Seplat posts N91.1b profit in 2023 first quarter

Seplat Energy Plc has disclosed that its gross profit soared to N91.1 b in the first quarter (Q1) 2023, from N48.8 billion same period last year, rising by 69 per cent.The energy firm, in its unaudited result for the three months ended March 31, 2023, made available to The Guardian, also recorded a rise in profit before tax by 3.2 per cent to N39.5b from N34.7b year-on-year.
   
Commenting on the results, the Independent Chairman, Basil Omiyi, said: “Seplat Energy’s management and staff have once again delivered excellent performance, with production volumes up, unit production cost down and strong cash generation enabling the board to increase our annual core dividend target from US10 cents to US12 cents per share, paid in equal quarterly dividends. As a result, we have declared a Q1 2023 dividend of US 3 cents per share.
  
“The year has started strongly, and we are now seeing the benefits of the AEP, through which we are exporting significant amounts of oil.
On the ANOH gas plant, our partners have made good progress in the quarter on delivering the OB3 and Spur pipelines, as well as the necessary gas wells, and we maintain Q4 2023 for first gas. We continue to engage with all relevant parties in the proposed acquisition of MPNU and are confident of a successful outcome.”
 
The energy company also grew its Q1 revenue by 36.9 per cent to N152b from N100.6b year-on-year, driven by higher production volumes. It, however, recorded a strong Q1 cash generation of $139.9m and capex of $44.7m with balance sheet strengthened with $459.7m cash at bank, net debt down to $288.2m (excluding Mobil’s $130m cash deposit).
  
In its operations, Seplat said that its working interest production increased by 8.6 per cent to 51,720 barrels of oil equivalent per day (boepd), in upper half of guidance range for the period.
  
According to the report, the Amukpe-Escravos Pipeline (AEP) is supporting higher export volumes from key western assets, while the new OP-15 well is boosting liquids production at Oil Mining Lease (OML 40), with Oben-34 well boosting gas production.
 
The company said that it achieved more than 3.8 million hours without Lost Time Injury (LTI) at its assets during the period.