Seplat Energy PLC has reported strong performance in its unaudited results for the nine months ending September 30, 2024, with an operating profit increase to ₦411.3 billion, a significant rise from ₦91.3 billion year-on-year. This success has allowed the company to boost its core dividend by 20% to $0.036 per share in Q3 2024, totaling $0.096 per share in dividends so far for the year.
Key financial achievements included a revenue increase to ₦1.071 trillion from ₦478.1 billion, and cash generated from operations rose to ₦633.8 billion from ₦213.8 billion year-on-year. Average working interest production was steady at 47,525 barrels of oil equivalent per day (boepd), with daily oil output up by 6%, though gas production declined by 11% compared to the previous year. The company anticipates production of 46,000–50,000 boepd for the full year.
Operational Highlights
– Production & Maintenance: The Oben gas plant completed turnaround maintenance, with higher gas production expected in Q4. Abiala achieved its first oil in September, with exports slated to start in Q4 2024, targeting around 5,000 bopd by Q1 2025.
– Infrastructure & Drilling: Drilling activities saw nine wells completed, seven within the 2024 program. The ANOH Gas project advanced with a completed 23km spur line, though the OB3 pipeline faced further delays, pushing the expected first gas to Q2 2025.
– Environmental Impact: Carbon intensity was noted at 32.7 kgCO2e/boe due to increased flaring during planned maintenance. A reduction of up to 70% in emissions is anticipated with the end of routine flaring projects in 2025.
– Safety: The company reported 8.2 million man-hours without a Lost Time Injury (LTI).
Financial Highlights
– Revenues: Reported at $715.3 million, down from $810.4 million year-on-year, but adjusted for inventory, revenue rose by 6% to $724 million.
– Earnings: Adjusted EBITDA increased by 25% to $383.0 million, while cash generated from operations climbed to $423.3 million, a 17% rise.
– Capex & Debt: Capital expenditure reached $157.0 million due to increased drilling. Cash reserves stood at $433.9 million with net debt reduced to $270 million.
Corporate Updates
Seplat recently received Ministerial Consent for acquiring Mobil Producing Nigeria Unlimited (MPNU), a transformative acquisition that CEO Roger Brown described as a “game-changer” for Seplat Energy.
“Our business continues to perform strongly, and we’re excited about the additional growth from both organic and inorganic opportunities,” said Brown. The CEO noted that this growth, combined with supportive commodity prices and solid operational performance, led to a 20% increase in quarterly dividends, signaling the company’s underlying strength.
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