Seplat Energy Plc, an independent energy company listed on both the Nigerian Exchange and the London Stock Exchange, has achieved an impressive 83% growth in earnings for the financial year 2023. According to the audited results for the twelve months ending on December 31, 2023, the annual profit surged from N44.433 billion in 2022 to N81.33 billion.
Emeka Onwuka, the Chief Financial Officer of Seplat Energy Plc, reported in a regulatory filing with the Nigerian Exchange Group on Thursday that the company’s revenue in local currency reached approximately N697 billion, marking a substantial 73% increase from the N404 billion recorded in the previous year.
In terms of US dollars, the company’s profit attributable to equity holders for the 12 months ending December 31, 2023, amounted to $83.1 million, a notable rise from the $62.4 million reported a year ago.
“Following a sterling performance, the board is recommending a final dividend of $0.03 per share and a special dividend of $0.03 for the period, payable to shareholders on record on April 26. It paid $0.025 and $0.05, respectively, a year ago”.
Further checks on Seplat’s scorecard showed that revenue grew by 12 per cent year on year to $1,061.3m from $951.8m in 2022. The average realised oil price was $83.39 per barrel (bbl), lower than $101.67/bbl achieved in 2022.
“Also, the average realised gas price settled at $2.90/Mscf, a decline from $2.82/Mscf in the comparable year. The company said unit production operating expenses rose marginally to $10.4/boe from $10.3/boe in 12 months”, Onwuka said.
The Chief Executive Officer, Seplat Energy Plc, Roger Brown said the company’s ability to deliver production growth, fortified balance sheet and reward shareholders despite facing some unexpected challenges during the year.
“Operational performance was strong, production increased 8% 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 9% on prior year estimates.
“Our revenue exceeded $1bn, 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”.
On outlook, Mr Brown said in 2024, “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 the first gas expected in 3Q 2024.
“Finally, we have high confidence that we will conclude the transformational acquisition of MPNU this year”.
