Seplat’s profit hits 128.9 per cent, to de-risk market routes, lower losses

Notwithstanding a gross profit of N114.2 billion in its 2021 full year operations against N44.83 billion achieved in the corresponding period in 2020, Seplat Energy Plc has unveiled plans to diversify and de-risk routes to market, assuring higher revenues from significantly better uptime and lower reconciliation losses.

Although the firm pointed out that the 2021 performance was affected by outages at forcados terminal, it stated that this will no longer have such an impact as the company has concluded plans to switch to the new Amukpe-Escravos Pipeline, to be launched in March this year.

The company’s audited result for the full year ended December 31, 2021 showed N114.2 billion gross profit, representing 128.9 billion when compared to N44.83 billion posted in the previous year.

Its revenue also increased by 38.2 per cent to N293.6 billion, higher than N190.92 billion posted in 2020 while Profit Before Tax (PBT) also increased by 321.1 per cent to N71 billion.

The firm attributed the improved performance to aggressive investment drive and sustained efforts to boost expansion.
Commenting on the improved performance, the Chief Executive Officer of the company, Roger Brown said the company announced a major acquisition last week despite a challenging year for Nigerian oil and gas, stating that the improved performance clearly show how the firm’s increasing financial strength has made such an acquisition possible, without the need to dilute shareholders value.

“The addition of Mobil Producing Nigeria Unlimited (MPNU) nearly trebles our production and doubles our reserves on a pro forma 2020 basis, reinforcing our leadership of Nigeria’s indigenous energy sector and enabling us to generate strong future cash flows that will underpin our investment in Nigeria’s energy transition and improve our overall stakeholder returns.”

Furthermore, Brown disclosed that once the acquisition of MPNU, the company would add significant production from offshore assets with dedicated export terminals that also have higher availability and lower reconciliation losses.

He pointed out that the addition of MPNU offers a significant undeveloped gas resource base, which, alongside the ANOH gas project development, will underpin Nigeria’s energy transition and drive domestic and export revenues when developed.

“Our financial strength is matched by the skills and ambitions of our staff and we look forward to welcoming more than a thousand highly trained colleagues from MPNU and working with them to ensure their smooth onboarding into Seplat Energy.

“Together we will build a sustainable, world-class company that generates attractive returns for stakeholders and delivers energy transition for one of the world’s largest and most rapidly growing populations.”