Seplat posts N244bn pre-tax profit, up 461%

Seplat Energy Plc on Tuesday posted a pre-tax profit of N244 billion for the half year ended June 30, 2024.

This indicated an increase of 461 per cent from N43.5 billion recorded in the corresponding period of the year 2023.

The company disclosed this in its unaudited results for the half-year result for the six months ended June 30, 2024, which was sent to the Nigerian Exchange Ltd. (NGX) in Lagos.

It declared a total dividend of six U.S. cents per share for the period under review, while cash generated stood at N308.2 billion.

The company’s production averaged 48,407 barrels of oil equivalent per day (boepd) in the half year of the ongoing year, compared to 50,805 boepd recorded in the same period of last year.

Also, Seplat Energy advanced its operating profit to N285.2 billion within the past six months of the current year from N60.2 billion posted in the corresponding months of the year 2023.

The energy firm achieved more than 4.9 million hours without Lost Time Injury (LTI) at Seplat-operated assets in the period under review.

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Its average deferments also improved to 24 per cent, compared to 26 per cent posted same period last year.

The revenue of the energy company stood at 421.6 million dollars in half-year 2023, from 547 million dollars posted in the corresponding period of 2023

In the half year of 2024, Seplat reported an underlift of 55.8 million dollars, against an overlift of 59.4 million dollars recorded in the same period of the previous year.

The energy company said it realised an average oil price of 85.55 dollars/bbl in the period under review, compared to 79.54 dollars/bbl posted same period of the year 2023.

Its average realised gas price also rose to 2.95 dollars/Mscf for the half year 2024, against 2.87 dollars/Mscf recorded in the half year of the previous year.

Commenting on the results, Mr Roger Brown, Chief Executive Officer, Seplat Energy, said the energy firm delivered a solid performance in the first half of 2024.

Brown stated that continued operational strength positions Seplat well for the second half of the year, noting that the coming months are set to be an active one for the company.

He explained that reported cash generation was softened by the underlift in the period, but added that this was largely a timing effect, while its cash generation and balance sheet remain strong.

“In May, we were honoured to receive President Bola Tinubu for the commissioning of the ANOH gas plant and associated pipelines, and the project remains on track for the first gas in the third quarter of 2024.

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“We thank our government partners for their efforts toward completion of critical pipeline infrastructure in recent weeks.

“In the second half of 2024, we also look forward to the first gas on the Sapele gas plant, which alongside debottlenecking activities at Oben should further enhance gas production.

“We are well on our way to increasing gas production in support of Nigeria’s ‘Decade of Gas,” he said.

According to him, in the firm’s oil business, early results from Sibiri have been modestly ahead of expectations.

He also said that the company had completed the first of two planned wells, while production at Abiala should commence in some weeks.

Brown predicted a higher production at Ohaji once stable operations on the Trans Niger Pipeline are achieved.

He said that combined with growth in the company’s gas business, it was looking forward to a strong second half with momentum in 2025.

The CEO added that during the quarter under review, some important steps were made that supported the completion of its proposed acquisition of Mobil Producing Nigeria Unlimited (MPNU).

He expressed confidence and commitment to its completion, while the firm continue to work with regulators, the government, and other parties to ensure its successful completion.

Seplat Energy is an indigenous Nigerian energy company with a strategic focus on Nigeria.

The company is listed on the Premium Board of the NGX and the Main Market of the London Stock Exchange (LSE).

The energy firm is pursuing a Nigeria-focused growth strategy and is well-positioned to participate in future divestment programmes by international oil companies, farm-in opportunities and future licensing rounds