Seplat Energy PBT hits N34.7 billion

Seplat Energy Plc has posted a profit before tax (PBT) of N34.7 billion in its first-quarter operations against N10.6 billion achieved in the corresponding period in 2021.

The company’s unaudited results for the three months ending on March 31, 2022, showed 197.8 per cent. The company also generated cash from its operations to the tune of N74.4 billion from N1.7 billion year-on-year, representing 197.8 per cent increase, while revenue grew by 58.6 per cent to N100.6 billion, from N57.9 billion posted in 2021.

Its gross profit also rose from N20.1 billion to N48.8 billion representing 122.3 per cent growth. Reviewing its performance, the Chief Executive Officer of the company, Roger Brown, said the company 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 said. He said the company’s proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU) was on course.

“We are awaiting the necessary approvals from government and regulators and expect the transaction to be complete in the second half of this year. The effective date of January 1, 2021 means we will benefit from higher recent oil prices and as we have previously reported, the addition of MPNU will treble our production and double our reserves on a pro forma 2020 basis.

According to him, the acquisition will reinforce the firm’s leadership of Nigeria’s indigenous energy sector, as well as enable them to generate strong future cash flows that will underpin their investment in Nigeria’s energy transition and improve 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 announce the decision to divest the Group’s interest in the Ubima marginal field for a consideration of $55 million, which marginally reduces the company’s 2P reserves by 2 MMboe to 455 MMboe.”

“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 said.