… Gross profit hits N118.5bn, rising by 93.5%
… $44.1m dividend was paid in the period
Seplat Energy Plc, a leading Nigerian independent energy company listed on both the Nigerian Exchange Limited and the London Stock Exchange, announces its unaudited results for the nine months ended 30 September 2022, recording a rise in profit before tax by 90.3 per cent to N77.5bn from N38.6bn year-on-year.
The company also generated cash from its operations to the tune of N154bn from N64.9bn year-on-year, rising by 124.7 per cent.
The energy Company’s also grew its revenue by 34.4 per cent to N258.7bn from N182.7bn year-on-year; as its gross profit soars to N118.5bn from N58.1bn year-on-year, rising by 93.5 per cent.
Seplat Energy is paying a third quarter (Q3) dividend of US2.5 cents per share, taking 9M 2022 total to US7.5 cents per share ($44.1 million paid in the period).
In its operations, Seplat Energy demonstrated a strong safety record, which extended to 30.5 million hours without lost-time injury at Seplat Energy-operated assets; eight (8) wells completed, another seven wells to be drilled in Q4 (currently drilling four wells); and the Amukpe-Escravos Pipeline commenced commercial operations in August, with 700 kbbls lifted in October.
Financial highlights
Revenues are up 34.4% to $618.6 million ($678.9 million including underlift), driven by higher realised oil prices of $108.25/bbl.
EBITDA up 27% to $337.9 million (adjusted for non-cash items)
Strong cash generation of $368.1 million, capex of $110.3 million
Strong balance sheet with $304.8 million cash at the bank, net debt of $452.2 million
Production opex of $9.3/boe
Average realised gas pricing sustained at $2.80/Mscf despite pricing pressure on domestic gas delivery obligation
Received $13.4 million out of a total of $55 million in accordance with Ubima divestment agreement
Q3 dividend of US2.5 cents per share, taking 9M 2022 total to US7.5 cents per share ($44.1 million paid in the period)
Operational highlights
Strong safety record extended to 30.5 million hours without lost-time injury at Seplat Energy-operated assets
Volumes of 43,337 boepd, impacted by oil theft and outages of key infrastructure
Amukpe-Escravos Pipeline commenced commercial operations in August, 700 kbbls lifted in October.
Eight wells completed, and another seven wells are to be drilled in Q4 (currently drilling four wells)
Full-year guidance adjusted downwards to 40-44 kboepd owing to pipeline and export terminal outages, which were materially worse in Q3; capex maintained at $160 million, capex per well lower due to improved drilling performance
Update on proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU)
Seplat Energy reiterates that the Sales & Purchase Agreement (SPA) signed on 25 February 2022 to acquire Exxon’s shallow water operations in Nigeria, MPNU, remains valid
The Company remains confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law
Q3 corporate updates
Provisional applications to the NUPRC (Nigerian Upstream Petroleum Regulatory Commission) for the voluntary Petroleum Industry Act (PIA) conversion of operated Oil Mining Leases
Successfully refinanced existing $350m RCF due September 2023 with a new three-year $350 RCF due April 2026
Seplat West (OMLs 4, 38 &41) was awarded ISO 55001 (Asset Management), a first for an African E&P company
Commenting on the results, Mr. Roger Brown, Chief Executive Officer, Seplat Energy Plc, said:
“Despite an unusually challenging quarter for the Nigerian oil and gas industry, with key export routes being unavailable because of force majeure, we have demonstrated that we have a resilient business. The Amukpe-Escravos Pipeline has been operational since August and we have had our first oil export this month. The Trans Forcados Pipeline has now resumed operations and we continue to increase our use of alternative export routes, giving us confidence that the final quarter of the year will show some improvement in volumes.”
“We are working closely with all the relevant stakeholders on our transformational acquisition of MPNU and remain confident that the proposed acquisition will be brought to a successful conclusion in accordance with the law. The acquisition will add significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.”
