Seplat Energy Records N34.7bn Profit, N100.6bn Revenues

BY CHIKA IZUORA and OLUSHOLA BELLO, Lagos

Seplat Energy Plc, in its unaudited results for the three months ended March 31, 2022, recorded a rise in profit before tax by 197.8 per cent to N34.7 billion from N10.6 billion year-on-year.

The board recommended an interim dividend of US2.5 cents per share in the period under review.

The company, in its results for the first quarter (Q1) released on the Nigerian Exchange (NGX), also generated cash from its operations to the tune of N74.4 billion from N1.7 billion year-on-year, rising by 197.8 per cent.

The energy company also grew its revenue by 58.6 per cent to N100.6 billion from N57.9 billion year-on-year; as its gross profit soars to N48.8 billion from N20.1 billion year-on-year, rising by 122.3 per cent.

In its operations, Seplat Energy demonstrated a strong safety record, which extended to 26.1 million hours without LTI from operated assets (2.0 million hours in Q1 2022).

Meanwhile, the company’s balance sheet stood at $312.2 million cash at bank, net debt of $442.6 million.

Speaking on the results, the chief executive officer, Seplat Energy, Mr. Roger Brown said: “Seplat Energy delivered a good quarter that benefited from higher oil pricing, which offset lower production owing to continuing problems with the Trans Forcados Pipeline. However, the alternative Amukpe-Escravos Pipeline is mechanically complete and once we have signed the commercial agreements, we expect Chevron to be lifting our oil through the Escravos Terminal in the third quarter.”

He noted that, “our proposed acquisition of MPNU remains on course. We are awaiting the necessary approvals from government and regulators and expect the transaction to complete in the second half of this year.

“The acquisition will reinforce our leadership of Nigeria’s indigenous energy sector and enabling us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns.

“It will also bring a significant undeveloped gas resource base which, alongside our ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.”

“We have proven we have the financial strength and credibility to attract international finance into Nigeria’s energy sector and this will help us in our aim to deliver energy transition and provide cleaner, more reliable and more affordable energy for Nigeria’s young and growing population,” he pointed out.