Seplat Energy records $527m revenue, to end routine flaring by 2024
Seplat Energy Plc has recorded a half-year revenue of $527 million from $308.8 million year-on-year, with a dividend of $2.5 cents per share declared.
The company’s unaudited results for the six months ended 30 June 2022, showed that the revenue for the period appreciated by 71 per cent.
According to a financial report made available to The Guardian, the company reported a rise of 238 per cent in its half-year 2022 profit before tax (PBT) to $209.9 million from $62.1 million year-on-year. The company also maintained a strong balance sheet with $350m cash at bank.
The indigenous energy company also reported a 208.5 per cent rise in gross profit to $274.3 million from $88.9 million year-on-year, and has committed to stopping routine flaring by the end of 2024.
Commenting on the results, Chief Executive Officer, Seplat Energy Plc, Roger Brown, said: “Production increased strongly in the second quarter, achieving 52.4 kboepd across our operations, and we expect to maintain higher volumes for the rest of the year now that we plan to export liquids through the more secure Amukpe-Escravos Pipeline.
“Having divested our interest in Ubima because of its high production costs and export difficulties, we recently acquired a 95 per cent interest in the Abiala marginal field and plan to begin operations there next year using existing infrastructure in OML 40. This is consistent with the strategy for low-cost, low-risk upstream growth we announced last year.
“We remain confident that our transformational acquisition of Mobil Producing Nigeria Unlimited (MPNU) will be approved, adding significant reserves and production capacity that will strongly reinforce Seplat Energy’s position as Nigeria’s leading indigenous oil and gas producer.
“We have recently launched a roadmap for decarbonisation, with a clear path to ending routine flaring by 2024. In addition, our ‘Tree for Life’ initiative will plant five million saplings to sequester carbon across five states. All of these initiatives demonstrate our strategic commitment to build a sustainable company that delivers energy transition for the benefit of all Nigerians,” he stated.
He said the company expects would drill four additional oil wells in the coming quarter to arrest decline and support production growth across the asset base, complete ongoing projects, invest in maintenance capex to secure the existing assets and continue investments in gas.