Seplat Energy targets $30 million yearly dividend from AGPC

Seplat Energy has disclosed that it is targeting a dividend net stream of $30 million yearly from Anoh Gas Power Company Limited (AGPC). According to the Chief Executive Officer of the company, Roger Brown
Seplat-Energy

Seplat-Energy

Seplat Energy has disclosed that it is targeting a dividend net stream of $30 million yearly from Anoh Gas Power Company Limited (AGPC). According to the Chief Executive Officer of the company, Roger Brown, the dividends are expected to begin approximately 12 to 18 months after the first gas.
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Reviewing its performance at the company’s virtual yearly general meeting, Brown said upon commencement of operations, ANOH will provide two income streams to Seplat.

Besides, shareholders at the meeting approved a total dividend of 15 cents. This comprises a special dividend of three cents per share for the 2023 business year aside from the core dividend of 12 cent per share.

“The ANOH gas plant has a design capacity of 300 mmscf/d. Seplat will report our net share (40 per cent working interest) of wet gas production as working interest production,” he said. He said gas sales will benefit from lower opex than the current gas operations by not having to bear the burden of midstream processing costs.

In addition, he disclosed that Seplat will receive dividends from the AGPC’s profits as a 50 per cent owner in the AGPC-incorporated joint venture. Given this, he pointed out that the firm anticipates c.6-month ramp up to plateau production after the first gas, during which period AGPC will establish plant stability and off-take performance. He added that incorporating these elements, the company estimated that AGPC should provide a dividend stream net to Seplat of $30 million per annum.

“We expect that a $10/bbl change in the oil price would change the expected dividend by $5 million, while a 1 per cent change in production deferment changes the expected dividend by $1m; both figures are net to Seplat,” he said.
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