101.67/bbl in 2022. We recorded an average premium to Brent of $1.24/bbl, in 2023.
“Revenue from oil and gas sales for 2023 rose 11.5 per cent to $1,061.3 million from $952.0 million in 2022. Excluding the figure of $924.8 million ($27.2 million overlift), total oil and gas sales were $962.4milliion, 4.1 per cent higher than 2022’s equivalent revenue figure of $924.8miillon ($27.2 million overlift)
“Crude oil revenue rose 11.7 per cent to $937.9 million in 2023 from $839.5 million in 2022. The growth in crude oil revenue is attributable to the higher production, lower pipeline losses and overlift recorded during the period; these combined to offset the decline in realised oil prices.
“The total overlift for the period stood at $98.9 million (equivalent to 1.3 MMbbls) and is adjusted for in other income. Excluding the overlift, crude oil revenue was $839.0 million, 3.2 per cent higher than equivalent crude oil revenue of $812.3 million in 2022. Total liquids lifted during the period rose 36.3per percent y/y to 11.3 MMbbls, compared to 8.3 MMbbls in 2022. Gas sales revenue recorded a 9.7 per cent y/y increase, reaching $123.4 million in 2023 (compared to $112.5 million in 2022). Gas sales represented 12 per cent of total revenue in 2023.
“This growth is attributed to a modest increase in realised gas prices and a rise in sales volume. The average realised gas price rose by 2.8 per cent to $2.90/Mscf, while gas production saw a 1.6per cent increase to 41.6 Bscf during the same period (compared to 41.0 Bscf in 2022). The average realised gas price improvement reflects the impact of higher gas price negotiated with off-takers.
“The group’s average reconciliation loss factor improved to 3.5 per cent in 2023 (compared to 10.7 per cent in 2022), attributed to enhanced security measures and strengthened asset integrity management during the period.”
The Chief Executive Officer, Seplat Energy, Roger Brown in a statement 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 eight per cent 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 nine per cent on prior year estimates.
“Our revenue exceeded $1billon, 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.”
On outlook for this year, he said, “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.”
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